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

Rohan Auto Components Ltd. reviews its strategy continuously. Management tracks a few key assumptions about government EV policy and, if they prove wrong, revises the strategy. This tracking of the premises on which the strategy was built is known as:

This is premise control. It systematically checks whether the assumptions on which the strategy was formulated, such as government EV policy, still hold. If the premises prove invalid, the strategy is revised. Other types of strategic control monitor execution or sudden events instead.

  1. AImplementation control
  2. BStrategic surveillance
  3. CPremise controlCorrect
  4. DSpecial alert control

Explanation

Premise control checks whether the assumptions made while planning remain valid. Implementation control monitors the execution of steps and milestones. Strategic surveillance is a broad, unfocused monitoring of events, and special alert control responds to sudden unforeseen events.

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