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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 used in strategic management?

Strategic intent is a clear, compelling statement of the long-term ambition an organisation wants to achieve. It provides direction and focus for all efforts, unlike operational schedules, annual budgets or financial statements, which deal with short-term activity or reporting.

  1. AA detailed schedule of daily operational tasks for each department
  2. BA clear and compelling statement of the long-term ambition an organisation wants to achieve, which gives direction to all its effortsCorrect
  3. CA statutory financial statement prepared at the end of the year
  4. DA short-term budget for allocating funds among products

Explanation

Strategic intent expresses a long-term, stretching ambition that focuses the organisation's energy and resources. Operational schedules and budgets are short-term tools and do not set the overall direction, and financial statements are reporting documents.

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