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

Nirmal Textiles, a mid-sized Indian firm, has decided to enter a new export market. Its board now wants to convert the chosen strategy into action by allocating resources, setting up the organisation structure and assigning responsibilities. Which stage of the strategic management process does this describe?

This is strategy implementation. After a strategy has been chosen, the firm must convert it into action by allocating resources, building the structure and assigning responsibilities. Formulation is about deciding what to do, while evaluation measures performance afterwards, so neither fits the activities described.

  1. AStrategy formulation
  2. BStrategy implementationCorrect
  3. CStrategy evaluation
  4. DEnvironmental scanning

Explanation

Putting a chosen strategy into action through resource allocation, structure and assignment of responsibilities is strategy implementation. Formulation ends once the strategy is chosen. Evaluation comes later and checks results against targets.

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