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CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management

A company's strategy requires a 15% market share by the end of year 3. At the end of year 1, the actual share is 6%, against an internal milestone of 9%. Management reviews the gap, finds the distribution network is inadequate, and decides to add distributors. Which stage of the strategic management process does this review-and-correct activity represent?

This is strategy evaluation and control. Management measured actual performance against a set milestone, found a shortfall of three percentage points, diagnosed the cause in distribution, and took corrective action. Such comparison and correction of deviations is the defining feature of the control stage of the process.

  1. AMission formulation
  2. BStrategy evaluation and controlCorrect
  3. CEnvironmental scanning only
  4. DGoal setting

Explanation

Comparing actual performance (6%) with the standard (9%), analysing the deviation and taking corrective action is the essence of strategy evaluation and control. Goal setting and mission formulation happen earlier, and scanning alone does not involve measuring performance against a milestone.

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