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

Sundaram Pharma monitors whether its basic premises about the regulatory environment, such as expected drug price controls, still hold true while its five-year strategy is being executed. Assumptions are checked continuously and the strategy is revised if they change. Which type of strategic control is this?

This is premise control. It continuously tests whether the assumptions on which the strategy was built, such as the regulatory environment, remain valid, and prompts revision if they change. Implementation control tracks milestones, and special alert control reacts to sudden events, so they do not match.

  1. APremise controlCorrect
  2. BImplementation control
  3. CSpecial alert control
  4. DStrategic surveillance

Explanation

Premise control checks whether the assumptions made while planning the strategy remain valid. Implementation control tracks milestones and resources. Special alert control responds to sudden unforeseen events, and strategic surveillance is a broad, unfocused monitoring of many information sources.

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