ASSOCIATION OF ACCOUNTING TECHNICIANS

OF SRI LANKA

CURRICULUM 2020

PILOT PAPER

Level II

204 - BUSINESS MANAGEMENT (BMA)

A publication of the Education and Training Division

 Association of Accounting Technicians of Sri Lanka
204 - Business Management (BMA)
Pilot Paper

Instructions to Candidates (Please Read Carefully)

Time Allowed:
Reading : 15 Minutes
Writing : 03 Hours

Structure of Question Paper:

 This paper consists of three Sections; Section A, Section B and Section C.

 All the questions of Section A, Section B and Section C should be answered.

Marks:

 Allocation of marks for each section:

Section Marks
Section A 25
Section B 50
Section C 25
Total 100

 Marks for each question are shown with the question.

 The pass mark for this paper is 50%.

Answers:

 All answers should be written in the booklet provided, answers written on the question paper will not be
considered for marking.
 Begin your answer of each question on a new page.
 All workings should be clearly shown.
 Do not write on the Margins.

Answer Booklets:

 Instructions are shown on the front cover of each answer booklet.

Calculators:

 Candidates may use any calculator except those with the facility for symbolic algebra and differentiation.
No programmable calculators are allowed.

Attached:

 Action verb checklist – Each question will begin with an action verb (excluding OTQ's).
Students should answer the questions based on the definition of the verb given in the checklist.

AAT Sri Lanka Business Management 1|Page

Objective Test Questions (OTQs)
Fifteen compulsory questions SECTION A
(Total 25 marks)

Question 01

Select the most correct answer for questions No. 1.1 to No. 1.5. Write the number of the selected
answer in your answer booklet with the number assigned to the question.

1.1 Which one of the following is an example for a top level management position in an organization?

(1) Finance Manager. (2) Accountant.

(3) Managing Director. (4) Supervisor.

1.2 The ratio between the input and output of an organization during a specific period of time is:

(1) Production. (2) Efficiency. (3) Effectiveness. (4) Productivity.

1.3 Which one of the following is not a function of the management process?

(1) Organizing. (2) Leading. (3) Controlling. (4) Decision making.

1.4 Which one of the following statements does not describe a characteristic of an effective leader?

(1) Leaders have the potential to influence the behavior of others.

(2) Leaders are capable of developing a future vision.

(3) Leaders perform all four functions of management.

(4) Leaders are able to motivate the organization’s members to achieve the vision.

1.5 Which one of the following statements correctly explains ‘Referent Power’ of leaders?

(1) This power comes through the individual’s capacity to impact others through risks,
punishments or penalties.

(2) This power arises from the ability of the individual to impact the award of rewards in an
organization.

(3) This power arises from the position an individual holds in an organization’s hierarchy.

(4) This power arises from the social relationships that an individual cultivates with other
individuals in the organization. (02 marks each, 10 marks)

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Select the correct word/words from those given within brackets to fill the blanks in Questions No.
1.6 to 1.10. Write the selected answer in your answer booklet with the number assigned to the
question.

1.6 …………………………. (Japanese / Traditional) management style emphasizes the need for
information flow from the bottom to the top of the organization.

1.7 ………………………… (Organizing / Planning) is a process of setting the organization’s goals and
deciding how best to achieve them.

1.8 Higher profits from high sales is the final objective of the ……………………………… (consumer
concept / selling concept).

1.9 Designing a job with increased number of duties and scope is identified as ……………………… (Job
enlargement / Job enrichment).

1.10 ……………………. (Market segmentation / Market orientation) is dividing a market into distinct
groups of customers who have distinct needs, characteristics or behavior.

(01 mark each, 05 marks)

Write correct answers in your answer booklet for question Nos.1.11 to 1.15.

1.11 State two (02) advantages of digital marketing for an organization.

1.12 List two (02) advantages of effective training of an organization.

1.13 List the four (04) support activities of Porter’s Value Chain.

1.14 State two (02) external factors that determine the rewards received by an employee.

1.15 List two (02) causes for grievances of employees.

(02 marks each, 10 marks)
(Total 25 marks)

End of Section A

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Five (05) Compulsory questions
SECTION B
(Total 50 marks)

Question 02

A manager is a person who needs to familiarize himself with the type of work carried out by the groups
so that he can effectively manage them. Manager needs authority as it makes his position real and gives
him the power to order his subordinates. Sharing of work and authority between a manager and his
subordinate is known as delegation.

