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Chapter - 5 Strategy Implementation and
Evaluation
Q-1. Delta Co. is an organization specializing in Information Technology enabled Services (ITeS) and
Communications business. Last year, the organization had successfully integrated an Artificial Intelligence (AI)
tool named Zeus into the existing ERP system. The AI tool, using Deep Learning technique provided a digital
leap transformation in various business processes and operations. It has significantly diminished the role
played by specialist managers of the middle management. This technological tool in addition to saving
organizational costs by replacing many tasks of the middle management has also served as a link between top
and bottom levels in the organization and assistsin quick decision making. The skewed middle level managers
now perform cross-functional duties. Which type of organizational structure is the company transitioning
into?
Ans. The Delta company is transitioning into the hourglass organization structure because it has used technological
tools to transform various business processes and operations and has significantly diminished the role played
by specialist managers of the middle management. The technological tool in addition to saving organizational
costs by replacing many tasks of the middle management has also served as a link between top and bottom
levels in the organization and assists in faster decision [Link] skewed middle level managers now perform
cross−functional duties. All these factors indicate towards hourglass organization structure.
Q-2. ABC Ltd. is a shoe manufacturing company. The strategic manager of ABC ltd. is Ms. Suman. Ms. Sumanhired
the best designers she could find online for her ethnic shoe brand but later she found that the designers were
better at leather designs. Identify and explain linkage in the given situation as she had to change her strategy
basis the actual resources she had?
Ans. The strategy formulation and strategy implementation are intertwined and linked with each other. Two types of
linkages exist between these two phases of strategic management. The forward linkages deal with the impact of
strategy formulation on strategy implementation while the backward linkages are concerned with the impact in
the opposite direction.
In the given situation Ms. Suman has to follow Backward Linkages as she had to change her strategy basis the
actual resources she had. While dealing with strategic choice, remember that past strategic actions also determine
the choice of strategy. Organizations tend to adopt those strategies which can be implemented with the help of
the present structure of resources combined with some additional efforts. Such incremental changes, over a
period of time, take the organization from where it is to where it wishes to be.
Q-3. Explain the steps for initiating strategic change.
Ans. The changes in the environmental forces often require businesses to make modifications in their existing
strategies and bring out new strategies. Strategic change is a complex process that involves a corporate strategy
focused on new markets, products, services and new ways of doing business.
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Three steps for initiating strategic change are:
(i) Recognize the need for change 3 The first step is to diagnose the which facets of the present corporate culture
are strategy supportive and which are not.
(ii) Create a shared vision to manage change 3 Objectives of both individuals and organization should coincide.
There should be no conflict between them. This is possible only if the management and the organization
members follow a shared vision.
(iii) Institutionalize the change 3 This is an action stage which requires the implementation of the changed strategy.
Creating and sustaining a different attitude towards change is essential to ensure that the firm does not slip
back into old ways of doing things.
Q-4. Distinguish between Strategy Formulation and Strategy Implementation.
Ans. Although inextricably linked, strategy implementation is fundamentally different from strategyformulation in
the following ways:
Strategy Formulation Strategy Implementation
Strategy formulation focuses on Strategy implementation focuses
effectiveness. on efficiency.
Strategy formulation is primarily an Strategy implementation is primarily an
intellectual process. operational process.
Strategy formulation requires conceptual Strategy implementation requires
intuitive and analyticalskills. motivation andleadership skills.
Strategy formulation requires Strategy implementation requires
coordination among the executives coordination among the executives at
at the top level. the middle and lower levels.
Q-5. Glassware Ltd. is about to go through a significant restructuring. The strategic change involves moving from a
decentralized to a centralized structure. This will help Glassware avoid duplication of support activities and
lower its costs.
The management have held the first staff briefing in which they went to great lengths to explain that the
change was necessary to equip the company to face future competitive challenges. Identify and explain the
current stage of Glassware Ltd. from the Lewin’s three-stage model of change?
Ans. Glassware Ltd. is currently in the unfreezing stage, where management is attempting to explain the need for
change in an attempt to maximize buy−in by employees and reduce the amount of resistance.
