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CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management

Kaveri Foods, a Chennai packaged snack company, has a strategy team that has just finished a detailed analysis of the snack market and competitors. The managing director says the key decision now is to choose among entering the ready-to-eat meals segment, acquiring a regional rival, or staying put. Which phase of the strategic management process is the firm now in?

The firm is in strategy formulation. After analysing the environment, it must select among alternatives such as entering a new segment, acquiring a rival or staying put. Implementation and evaluation come later, once a choice is made and executed and results are available to measure.

  1. AStrategy formulationCorrect
  2. BStrategy implementation
  3. CStrategy evaluation
  4. DStrategy control

Explanation

Choosing between alternative courses of action after analysis is part of strategy formulation (strategic choice). Implementation would start only after a choice is made, putting resources and structures in place. Evaluation measures results of a strategy already being executed, so it does not fit.

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