You are required to:

(a) Explain with examples the classification of managers based on the level of authority. (04 marks)

(b) Explain four (04) reasons why delegation of authority is important. (04 marks)

(c) State four (04) barriers to effective delegation of authority with reference to a manager. (02 marks)
(Total 10 marks)

Question 03

Behavioral theories of leadership focus on how leaders behave. It assumes that leadership capabilities
can be learned. Accordingly, leaders are not born, but are made. Behavioral theorists believe a leader
behavior is the best predictor of his leadership influences. Their leadership behaviors differentiate
between effective leaders and ineffective leaders.

You are required to:

(a) Explain the three (03) leadership behaviors or styles introduced by Lewin, Lippitt and White.
(05 marks)

(b) State three (03) differences between a manager and a leader. (03 marks)

(c) Explain two (02) functions of leadership. (02 marks)

(Total 10 marks)

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 Question 04

Change management provides a competitive advantage to firms enabling them to quickly and effectively
implement change in order to meet market demand. Change is categorized into planned change and
emergent change. Communication plays an important role in change management.

You are required to:

(a) Explain two (02) differences between planned change and emergent change. (04 marks)

(b) Explain two (02) communication skills required by a manager. (04 marks)

(c) State four (04) benefits of effective communication in an organization. (02 marks)
(Total 10 marks)

Question 05

Human resource planning determines the human resources required by the organization to achieve its
strategic goals. It is a continuous process of systematic planning ahead to achieve optimum use of an
organization’s human resources. Managers need to consider factors such as growth, change and
technology when they plan for human resources. This ensures managers the best fit between employees
and their jobs while avoiding manpower shortages or surpluses.

You are required to:

Explain the steps of the human resources planning process. (10 marks)

Question 06

Capacity is the maximum capability to produce. Capacity of an organization can be increased through
methods such as introducing new equipment, techniques and material or simply increasing the number
of workers. Decisions relating to capacity expansion should be made carefully as they might affect the
product lead time, customer responsiveness, operating costs and the firm’s ability to compete. The
technique used to identify and measure overall capacity of production is referred to as strategic capacity
planning. Capacity planning and controlling allow mangers to decide how the operations of the
organization should react to the fluctuations in demand.

You are required to:

(a) Identify the three capacity expansion strategies. (03 marks)

(b) Explain situations in which an organization can use each of these strategies.
(03 marks)

(c) State four (04) planning and controlling activities of capacity management. . (04 marks)
(Total 10 marks)
End of Section B
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A compulsory question
SECTION C
(25 marks)

Question 07

Mega Sri Ltd. is a large scale pharmaceutical company with a history of over 30 years of doing business
in Sri Lanka. Dr. Sagar Sri is the founder of Mega Sri Ltd., which he started this company while he was
practicing as a medical doctor. Over the years the ownership and the decision making power were solely
held by Dr. Sagar Sri while his three sons looked after the three main departments of the business,
namely, Marketing, Finance and Human Resources as managers. After the sudden death of Dr. Sagar Sri
in 2018, his three sons became Directors of Mega Sri.

Although their father followed a very traditional management style, the three educated sons wished to
develop their family business to an international level by introducing new management practices. They
hired Mr. Perera, an experienced management consultant to advise them on how to upgrade their
business. He found that the prevalent hierarchical organizational structure of Mega Sri delayed decision
making and recommended to three Directors to urgently re-structure the organizational hierarchy and
delegated authority.

Mr. Perera has also identified the weak marketing strategies used in the business. From its inception
sales officers were used as the main agents for promoting the company products among its customers.
Mr. Perera also noted the increasing international and local competition from other pharmaceutical
companies and the urgent need for a new target marketing strategy suitable for the organization.

