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

Rohan Foods says its mission is 'to deliver safe, affordable packaged food to every Indian household'. In a strategic management hierarchy, what role does this statement primarily play?

The statement is a mission: it defines the organisation's fundamental purpose, the products it offers and the customers it serves. It is broader and more enduring than quarterly sales targets, and it has nothing to do with auditor appointments or capital cost estimates.

  1. AIt defines the organisation's purpose, its business scope and the customers it exists to serveCorrect
  2. BIt specifies the exact quarterly sales target for each region
  3. CIt lists the statutory auditors appointed for the year
  4. DIt forecasts the cost of capital for the next project

Explanation

A mission statement states the organisation's fundamental purpose, what it does, and for whom. Quarterly targets are goals or operational targets, and auditors and cost of capital are unrelated to mission.

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