Which term describes the plan that outlines how a firm intends to achieve its goals through specific actions?

Which term describes the plan that outlines how a firm intends to achieve its goals through specific actions?

• A. Goals
• B. Strategies
• C. Tactics
• D. Budgeting

Answer: (B)

The main idea here is distinguishing between what a firm wants to achieve and how it plans to get there. Goals state the desired outcomes or end results. The plan that outlines how to reach those goals through a set of coordinated actions is the strategy. A strategy answers the question of the overall direction and approach a firm will take to compete and grow, guiding resource allocation and major initiatives across the organization. Tactics are the specific steps or actions used to implement the strategy, typically concrete and short-term. Budgeting, on the other hand, focuses on forecasting and allocating financial resources to support activities, not on the overarching plan itself. So the term that best fits “how the firm intends to achieve its goals through specific actions” is strategy.

The main idea here is distinguishing between what a firm wants to achieve and how it plans to get there. Goals state the desired outcomes or end results. The plan that outlines how to reach those goals through a set of coordinated actions is the strategy. A strategy answers the question of the overall direction and approach a firm will take to compete and grow, guiding resource allocation and major initiatives across the organization.

Tactics are the specific steps or actions used to implement the strategy, typically concrete and short-term. Budgeting, on the other hand, focuses on forecasting and allocating financial resources to support activities, not on the overarching plan itself. So the term that best fits “how the firm intends to achieve its goals through specific actions” is strategy.