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

Meera Auto reviews its strategy and checks whether the underlying assumptions about the market, such as expected demand growth and competitor behaviour, are still valid. Which strategic evaluation activity is this?

This is reviewing the bases of strategy. Strategic evaluation begins by examining whether the internal and external assumptions behind the strategy, such as demand growth and competitor behaviour, still hold. Measuring performance and taking corrective action are separate later steps.

  1. AMeasuring performance against targets
  2. BReviewing the bases of strategyCorrect
  3. CTaking corrective action
  4. DSetting new budgets

Explanation

Strategic evaluation includes reviewing the bases of strategy (internal and external factors and assumptions), measuring performance, and taking corrective action. Here, assumptions are being rechecked, so it is reviewing the bases of strategy.

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