Unfreezing the situation: The process of unfreezing simply makes the individuals aware of the necessity for
change and prepares them for such a change. Lewin proposes that the changes shouldnot come as a surprise
to the members of the organization. Sudden and unannounced change would be socially destructive and morale
lowering. The management must pave the way for the change by first unfreezing the situation, so that members
would be willing and ready to accept the change.
Unfreezing is the process of breaking down the old attitudes and behaviors, customs and traditions so that they
start with a clean slate. This can be achieved by making announcements, holding meetings and promoting the
new ideas throughout the organization.
Q-6. Why is Strategic Control important for organizations? Discuss briefly 4 types of strategic control that can be
implemented to achieve the enterprise goals.
Ans. Importance of strategic control: Strategic control is an important process that keeps organization on its desired
path. It involves evaluating strategy as it is formulated and implemented. It is directed towards identifying
problems and changes in premises and making necessary adjustments. Strategic control focuses on the dual
questions of whether: (1) the strategy is being implemented as planned; and (2) the results produced by the
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strategy are those intended.
There are four types of strategic control:
• Premise control: A strategy is formed on the basis of certain assumptions or premises about the environment.
Premise control is a tool for systematic and continuous monitoring of the environment to verify the validity
and accuracy of the premises on which the strategy has been built.
• Strategic surveillance: Strategic surveillance is unfocussed. It involves general monitoring of various sources
of information to uncover unanticipated information having a bearing on the organizational strategy.
• Special alert control: At times, unexpected events may force organizations to reconsider their strategy. Sudden
changes in government, natural calamities, unexpected merger/acquisition by competitors, industrial disasters
and other such events may trigger an immediate and intense review of strategy.
• Implementation control: Managers implement strategy by converting major plans into concrete, sequential
actions that form incremental steps. Implementation control is directed towards assessing the need for
changes in the overall strategy in light of unfolding events and results.
Q-7. Sanya Private Limited is an automobile company. For the past few years, it has been observed that the
progress of the company has become stagnant. When scrutinized, it was found that the planning department
was performing fairly well but the plans could not be implemented due to improper use of resources,
undesirable tendencies of workers and non-conformance to norms and standards. You are hired as a Strategic
Manager. Suggest the elements of process of control to overcome the problem.
Ans. Sanya Private Limited deteriorating performance due to poor implementation of plans that is improper use of
resources, undesirable tendencies of the workers, and non−conformance to norms and standards, all point
towards weak controls in the organization. Implementation of plans cannot assure results unless strong and
sufficient controls are put in place. The management of the company should focus diligently on developing
controls especially in the identified problem areas.
The process of control has the following elements:
(a) Objectives of the business system which could be operationalized into measurable andcontrollable
standards.
(b) A mechanism for monitoring and measuring the performance of the system.
(c) A mechanism (i) for comparing the actual results with reference to the standards (ii) for detectingdeviations
from standards and (iii) for learning new insights on standards themselves.
(d) A mechanism for feeding back corrective and adaptive information and instructions to the system, for
effecting the desired changes to set right the system to keep it on course.
Above elements of control would ensure a proper check on improper use of resources, undesirable tendencies
of the workers, and non−conformance to norms and standards and ensure a result-oriented implementation of
plans.
Q-8. How can a corporate culture be both strength and weakness of an organization?
Ans. The most important phenomenon which often distinguishes one organization with another is its corporate
culture. Corporate culture refers to a company values, beliefs, business principles, traditions, and ways of
operating and internal work environment. Every corporation has a culture that exerts powerful influences on the
behavior of managers.
(i) As a strength: Culture can facilitate communication, decision making and control and instill cooperation and
commitment. An organization culture could be strong and cohesive when it conducts its business according to
clear and explicit set of principles and values, which the management devotes considerable time to
communicating to employees and which values are shared widely across the organization.
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(ii) As a weakness: Culture, as a weakness can obstruct the smooth implementation of strategy by creating
resistance to change. An organization’s culture could be characterized as weak when manysub−cultures exists,
few values and behavioral norms are shared and traditions are rare. In such organizations, employees do not
have a sense of commitment, loyalty and sense of identity.
