CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management
Sundaram Textiles, a family-owned firm in Tiruppur, states that it wants to 'be the most trusted supplier of organic cotton garments to European retailers by 2032'. In the strategic management hierarchy, this statement is best identified as its:
The statement is a vision because it describes an aspirational future position, being the most trusted organic cotton supplier to European retailers by 2032. A mission would instead describe the firm's present purpose, business and customers, while budgets and policies are operational tools.
- AMission
- BVisionCorrect
- COperating budget
- DFunctional policy
Explanation
A vision describes a desired future position the firm aspires to reach, often with a time frame. A mission describes the present purpose, customers and business scope. The statement is forward-looking and aspirational, so it is a vision, not a mission.
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