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

Kaveri Auto Components has an excellent strategy to launch electric vehicle parts, but the plant managers are not aligned and each department pursues its own goals. The CEO decides to redesign reporting lines and define who takes decisions on product, production and marketing. Which implementation element is the CEO mainly addressing?

The CEO is addressing organisational structure. Redefining reporting lines and decision rights is about how tasks, authority and responsibilities are arranged to support the strategy. Culture deals with values, and strategic control deals with monitoring results, so they are not the central action here.

  1. AOrganisational structureCorrect
  2. BCorporate culture
  3. CStrategic control
  4. DEnvironmental appraisal

Explanation

Redesigning reporting lines and defining decision rights is a structural change. Culture concerns shared values and beliefs, and strategic control concerns monitoring outcomes, so neither is the main action described. Environmental appraisal belongs to formulation.

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