Q-9. Surah Prakash and Chandler Prakash are two brothers engaged in the business of spices. Both have different
approaches to management. Surah Prakash prefers the conventional and formal approach in which authority
is used for explicit rewards and punishment. While, on the other hand, Chandler Prakash believes in
democratic participative management approach, involving employees to give their best. Analyze the
leadership style followed by Surah Prakash and Chandler Prakash.
Ans. Surah Prakash is a follower of transactional leadership style that focuses on designing systems and controlling the
organization’s activities. Such a leader believes in using authority of its office to exchangerewards, such as pay and
status. They prefer a more formalized approach to motivation, setting clear goalswith explicit rewards or penalties
for achievement or non−achievement. Transactional leaders try to build on the existing culture and enhance
current practices. The style is better suited in persuading people to work efficiently and run operations smoothly.
On the other hand, Chandler Prakash is a follower of transformational leadership style. The style uses charisma
and enthusiasm to inspire people to exert them for the good of the organization. Transformational leaders offer
excitement, vision, intellect teal stimulation and personal satisfaction. Theyinspire involvement in a mission, giving
followers a ‘’dream’’ or ‘’vision’’ of a higher calling so as to elicit more dramatic changes in organizational
performance. Such a leadership motivates followers to do more than originally affected to do by stretching their
abilities and increasing their self −confidence, and also promoteinnovation throughout the organization.
Q-10. Strategic Planning and Operational Planning.
Ans.
Strategic planning Operational planning
Strategic planning shapes the organization Operational planning deals with current
and its resources. deployment of resources.
Strategic planning assesses the impact of Operational planning develops tactics
environmental variables. rather than strategy.
Strategic planning takes a holistic view of the Operational planning projects
organization. current operations into the future.
Strategic planning develops overall objectives Operational planning makes
and strategies. modifications to the business functions
but not fundamental changes.
Strategic planning is concerned with the Operational planning is concerned with
long−term success of the organization. the short−term success of the
organization.
Strategic planning is a senior management Operational planning is the responsibility
responsibility. of functional managers.
Q-11. What is implementation control? Discuss its basic forms.
Ans. Implementation Control: Managers implement strategy by converting major plans into concrete,
sequential actions that form incremental steps. Implementation control is directed towards assessing the need
for changes in the overall strategy in light of unfolding events and results associated with incremental steps and
actions.
Strategic implementation control is not a replacement to operational control. Strategic implementationcontrol,
unlike operational controls continuously monitors the basic direction of the strategy. The two basic forms of
implementation control are:
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(i) Monitoring strategic thrusts: Monitoring strategic thrusts help managers to determine whether the overall
strategy is progressing as desired or whether there is need for readjustments.
(ii) Milestone Reviews: All key activities necessary to implement strategy are segregated in terms of time, events or
major resource allocation. It normally involves a complete reassessment of the strategy. It also assesses the
need to continue or refocus the direction of an organization.
Q-12. Distinguish between Operational Control and Management Control.
Ans. Differences between Operational Control and Management Control are as under:
(i) The thrust of operational control is on individual tasks or transactions as against total or more aggregative
management functions. When compared with operational, management control is more inclusive and more
aggregative, in the sense of embracing the integrated activities of a complete department, division or even entire
organization, instead or mere narrowly circumscribed activities of sub−units. For example, procuring specific
items for inventory is a matter of operational control, in contrast to inventory management as a whole.
(ii) Many of the control systems in organizations are operational and mechanistic in nature. A set of standards, plans
and instructions are formulated. On the other hand, the basic purpose of management control is the
achievement of enterprise goals 3 short range and long range 3 in an effective and efficient manner.
Q-13. To convert strategic plans into actions and results, a manager must be able to direct organizational change,
motivate people, build and strengthen company competencies and competitive capabilities, create a strategy-
supportive work climate, and meet or beat performance targets. Explain the principal aspects of strategy-
execution process.
OR
Strategy execution is an operations-oriented activity which involves a good fit between strategy and
organizational capabilities, structure, climate & culture. Enumerate the principal aspects of strategy execution
process which are used in most of the situations.
OR
Describe the principal aspects of strategy-execution process, which are included in most situations.
OR
What are the important aspects of the process of implementation of strategy?
