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

Hamsa Textiles, a Surat-based firm, has a stated aim of becoming 'the most trusted supplier of sustainable fabrics in South Asia by 2035'. This statement describes a desirable future position of the company and is meant to inspire all employees. In strategic management terms, this statement is best classified as the firm's:

The statement is a strategic vision. A vision describes the future position an organisation aspires to reach and inspires people towards it. Becoming the most trusted sustainable fabric supplier in South Asia by 2035 is such an aspiration, whereas budgets, policies and procedures concern routine resource use and rules.

  1. AStrategic visionCorrect
  2. BOperational budget
  3. CFunctional policy
  4. DTactical procedure

Explanation

A strategic vision is a forward-looking statement of the position the organisation aspires to reach, intended to inspire and give direction. The statement here describes a future aspiration with a target year, so it is a vision. A budget, policy or procedure deals with resource allocation or routine rules, not an inspiring future picture.

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