XYZ Ltd. recently formulated an international expansion strategy and implemented the new market expansion strategy with the aim of increasing its…
CA Intermediate · Financial Management and Strategic Management · PYQS · September 2025
XYZ Ltd. recently formulated an international expansion strategy and implemented the new market expansion strategy with the aim of increasing its presence in international markets. However, six months into the implementation, sales figures are not meeting projections. Improper use of resources, undesirable tendencies of the workers, non-conformance to norms and standards and unforeseen regulatory challenges have emerged. Additionally, competitor activity has intensified, affecting market share. As a strategic decision-maker, which function of strategic management process would you perform? What specific elements of that function would you implement to overcome these issues and ensure that planned actions translate into successful achievement of goals and results?
Suggested Answer and Working Notes:
In the given case, XYZ Ltd. should perform the Strategic Control function of the strategic management process. Strategic control ensures that what is planned is translated into results by regulating behaviour, placing curbs on undesirable tendencies, ensuring conformance to norms and standards, monitoring proper use of resources, and coping with changes in the environment. The process of control involves the following elements: Objectives of the business system operationalized into measurable and controllable standards. Monitoring and measuring performance of the system. Comparison of results with standards, detecting deviations and gaining insights on standards themselves. Feedback and corrective action to make desired changes and keep the system on course. By applying strategic control and its elements XYZ Ltd. can overcome deviations and ensure successful achievement of its international expansion goals.
Topics: Part-A: Financial Management
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