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

Sundaram Textiles Ltd. has decided to enter technical textiles. The CEO first lists the activities, then groups them into tasks, assigns responsibility to departments, and sets deadlines for each. Which step of strategy implementation is the CEO mainly performing?

The CEO is carrying out project and procedural implementation. Converting a chosen strategy into specific activities, tasks, departmental responsibilities and deadlines is how the strategy is put into action. It is not formulation, premise control or divestment, which deal with choosing, monitoring or restructuring.

  1. AStrategy formulation through environmental scanning
  2. BProject implementation and procedural planning to put the strategy into actionCorrect
  3. CStrategic control through premise checking
  4. DCorporate restructuring through divestment

Explanation

Breaking a strategy into activities, tasks, responsibilities and timelines is the work of project and procedural implementation. Premise control belongs to evaluation and does not involve assigning tasks. Formulation precedes implementation and concerns choosing the strategy, not executing it.

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