Ans. In most situations, strategy−execution process includes the following principal aspects:
• Developing budgets that steer ample resources into those activities critical to strategic success.
• Staffing the organization with the needed skills and expertise, consciously building and strengthening
strategy−supportive competencies and competitive capabilities, and organizing the work effort.
• Ensuring that policies and operating procedures facilitate rather than impede effective execution.
• Using the best−known practices to perform core business activities and pushing for continuous improvement.
• Installing information and operating systems that enable company personnel to better carry out their
strategic roles day in and day out.
• Motivating people to pursue the target objectives energetically
• Creating a company culture and work climate conducive to successful strategy implementation andexecution.
• Exerting the internal leadership needed to drive implementation forward and keep improving strategy
execution. When the organization encounters stumbling blocks or weaknesses, management has to see that
they are addressed and rectified quickly. Good strategy execution involves creating strong fits= between
strategy and organizational capabilities, between strategy and the reward structure, between strategy and
internal operating systems, and between strategy and the organization work climate and culture.
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Q-14. Mathew & Sons Ltd. is a diversified business entity having business operations across the globe. Presently,
Mr. Mathew is the CEO of Mathew & Sons Ltd. He is going to retire in next 4 months, so he has decided to
change the company leadership and hand over the pedals to his elder son Marshal. Marshal is a highly
educated with an engineering degree from USA. However, being very young he is not clear about his role and
responsibilities. In your view, what are the responsibilities of Marshal as CEO of Mathew & Sons Ltd.
Ans. Marshal, to be an effective strategic leader of Mathew & Sons Ltd. must be able to deal with the diverseand
cognitively complex competitive situations that are characteristic of today competitive landscape.
He has several responsibilities, including the following:
• Making strategic decisions.
• Formulating policies and action plans to implement strategic decision.
• Ensuring effective communication in the organization.
• Managing human capital (perhaps the most critical of the strategic leader skills).
• Managing change in the organization.
• Creating and sustaining strong corporate culture.
• Sustaining high performance over time.
Q-15. What is a strategic business unit? What are its advantages?
Ans. A strategic business unit (SBU) is any part of a business organization which is treated separately for strategic
management purposes. The concept of SBU is helpful in creating an SBU organizational structure. It is discrete
element of the business serving product markets with readily identifiable competitors and for which strategic
planning can be concluded. It is created by adding another level of management in a divisional structure after the
divisions have been grouped under a divisional top management authority based on the common strategic
interests.
Advantages of SBU are:
• Establishing coordination between divisions having common strategic interests.
• Facilitates strategic management and control on large and diverse organizations.
• Fixes accountabilities at the level of distinct business units.
• Allows strategic planning to be done at the most relevant level within the total enterprise.
• Makes the task of strategic review by top executives more objective and more effective.
• Helps allocate corporate resources to areas with greatest growth opportunities.
Q-16. How can management communicate that it is committed to creating a new culture assuming that the old
culture was problematic and not aligned with the company strategy?
OR
You are appointed as a manager of a company where you find that the company's culture is out of syncwith
what is needed for strategic success. Discuss steps you would initiate to tackle the problem.
Ans. Corporate culture refers to company values, beliefs, business principles, traditions, ways of operating and
internal work environment. Changing problem cultures is very difficult because of deeply held values and habits.
It takes concerted management action over a period of time to replace an unhealthy culture with a healthy
culture or to root out certain unwanted cultural obstacles and in still ones that are more strategy−supportive.
• The first step is to diagnose which facets of the present culture are strategy supportive and which are not.
• Then, managers have to talk openly and forthrightly to all concerned about those aspects of the culture that
have to be changed.
• The talk has to be followed swiftly by visible, aggressive actions to modify the culture −actions that everyone
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will understand are intended to establish a new culture more in tune with the strategy.
Management through communication has to create a shared vision to manage changes. The menu of
culture−changing actions includes revising policies and procedures, altering incentive compensation, shifting
budgetary allocations for substantial resources to new strategy projects, recruiting and hiring new managers and
employees, replacing key executives, communication on need and benefit to employees and so on.
Q-17. Distinguish between the following:
Transformational leadership and Transactional leadership.
