Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is NOT a feature of Strategic Planning?

1. Short term focus

2. Looks at the whole organization

3. Board Level involvement

4. Defines resource requirements

The correct answer is: Short term focus

Strategic planning is inherently concerned with the long-term direction and goals of an organization. Its main objective is to establish how the organization will navigate its future, in which long-term goals and aspirations are considered. A short-term focus typically pertains to operational or tactical planning, which concentrates on specific tasks and immediate outcomes. In contrast, strategic planning embraces a broader timeframe, examining where the organization wants to be in several years and devising a roadmap to achieve those aspirations. The other options accurately represent features of strategic planning. Considering the whole organization ensures that strategic decisions reflect the organization's overarching vision and mission. Board-level involvement signifies the importance of leadership in setting the direction and priorities. Defining resource requirements aligns with strategic planning's role in identifying the necessary allocations for accomplishing long-term goals. Thus, the key feature distinguishing strategic planning is its long-term orientation, making a short-term focus not a characteristic of strategic planning.