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CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management

Bharat Foods Ltd's management revised its five-year plan midway after a regulatory change, while keeping its vision unchanged. Which statement about strategic management is most accurate here?

Strategic management is dynamic and iterative: strategies are adjusted through evaluation and feedback when the environment changes, while vision remains the anchor. Revising the plan after a regulatory change is a normal part of the process, not proof of failure or a conversion into an operational decision.

  1. AThe revision shows the strategy was wrongly formulated and strategic management failed
  2. BStrategic management is dynamic; strategies are adjusted through evaluation and feedback while the long-term vision stays as the anchorCorrect
  3. COnce a strategy is approved it must never be modified
  4. DChanging the plan converts a strategic decision into an operational one

Explanation

Strategic management is a continuous, iterative process with feedback, so strategies can be adapted to environmental change while the vision remains. Rigidity is not a feature, and revision does not make a decision operational.

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