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CMA Intermediate · Operations Management and Strategic Management · Formulation and Implementation of Strategy

In strategic management, which type of strategic control checks on a continuing basis whether the assumptions on which the strategy was framed, such as inflation or competitor behaviour, are still valid?

Premise control is the correct answer. It continuously checks whether the assumptions behind a strategy, such as inflation, demand or competitor behaviour, remain valid. If premises change, the strategy can be revised early, unlike implementation control, which only tracks action progress and milestones.

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

Explanation

Premise control tests the planning assumptions underlying a strategy against actual environmental developments. Implementation control instead monitors progress of action steps and milestones, while special alert control responds to sudden unforeseen events.

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