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

Tarang Textiles, a Surat-based firm, has adopted a new growth strategy. Its CEO now wants to examine whether the existing reporting lines, division of tasks and coordination mechanisms fit the strategy before changing anything else. Which strategy implementation element is the CEO primarily reviewing?

The CEO is reviewing the organisational structure. Reporting relationships, task division and coordination mechanisms define how the firm is organised, and structure must fit the chosen strategy for it to be implemented effectively. The other options concern mission, competitor analysis or pricing, not the arrangement of authority.

  1. AOrganisational structureCorrect
  2. BCorporate mission statement
  3. CSWOT analysis of competitors
  4. DPricing of finished goods

Explanation

Reporting lines, division of tasks and coordination mechanisms together make up the organisational structure. Structure is one of the core implementation issues, since strategy must be supported by a suitable structure. The other options relate to formulation, analysis or operational pricing, not to implementation design.

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