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

Meera Foods, a Pune company, is told by consultants that strategic management is dynamic and continuous. Which of the following statements about strategic management is correct?

Strategic management includes strategy formulation, implementation and evaluation, and it is a continuous process that must be reviewed as the environment changes. It is not a one-time exercise, not limited to setting objectives, and not about daily operational problems, which are handled at lower levels.

  1. AOnce a strategy is formulated, it need not be revisited until the next decade
  2. BIt involves formulation, implementation and evaluation, and is a continuous process requiring review as the environment changesCorrect
  3. CIt concerns only top management's selection of objectives and excludes implementation
  4. DIt deals only with routine daily operational problems

Explanation

Strategic management covers formulation, implementation and evaluation, and needs ongoing review as the environment changes. Leaving strategy untouched ignores change, excluding implementation is incomplete, and routine operations belong to operational management rather than strategy.

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