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

Tata Motors announces that it will become the leading electric passenger vehicle maker in India within a decade. This statement describes the broad, long-term aspiration that gives the firm a sense of direction. In strategic management terms, this is best described as:

The statement is strategic intent. It expresses a long-term, stretching aspiration that gives the organisation direction and focuses its resources. Tactics, standing procedures and budgetary controls are short-term or routine instruments and do not capture an ambitious ten-year ambition such as becoming the leading electric vehicle maker.

  1. AStrategic intentCorrect
  2. BA functional tactic
  3. CA standing operating procedure
  4. DA budgetary control measure

Explanation

Strategic intent is the long-term, ambitious aspiration of the organisation, expressed as a vision or a goal that stretches resources. A functional tactic, an operating procedure and a budget are narrow, short-term or routine tools and do not describe a decade-long aspiration.

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