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

Meera Retail Ltd. compares its actual performance with planned targets, finds that sales growth is 4% against a target of 10%, and then analyses whether the cause is a faulty assumption, poor execution or an external change, before deciding corrective action. This activity is best described as:

This is strategy evaluation through measuring performance and taking corrective action. The firm compares actual results with targets, analyses the cause of the variance and then decides remedial steps. Premises control, surveillance and special alert control each cover only a narrower part of this process.

  1. APremises control
  2. BStrategic surveillance
  3. CStrategy evaluation through measuring performance and taking corrective actionCorrect
  4. DSpecial alert control

Explanation

Comparing actual results with targets, analysing variances and taking corrective action are the basic steps of strategy evaluation. Premises control checks assumptions only, surveillance is broad unfocused monitoring, and special alert control reacts to sudden unforeseen events, so none fits fully.

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