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

Kaveri Textiles, a Coimbatore firm, has a declared aim of becoming the most trusted brand of organic cotton apparel in South India. Its board then sets targets such as 15% revenue growth in two years and opening 20 exclusive stores. In strategic management terms, the targets for revenue growth and store openings are best classified as:

The targets are objectives, because objectives are specific, measurable results to be achieved within a stated time, such as 15% revenue growth in two years and 20 stores. Vision is the broad aspiration, while policies and values guide decisions and behaviour rather than set quantified targets.

  1. AVision
  2. BObjectivesCorrect
  3. CPolicies
  4. DValues

Explanation

Objectives are specific, measurable end results to be achieved within a time frame, such as 15% growth in two years. The aim of being the most trusted brand is the vision/mission-level statement. Policies are guidelines for decisions and values are guiding beliefs, so they do not fit quantified targets.

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