Ans. Following are the differences between transformational and transactional leadership:
1. Transformational leadership style uses charisma and enthusiasm to inspire people to exert them for the good
of organization. Transactional leadership style uses the authority of its office to exchange rewards such as
pay, status symbols etc.
2. Transformational leadership style may be appropriate in turbulent environment, in industries at the very
start or end of their cycles, poorly performing organizations, when there is a need to inspire a company to
embrace major changes. Transactional leadership style can be appropriatein static environment, in growing
or mature industries and in organizations that are performing well.
3. Transformational leaders inspire employees by offering excitement, vision, intellectual stimulation and
personal satisfaction. Transactional leaders prefer a more formalized approach to motivation, setting clear
goals with explicit rewards or penalties for achievement and non− achievement. Transactional leaders focus
mainly to build on existing culture and enhance current practices.
Q-18. Ramesh is owner of a popular brand of Breads. Yashpal, his son after completing Chartered Accountancystarted
assisting his father in running of business. The approaches followed by father and son in management were
very different. While Ramesh preferred to use authority and having a formal system of defining goals and
motivation with explicit rewards and punishments, Yashpal believed in involving employees and generating
enthusiasm to inspire people to deliver in the organization. Discuss the difference in leadership style of father
and son.
Ans. Ramesh is a follower of transactional leadership style that focuses on designing systems and controlling the
organization activities. Such a leader believes in using authority of its office to exchange rewards, such as pay
and status. They prefer a more formalized approach to motivation, setting clear goals with explicit rewards or
penalties for achievement or non−achievement. Transactional leaders try to build on the existing culture and
enhance current practices. The style is better suited in persuading people to work efficiently and run operations
smoothly.
On the other hand, Yashpal is follower of transformational leadership style. The style uses charisma and
enthusiasm to inspire people to exert them for the good of the organization. Transformational leaders offer
excitement, vision, intellectual stimulation and personal satisfaction. They inspire involvement in a mission,
giving followers a dream or vision of a higher calling so as to elicit more dramatic changes in organizational
performance. Such a leadership motivates followers to do more than originally affected to do by stretching their
abilities and increasing their self−confidence, and also promote innovation throughout the organization.
Q-19. What is strategic control? Briefly explain the different types of strategic control?
Ans. Strategic Control focuses on the dual questions of whether: (1) the strategy is being implemented as planned;
and (2) the results produced by the strategy are those intended.
There are four types of strategic control:
• Premise control: A strategy is formed on the basis of certain assumptions or premises about the environment.
Premise control is a tool for systematic and continuous monitoring of the environment to verify the validity and
accuracy of the premises on which the strategy has been built.
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• Strategic surveillance: Strategic surveillance is unfocussed. It involves general monitoring of various sources of
information to uncover unanticipated information having a bearing on the organizational strategy.
• Special alert control: At times, unexpected events may force organizations to reconsider their strategy. Sudden
changes in government, natural calamities, unexpected merger/acquisition by competitors, industrial disasters
and other such events may trigger an immediate and intense review of strategy.
• Implementation control: Managers implement strategy by converting major plans into concrete, sequential
actions that form incremental steps. Implementation control is directed towards assessing the need for changes
in the overall strategy in light of unfolding events and results.
Q-20. 'A strategy-supportive culture promotes good strategy execution.' - Explain.
Ans. Strong cultures promote good strategy execution when there fit and hurt execution when there negligible fit. A
culture grounded in values, practices, and behavioral norms that match what is needed for good strategy
execution helps energize people throughout the organization to do their jobs in a strategy−supportive manner. A
culture built around such business principles as listening to customers, encouraging employees to take pride in
their work, and giving employees a high degree of decision− making responsibility. This is very conducive to
successful execution of a strategy of delivering superior customer service.
A work environment where the culture matches the conditions for good strategy execution provides a system of
informal rules and peer pressure regarding how to conduct business internally and how to go about doing one
job.
A strong strategy−supportive culture makes employees feel genuinely better about their jobs and work
environment and the merits of what the company is trying to accomplish. Employees are stimulated to take on
the challenge of realizing the organizational vision, do their jobs competently and with enthusiasm, and
collaborate with others.
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