Skip to content

CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management

A Surat diamond-polishing firm's management scans its competitors, adjusts its plans each year as technology and demand change, and treats strategy as something to be continuously reviewed rather than fixed once. This view reflects which feature of the strategic management process?

The feature is that strategic management is a dynamic and continuous process. Because the environment, technology and demand keep changing, the firm must keep scanning, reviewing and revising its strategy, rather than set it once at incorporation or restrict attention to internal operations or budgets.

  1. AIt is a dynamic and continuous processCorrect
  2. BIt is a one-time exercise done at incorporation
  3. CIt deals only with internal operations
  4. DIt is concerned only with budgeting

Explanation

Strategic management is dynamic: strategies are reviewed and modified as the internal and external environment changes, and the process is continuous. It is not a one-time act, it considers the external environment too, and it goes well beyond budgeting.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Strategic Management shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Strategic ManagementFree diagnostic mock

More Introduction to Strategic Management questions