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CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management

Which of the following is a standard component of the strategic management process as taught in the ICAI syllabus?

The correct answer is strategy formulation, implementation and evaluation. Strategic management is a continuous process in which an organisation analyses its environment, chooses a strategy, puts it into action and then monitors results. The other options describe operational or compliance functions rather than strategy stages.

  1. AStrategy formulation, implementation and evaluationCorrect
  2. BBudget preparation, variance reporting and payroll
  3. CStatutory audit, tax filing and certification
  4. DProcurement, warehousing and dispatch

Explanation

Strategic management is commonly described as a process of strategic analysis, formulating strategy, implementing it and evaluating/controlling it. The other options list routine operational or compliance activities, not stages of the strategic management process.

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