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CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management

A Pune-based packaged-foods company has set a target of becoming the top-three player in India's ready-to-eat segment within five years, with a clearly stated market-share goal. In strategic management terminology, this statement of a desired future position that the firm commits to reach is best described as:

The statement is strategic intent, because it expresses an ambitious, focused aspiration about the position the company wants to hold in the future. Budgets, standing plans and policies guide resources or routine decisions rather than declaring a long-term competitive destination for the entire organisation.

  1. AStrategic intentCorrect
  2. BOperational budget
  3. CStanding plan
  4. DBusiness policy

Explanation

Strategic intent is the purpose a firm strives for, expressed as an ambitious, focused aspiration such as becoming a top player by a set time. A budget is a financial plan for resources, a standing plan covers recurring situations, and a policy is a general guide for decision-making; none of these states a long-term desired position.

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