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

Rohan Foods has set up a system in which top management reviews whether the assumptions on which its expansion strategy was based, such as the growth of ready-to-eat demand, remain valid as events unfold. This review is carried out continuously, not at the end of the period. Which type of strategic control is this?

This is premise control. It continuously tests whether the assumptions behind the strategy, such as expected demand growth, are still valid. Special alert control reacts to sudden events, implementation control tracks milestones and actions, and surveillance is general unfocused monitoring.

  1. APremise controlCorrect
  2. BSpecial alert control
  3. CImplementation control
  4. DStrategic surveillance

Explanation

Premise control checks systematically whether the assumptions underlying the strategy continue to hold. Special alert control responds to sudden unforeseen events, implementation control monitors the actions and milestones, and surveillance is a broad, unfocused monitoring of information. Here the focus is on assumptions, so premise control.

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