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IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management

Ganga Finserv's board has approved a five-year strategy to become a leading provider of micro-insurance in rural India. The CEO now asks each department to turn this into specific actions, owners and measurable yearly targets. Which feature of strategic planning is the CEO addressing?

The CEO is addressing implementation. Once a strategy is approved, it must be translated into specific departmental actions, named owners and measurable yearly targets so that progress can be monitored, rather than analysing the environment or changing the mission.

  1. AConducting a PEST analysis of the external environment
  2. BRevising the mission statement to suit current staff
  3. CImplementation, by translating strategy into operational plans and measurable objectivesCorrect
  4. DDiversifying into unrelated businesses to reduce risk
  5. Winding up units that are not profitable this year

Explanation

After a strategy is chosen, it must be implemented by cascading it into departmental plans, responsibilities and measurable targets. PEST analysis is part of environmental analysis, which comes before choice. The CEO is not rewriting the mission, diversifying or closing units.

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