Skip to content

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

Anand Auto Components, Nashik, has a mission statement, annual targets and a long-term plan. Its managers meet each quarter, compare actual results with targets, find that EV-component sales are lagging because of supplier delays, and revise the sourcing approach. Placing these activities in the strategic management process, which choice is accurate?

Setting the mission and targets is strategic intent, while the quarterly comparison of actual results with targets and the sourcing revision is strategy evaluation and control, which feeds back into formulation or implementation. It is not formulation of direction or mere scanning.

  1. ASetting the mission and targets is strategic intent, and the quarterly comparison and sourcing revision is strategy evaluation and control that can feed back into formulationCorrect
  2. BThe quarterly comparison is strategy formulation, because it sets the direction of the firm
  3. CRevising sourcing is strategic intent, because it alters the mission
  4. DThe quarterly comparison is environmental scanning only, because it looks at suppliers

Explanation

Mission and targets express strategic intent. Comparing performance against targets and correcting deviations is evaluation and control, and its findings can feed back into formulation or implementation. Treating it as formulation or only scanning misplaces it, and sourcing changes do not alter the mission.

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