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

Kaveri Foods, a packaged snacks company, found that its new regional expansion strategy failed because managers across plants resisted new processes, informal norms rewarded old routines, and no one explained the rationale. Which implementation issue is MOST directly highlighted?

The issue is a mismatch between strategy and organisational culture, with weak change management. Managers resisting new processes, old norms being rewarded and no explanation of the rationale show that culture and change were not managed, which derails implementation even when the strategy is sound.

  1. AMismatch between strategy and organisational culture, calling for managing changeCorrect
  2. BAbsence of a SWOT analysis before formulation
  3. CExcess reliance on financial ratios in evaluation
  4. DIncorrect choice of generic strategy

Explanation

Resistance, entrenched informal norms and poor communication point to a culture-strategy mismatch and weak change management. The case gives no information about SWOT, ratios or generic strategy choice, so those options are not supported.

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