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CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management

A packaging firm in Pune studies changes in government policy, customer preferences, competitor moves and raw material availability to identify opportunities and threats. Which stage of the strategic management process is this?

This is environmental scanning. The firm is examining external factors such as policy, customer preferences, competitors and material supply to identify opportunities and threats. It is an analytical stage before strategy is formulated, unlike implementation or control, which act on a chosen strategy.

  1. AStrategy implementation
  2. BEnvironmental scanningCorrect
  3. CStrategic control
  4. DOperational budgeting

Explanation

Studying external factors such as policy, customers, competitors and supply to find opportunities and threats is environmental scanning (external analysis). Implementation involves executing chosen strategy, and control involves monitoring results against targets.

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