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

Arjun Motors tracks a premium bike launch. Management notes that the assumption about fuel prices on which the strategy was based has changed sharply, and it asks whether the strategy itself needs revisiting. This type of strategic control, which continuously checks whether the premises underlying the strategy remain valid, is called:

This is premise control. It tests whether the planning assumptions, such as fuel prices here, still hold true. If they have changed significantly, the strategy may need revision. Implementation control tracks milestones, and special alert control responds to sudden unforeseen events.

  1. APremise controlCorrect
  2. BImplementation control
  3. CSpecial alert control
  4. DStrategic surveillance

Explanation

Premise control checks whether the assumptions made while planning the strategy are still valid. Implementation control assesses whether the plan's steps and milestones are on track. Special alert control is a rapid reassessment after an unforeseen event. Strategic surveillance is a broad, loosely focused monitoring of many information sources.

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