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

Rohini Foods, a packaged snack maker, sets up a cross-functional task force within hours after a sudden government ban on a key preservative, to reassess its strategy immediately. A second team routinely scans trade journals and news with no specific purpose. Which pair correctly names the two controls?

The first team is exercising special alert control because it reacts quickly to a sudden, unforeseen event, the ban. The second team practises strategic surveillance, which is a general, unfocused monitoring of many sources for useful information. The reversed pairing and the other pairs do not fit.

  1. ASpecial alert control; strategic surveillanceCorrect
  2. BStrategic surveillance; special alert control
  3. CPremise control; implementation control
  4. DImplementation control; premise control

Explanation

A rapid, ad hoc reassessment triggered by an unexpected event is special alert control. A general, loosely structured scan of many sources for information of potential strategic value is strategic surveillance. The second option reverses them, and the others describe different controls.

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