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CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning

A mid-sized Pune auto-component maker states: 'We exist to supply reliable, low-cost precision parts to Indian two-wheeler manufacturers through efficient processes and skilled people.' Which element of the strategic hierarchy does this statement represent?

It is a mission statement. It states the firm's present purpose, customers served, products offered and manner of operating. It has no aspirational future picture, which would make it a vision, and no measurable target with a time limit, which would make it an objective.

  1. AMission statement defining purpose, customers and basis of operationCorrect
  2. BVision statement describing a distant ideal state
  3. CQuantified objective with a deadline
  4. DFunctional policy for the production department

Explanation

The statement explains why the firm exists, whom it serves (two-wheeler makers), what it offers and how it competes (low cost, efficient processes). These are features of a mission statement. It contains no aspirational future picture, so it is not a vision, and it has no measurable target or deadline, so it is not an objective.

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