Question

If an organization tracks its strategy implementation, looks for problem areas, evaluates whether the problem areas indicate any weakness in the strategy, and makes any necessary changes, then it is using:

Answer 1

Question:

If an organization tracks its strategy implementation, looks for problem areas, evaluates whether the problem areas indicate any weakness in the strategy, and makes any necessary changes, then it is using:

A) Organizational controls

B) Tactical controls

C) Behavioral controls

D) Strategic controls

Answer:

The correct option is D) Strategic controls

Explanation:

Strategic controls refer to the process which helps one to easily and immediately change direction where if proposed strategies do not create anticipated results.  

For example, if a company X,  decides to reduce prices to drive sales and increase market share albeit, at a cost to its bottom line, where there is no increase in sales, an effective strategic control process would be to quickly reverse the situation to the status quo before implementation and thereafter go back to the drawing table to check why demand is low.

Demand could be weak because, quality of products, or services, do not meet consumer expectations, it could be that there is a violation of one of the 'P' of marketing such as Positioning.  

The head of strategy thus reviews and plans the next move to ensure that changes are effected.

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