CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management
Tara Textiles Ltd. has stated that it wants to become the most trusted sustainable fabric supplier in South Asia within ten years. This statement is best classified as the firm's:
The statement is a strategic vision because it expresses a long-term aspiration about the position the firm wants to attain in the future. A budget, procedure or policy deals with short-term plans, routine steps or decision guidelines, not the desired future state.
- AStrategic visionCorrect
- BOperating budget
- CStandard operating procedure
- DFunctional policy
Explanation
A vision describes the future position an organisation aspires to reach, here a long-term aspiration for ten years. A budget is a quantified financial plan, an SOP is a routine procedure and a policy is a guide for decisions; none of these expresses an aspirational future position.
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