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CMA Intermediate · Operations Management and Strategic Management

Formulation and Implementation of Strategy for CMA Inter

Formulation and implementation of strategy covers how a firm decides where to compete and how to put that decision into action. You study the formulation process, levels of strategy, grand strategies, analysis tools, implementation, structure, leadership and control. Solve questions by naming the concept, defining it briefly, then applying it to the case.

What this chapter covers

This chapter follows the strategy cycle from start to finish. You begin with how an organisation sets direction and chooses a strategy. Then you see how strategy differs at corporate, business and functional levels. Next come the grand strategies of stability, growth and retrenchment, and the tools used to choose among them, such as SWOT, BCG matrix and other portfolio models.

The second half moves from choice to action. Implementation needs plans, resources, structure, leadership and culture. The chapter ends with strategic evaluation and control, which checks whether results match intent and corrects course when they do not.

This chapter is the core of the strategic management half of Paper 9. It builds on the earlier ideas of vision, mission, objectives and environment scanning. It also links to the operations half, because operations strategy, capacity and quality decisions are part of functional-level strategy and of implementation.

The chapter is mostly concept-based, so it suits students who learn well by understanding rather than by calculation. Its topics fit both question types in the paper: short standalone MCQs that test definitions and distinctions, and descriptive questions that ask you to explain, differentiate or apply a model to a situation. Examiners often give a short business scenario and ask which strategy or tool fits. If you know the terms precisely and can apply them, you can score reliably here, and the same vocabulary helps in other chapters of the paper.

Formulation and Implementation of Strategy: topics in the order to study them

  1. 1Strategy Formulation ProcessIt gives you the overall flow of the chapter, so every later topic has a place to fit.
  2. 2Levels of StrategyYou need to know who decides what, at corporate, business and functional level, before studying specific strategies.
  3. 3Grand Strategies: Stability, Growth, RetrenchmentThese are the main choices a firm makes, and the tools in the next topic help you pick among them.
  4. 4Strategic Analysis Tools and Portfolio ModelsOnce you know the options, you learn the models that justify choosing one over another.
  5. 5Strategy Implementation FrameworkThis is the bridge from choice to action, covering plans, resources and the steps to execute.
  6. 6Organisational Structure and Leadership for StrategyStructure and leadership are the main enablers of implementation, so they follow the framework.
  7. 7Strategic Evaluation and ControlIt closes the cycle by checking results against the strategy, so it is best studied last.

How to prepare Formulation and Implementation of Strategy

Treat this chapter as one connected story, not seven separate lists. Your aim is to recall terms accurately and apply them to a given situation.

  1. Read the chapter once in study order and draw a one-page flow from formulation to control.
  2. Make a short note for each grand strategy and each model: definition, features, when it suits, and one Indian company example.
  3. Practise drawing the BCG matrix and any other portfolio model from memory, labelling every part and what to do with each category.
  4. Build comparison tables for pairs that are often confused, such as strategic versus operational control, or corporate versus business strategy.
  5. Solve past MCQs by topic and note which options tempted you and why they were wrong.
  6. Write three or four descriptive answers in a set format: define, explain with points, give an example, conclude.
  7. Revise from your one-page flow and notes in the last two days instead of rereading the full text.

Common mistakes in Formulation and Implementation of Strategy

  • Mixing up the levels of strategy.

    Fix: Attach one question to each level: which businesses to be in, how to compete, how to support. Use a company example for each.

  • Listing strategies without saying when each suits.

    Fix: For every grand strategy and model, write one line on the situation in which a firm would choose it.

  • Drawing portfolio models carelessly.

    Fix: Practise redrawing each model with correct axes, category names and the usual action for each category.

  • Treating implementation and control as theory to skim.

    Fix: Study them with the same discipline: know the steps, the enablers and the types of control, and prepare short written answers.

  • Writing generic answers that ignore the case.

    Fix: Underline the key facts in the question and use them in your answer, so the examiner sees application, not recall.

Last-day revision: Formulation and Implementation of Strategy

  • Strategy formulation moves from vision, mission and objectives to environment analysis, strategic choice and plan.
  • Corporate level decides the portfolio of businesses; business level decides how to compete; functional level supports them.
  • Grand strategies are stability, growth and retrenchment.
  • Growth can come through expansion, diversification, mergers or strategic alliances.
  • Retrenchment includes turnaround, divestment and liquidation.
  • SWOT matches internal strengths and weaknesses with external opportunities and threats.
  • The BCG matrix classifies businesses by market growth and relative market share.
  • Implementation turns strategy into action through plans, resources, structure, systems and people.
  • Structure should follow strategy, and leadership shapes culture and commitment.
  • Strategic control checks whether the strategy is working and whether its assumptions still hold.
  • Evaluation compares actual results with targets and triggers corrective action.
  • Always link a concept to the case facts in written answers.

Formulation and Implementation of Strategy practice questions

Formulation and Implementation of Strategy in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Formulation and Implementation of Strategy: frequently asked questions

Is this chapter theory only?

Yes, it is concept-based with no calculations. You are tested on definitions, distinctions and application to short business situations. Precision of terms matters more than length.

Which topics should I give the most time?

Give extra time to grand strategies and the portfolio models, because they suit both MCQs and descriptive questions. Then make sure implementation and control are not left for the last day.

How do I answer a descriptive question from this chapter?

Define the concept in a line, then explain with clear points or a diagram if the model needs one. Add a short example or link to the case given, and end with a one-line conclusion.

How do I handle the MCQs?

Most test a precise term or a distinction between two similar ideas. Read all four options, remove those that belong to a different level or stage of strategy, and pick the one that fits the condition stated.