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CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management

In strategic management, which statement best describes a company's vision statement?

A vision statement describes the future position an organisation aspires to reach and provides long-term direction. It is aspirational and broad, unlike short-term targets, operating procedures or legal object clauses, which deal with specific measurable results, routine tasks or legal limits on business activity.

  1. AA statement of the future position the organisation aspires to reach, giving long-term directionCorrect
  2. BA list of quarterly sales targets assigned to each department
  3. CA legal clause in the Articles of Association restricting the company's business
  4. DA description of day-to-day operating procedures for employees

Explanation

A vision statement expresses the desired future state of the organisation and gives long-term direction. Quarterly sales targets are short-term objectives, not vision. Operating procedures are policies or procedures, and the object clause is a legal document, not a vision.

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