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

Kaveri Foods Pvt. Ltd. is expanding into packaged snacks. The CEO appoints a new head for the unit, allocates a separate budget and builds a team before launch, but has not yet decided how to overcome likely employee resistance. Under the strategy implementation process, which activity is the CEO currently performing in the budget allocation step?

The activity is resource allocation. Providing budget, people and leadership to a new strategy is how strategy gets funded and put into action. Strategic control monitors results later, environmental scanning belongs to the analysis stage, and restructuring changes organisational design rather than assigning resources.

  1. AResource allocationCorrect
  2. BStrategic control
  3. CEnvironmental scanning
  4. DCorporate restructuring

Explanation

Assigning a budget, people and a unit head to support a chosen strategy is resource allocation, a key implementation activity. Strategic control is a monitoring activity that occurs after implementation starts. Environmental scanning is part of analysis, and restructuring changes the organisation's structure rather than funding a strategy.

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