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

A Pune-based packaged snacks company sets out the broad long-term direction it wishes to follow, in the form of a statement that guides all its managers over many years: 'To be the most trusted source of healthy everyday snacks in India.' In strategic management terminology, this statement is best described as the company's:

The statement is a vision. A vision expresses the long-term aspiration and broad direction of an organisation, here becoming India's most trusted healthy snack source. Budgets, tactics and short-term targets deal with narrower, time-bound matters and do not describe the ultimate position the firm wants to reach.

  1. AVisionCorrect
  2. BOperational budget
  3. CFunctional tactic
  4. DShort-term target

Explanation

A vision statement describes what the organisation wants to become in the long run and gives a broad direction to all managers. A budget, tactic or short-term target is narrower and time-bound, so none of them fits a statement about the future identity of the firm.

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