Skip to content

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

Meridian Pharma Ltd. has a stated strategy of cost leadership, yet its newly appointed head of HR rewards managers solely for launching premium-priced products, and the budget process funds expensive research projects regardless of cost impact. Several managers are confused about priorities. Which implementation issue does this scenario most clearly illustrate?

The scenario shows a lack of fit between strategy and its supporting systems. The stated strategy is cost leadership, but rewards and budget allocation favour premium products and costly research. Such misalignment confuses managers and undermines implementation, even though the strategy itself may be sound.

  1. ALack of fit between strategy and supporting systems such as rewards and resource allocationCorrect
  2. BExcess of environmental opportunities
  3. CFailure of strategy formulation due to wrong mission
  4. DOver-reliance on benchmarking

Explanation

Rewards and budgeting support premium launches, which contradicts a cost leadership strategy. This is misalignment between strategy and supporting systems. The mission is not said to be wrong, no environment issue is described, and benchmarking is not mentioned.

Did you get it right without looking?

One question tells you little. A timed set on Strategy Implementation and Evaluation shows your real accuracy, how long you take and where you lose marks.

Practise Strategy Implementation and EvaluationFree diagnostic mock

More Strategy Implementation and Evaluation questions