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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 the ICAI study material on strategic management?

Strategic intent is a statement of the broad, long-term aspiration that gives direction and purpose to an organisation's efforts. It communicates what the firm wants to achieve and guides decisions, unlike budgets, production schedules or statutory filings, which are short-term or legal in nature.

  1. AA detailed budget allocating funds to each department for the next year
  2. BA statement of the broad, long-term aspiration that gives a sense of direction and purpose to the organisation's effortsCorrect
  3. CA legal document filed with the Registrar of Companies describing the main objects of a company
  4. DA short-term operating schedule for day-to-day production activities

Explanation

Strategic intent expresses what the organisation aspires to become and sets a long-term direction, often through vision, mission and objectives. The budget and production schedule options are short-term operational tools, and the legal document option describes the memorandum, not strategic intent.

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