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

Kaveri Textiles, a Coimbatore-based firm, finds that its new low-cost denim strategy is failing because the production, marketing and finance heads each interpret targets differently and no one coordinates their efforts. Which strategy implementation task is most directly missing?

The missing task is building an organisational structure and coordination mechanism linking activities to strategy. The functional heads interpret targets differently and do not coordinate, which is an implementation failure of structure and integration, not a problem of environmental analysis, diversification or divestment.

  1. ABuilding an organisational structure and coordination mechanism that links activities to strategyCorrect
  2. BConducting a SWOT analysis of the external environment
  3. CDiversifying into unrelated businesses
  4. DDivesting the denim division

Explanation

Implementation requires structure and coordination so that functional heads work towards common strategic goals. The problem described is fragmented effort among functions, not environmental scanning or portfolio change. Hence building structure and coordination is the missing task.

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