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

Kaveri Foods, an Indian packaged snacks company, forms a separate team to study whether to enter the ready-to-eat meals market, and the team prepares a plan allocating funds, people and timelines. Next, the board approves the plan and managers begin executing it. Which sequence correctly names the stages in the strategic management process?

The correct sequence is strategy formulation followed by strategy implementation. Studying market entry and drawing up a plan is formulation, while approving the plan and executing it through resources and people is implementation. Evaluation would follow later to monitor performance against the plan.

  1. AStrategy formulation followed by strategy implementationCorrect
  2. BStrategy implementation followed by strategy formulation
  3. CStrategy evaluation followed by strategy formulation
  4. DStrategy implementation followed by environmental scanning

Explanation

Studying options and planning is strategy formulation (including choice). Approving and executing the plan with resources is strategy implementation. The sequence is therefore formulation then implementation; evaluation would come afterwards to monitor results.

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