According to the Balanced Scorecard depicted in Table 2.4, capturing market share is a strategic objective, while bond ratings, growth in earnings per share, revenue growth, and increases in returns on equity are all financial objectives.
-Which of the following is NOT an example of a strategic objective?
A) Introduce five new products over the next ten years.
B) Reduce product development time by one third to half the current rate of 24 months.
C) Improve teamwork across business units by doubling the number of intra-company projects.
D) Boost internal cash flows by seven percent to fund new research and development activities.
E) Improve security and stability of information technology capabilities to prevent breaches and outages.

Question

Quizplus · Accepted Answer

Boosting internal cash flows is a financial objective, not a strategic objective. Strategic objectives are focused on achieving long-term goals, such as capturing market share, entering new markets, or improving customer relationships. While improving cash flows may be necessary to achieve these strategic objectives, it is not a strategic objective in and of itself.

According to the Balanced Scorecard Depicted in Table 2