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

Arjun Motors measures performance using financial results, customer satisfaction, internal process efficiency, and employee learning and innovation, each with targets and indicators. Which strategic evaluation tool is Arjun Motors using?

Arjun Motors is using the Balanced Scorecard. It evaluates strategy through four perspectives: financial, customer, internal processes, and learning and growth. The other tools analyse a business portfolio, internal activities or industry competition rather than measuring performance across these four dimensions.

  1. ABalanced ScorecardCorrect
  2. BBCG Matrix
  3. CValue chain analysis
  4. DPorter's Five Forces

Explanation

The Balanced Scorecard assesses performance across four perspectives: financial, customer, internal business process, and learning and growth. BCG matrix classifies business portfolios, value chain examines activities, and Five Forces analyses industry competition.

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