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

Which of the following best describes the term 'strategic intent' as used in strategic management?

Strategic intent is a clear statement of an organisation's long-term purpose and ambition that guides its direction and stretches its resources. It is not a budget, an operating schedule or a legal objects clause, which are short-term or statutory documents without this directional role.

  1. AA detailed budget allocating funds to each department for the coming year
  2. BA clear statement of the long-term purpose and ambition that guides an organisation's direction and stretches its resourcesCorrect
  3. CA short-term operating schedule prepared by supervisors
  4. DA legal document filed with the Registrar of Companies describing the firm's objects

Explanation

Strategic intent expresses the long-term ambition and purpose of an organisation and creates a stretch that guides its resources and competitive moves. A budget and an operating schedule are short-term operational tools, and a legal objects clause is a statutory document, not strategic intent.

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