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

Himalaya Foods Ltd. launched a premium health-snack range assuming that the consumer shift to organic products would continue at 15% yearly growth. Every quarter, the strategy team now checks whether this assumption about the market still holds, since the whole plan depends on it. Which type of strategic control is this?

This is premise control. It regularly tests whether the key assumptions behind the strategy, here continued 15% growth in organic consumption, are still valid. Implementation control tracks milestones, special alert control reacts to sudden events, and strategic surveillance is general, unfocused monitoring.

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

Explanation

Premise control checks whether the assumptions on which the strategy was built remain valid. Implementation control monitors milestones and resource use. Special alert control is triggered by sudden unforeseen events. Strategic surveillance is a broad, unfocused monitoring of many information sources, not a check on a specific assumption.

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