CA Intermediate · Financial Management and Strategic Management · Strategy Implementation and Evaluation
Sundaram Retail Ltd. wants to evaluate strategy by checking whether the assumptions about the market on which the strategy was built remain valid, such as expected customer growth and competitor behaviour. Which strategic control is being used?
The firm is using premise control. This type of strategic control checks continuously whether the planning assumptions, such as market growth and competitor behaviour, are still valid. Implementation control tracks milestones, and special alert control responds to sudden unexpected events, so neither fits this situation.
- APremise controlCorrect
- BImplementation control
- CSpecial alert control
- DStrategic surveillance
Explanation
Premise control tests whether the assumptions underlying the strategy still hold. Implementation control monitors progress through milestones and projects. Special alert control is triggered by sudden unforeseen events. Strategic surveillance is a broad, unfocused monitoring of information.
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