CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management
Meenakshi Foods Ltd's top management studies its industry, sets a mission, defines long-term objectives and chooses strategic alternatives. Later it allocates resources, designs structure and then measures performance against targets, taking corrective steps where results fall short. In the strategic management process, the last mentioned activity of measuring results and taking corrective action is called:
Measuring performance against targets and taking corrective action is strategic evaluation and control. It is the final stage of the strategic management process, following formulation and implementation. Environmental scanning and mission setting belong to the early formulation phase and do not involve comparing results with targets.
- AStrategic evaluation and controlCorrect
- BStrategy formulation
- CEnvironmental scanning
- DMission setting
Explanation
The process runs through formulation (mission, objectives, choice), implementation (resources, structure) and evaluation and control, where actual performance is compared with targets and corrective steps are taken. Scanning and mission setting occur at the start, so they do not describe the final activity.
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