Which term best describes a plan that lays out a company's future direction, business purpose, performance targets, and strategy?

• A. Mission
• B. Strategic plan
• C. Strategic vision
• D. Values

Answer: (B)

A strategic plan is the document that connects where the company wants to go with how it will get there. It lays out the future direction, articulates the business purpose, sets concrete performance targets, and specifies the strategy and initiatives needed to achieve them, along with required resources and timelines. The mission explains why the organization exists and its core purpose, but not the detailed path to future goals. The strategic vision describes the aspirational future state the company seeks to achieve, but without the concrete plan and targets. Values are the beliefs guiding behavior, not a plan or targets. So this plan that ties direction, purpose, targets, and strategy together is the strategic plan.