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CA Intermediate · Financial Management and Strategic Management · Strategy Implementation and Evaluation

A textile company's board, after launching a new brand, checks every quarter whether its assumptions about customer preferences, raw-material prices and competitor moves still hold true, even before results show up in sales figures. Which type of strategic control is being exercised?

This is premise control. Premise control continuously tests whether the assumptions underlying the strategy, such as customer tastes, input prices and competitor actions, are still valid. It differs from implementation control, which tracks milestones, and from special alert control, which responds to sudden unexpected events.

  1. AStrategic surveillance
  2. BPremise controlCorrect
  3. CImplementation control
  4. DSpecial alert control

Explanation

Premise control systematically checks whether the assumptions on which the strategy was based remain valid. Strategic surveillance is a broad, unfocused monitoring of many sources. Implementation control assesses whether plans and milestones are progressing as intended, and special alert control is a rapid reaction to sudden unforeseen events.

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