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

Which of the following best describes a 'strategic intent' as understood in Strategic Management?

Strategic intent is an ambitious, long-term purpose that gives the organisation direction and stretches it beyond current resources and capabilities. It is not a budget, a legal objects clause or an operating schedule, which are narrow, short-term or legal documents.

  1. AA detailed monthly cash budget prepared by the finance department
  2. BAn ambitious, long-term purpose that gives the organisation a sense of direction and a stretch beyond its current resourcesCorrect
  3. CA legal document that lists the objects of a company
  4. DA short-term operational schedule for production

Explanation

Strategic intent is a long-term, ambitious aspiration that stretches the organisation beyond its present resources and capabilities and gives direction. The other options describe budgeting, legal objects and operational scheduling, which are not strategic intent.

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