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

Meera Pharma Ltd. launched a five-year plan to enter regulated export markets. In year two, a surprise import ban by a major destination country forces top management to immediately reassess the strategy and hold a quick review of the plan. A separate team continues to monitor whether the plan's milestones, such as plant approvals due each half-year, are being met. Which pair correctly identifies the two controls at work?

The import ban response is special alert control, which triggers a rapid reassessment after a sudden unforeseen event. The half-yearly plant approval tracking is implementation control, which monitors milestones and strategic thrusts. Premise control and surveillance do not match these two specific activities.

  1. ASpecial alert control for the import ban response; implementation control for the milestone monitoringCorrect
  2. BPremise control for the import ban response; special alert control for the milestone monitoring
  3. CStrategic surveillance for the import ban response; premise control for the milestone monitoring
  4. DImplementation control for the import ban response; strategic surveillance for the milestone monitoring

Explanation

A sudden, unforeseen event prompting a rapid reassessment is special alert control. Tracking whether planned milestones are achieved is implementation control, which includes monitoring strategic thrusts and milestone reviews. The option pairing premise control with the ban is wrong because premise control checks stated assumptions periodically, not a sudden shock.

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