Skip to content

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

Aarav Foods adopted a cost leadership strategy but found that its employees resist the new standardised processes and the firm's informal, relationship-driven culture clashes with the strategy. Management decides to reshape shared values, beliefs and norms so that they support the strategy. Which implementation issue is being addressed?

Management is addressing the fit between organisational culture and strategy. Culture comprises shared values, beliefs and norms, and when it clashes with a chosen strategy, employee resistance undermines implementation. Reshaping culture to support the strategy is therefore the issue, not resource allocation, budgeting or creating business units.

  1. AMatching organisational culture to strategyCorrect
  2. BResource allocation across divisions
  3. CDesigning a functional budget
  4. DSetting up a strategic business unit

Explanation

Shared values, beliefs and norms make up organisational culture. When culture conflicts with strategy, implementation suffers, so management must align culture with the strategy. Resource allocation, budgeting and SBU creation deal with funding and structure, not with values and norms.

Did you get it right without looking?

One question tells you little. A timed set on Strategy Implementation and Evaluation shows your real accuracy, how long you take and where you lose marks.

Practise Strategy Implementation and EvaluationFree diagnostic mock

More Strategy Implementation and Evaluation questions