You are required to:

(a) State three (03) disadvantages of badly designed organizational structure. (03 marks)

(b) State four (04) advantages gained by Mega Sri Ltd. through Reengineering Business Process.
(04 marks)

(c) Identify the most suitable target marketing strategy for this company and state its three (03)
advantages. (04 marks)

(d) Explain three (03) variables included in the marketing mix of Mega Sri Ltd. (06 marks)

(e) Explain how the new management of Mega Sri Ltd. could use a rational planning model to
evaluate and make strategic decisions. (8 marks)
(Total 25 marks)

End of Section C

AAT Sri Lanka Business Management 6|Page

 Action Verbs Check List
Analyze Examine in details to find the solution or
outcome
Differentiate Constitute a difference that distinguishes
Draws something
Analysis (4) Connections Discuss Examine in detail by arguments
Among Ideas
Compare Examine to discover similarities
and Solve
Contrast Examine to show differences
Problems
Outline Make a summary of significant features
Communicate Share or exchange information
Apply Put to practical use
Calculate Ascertain or reckon with mathematical
computation
Uses and Demonstrate Prove or exhibit with examples
Application (3) Adapts Prepare Make or get ready for particular purpose
Knowledge in Solve Find solutions through calculations and/or
New Situations explanation
Assess Determine the value, nature, ability or quality
Graph Represent by graphs
Reconcile Make consistent/compatible with another
Define Give the exact nature, scope or meaning
Explain Make a clear description in detail using relevant
Comprehension (2) facts
Explains Ideas Describe Write and communicate the key features
and Interpret Translate in to understandable or familiar terms
Information
Recognize Show validity or otherwise using knowledge or
contextual experience
List Write the connected items
Recalls Facts Identify Recognize, establish or select after
Knowledge (1) and Basic consideration
Concepts State Express details definitely or clearly
Relate Establish logical or causal connections
Draw Produce a picture or diagram
Level of
Description Action Verbs Verb Definitions
competency

AAT Sri Lanka Business Management 7|Page

 ASSOCIATION OF ACCOUNTING TECHNICIANS
OF SRI LANKA

CURRICULUM 2020

SUGGESTED ANSWERS

Level II

204 - BUSINESS MANAGEMENT (BMA)

A publication of the Education and Training Division

AAT Sri Lanka Business Management 8|Page

Objective Test Questions (OTQs)
Fifteen (15) compulsory questions SECTION A
(Total 25 marks)

Answers to Question 01

1.1 - 3 1.6 - Japanese

1.2 - 4 1.7 - Planning
1.3 - 4 1.8 - Selling Concept
1.4 - 3 1.9 - Job enlargement
1.5 - 4
1.10 - Market Segmentation
(02 marks each, 10 marks) (01 mark each, 05 marks)

1.11 - Low Cost.

- Attracting more customers within a very limited time.

- Better growth options for small businesses.

- Establish brand reputation.

- Solving customers’ problems.

- Potential to earn higher revenues. (01 mark each, 02 marks)

1.12 - Improve morale of employees.

- Less Supervision.

- Fewer accidents.

- Changes of promotions.

- Increased productivity. (01 mark each, 02 marks)

1.13 - Infrastructure.

- Human Resource Management.

- Technology Development.

- Procurement. (1/2 mark each, 02 marks)

AAT Sri Lanka Business Management 9|Page

1.14 - Labour market conditions.

- Economic conditions.

- Wage rate.

- Government controls.

- Cost of living.

- Union influences. (01 mark each, 02 marks)

1.15 - Contract terms

- Working conditions

- Unsatisfactory pay

- Ineffective supervision

- Inter personal issues

- Lack of communication

- Organizational culture and macro influence (01 mark each, 02 marks)

(Total 25 marks)

End of Section A

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Five (05) Compulsory questions
SECTION B
(Total 50 marks)

Answers to Question 02

Unit 1 – Introduction to Management and different perspectives of management.

Unit 2 – Functions of management process.
Learning outcomes - Explain types of managers, managerial roles, and skills at
different levels.
- Explain the importance of organizational structure and its
elements.

(a)

(1) Top level managers – They have the highest level of authority and responsibility in a business
organization. They are responsible for the performance of all departments and therefore have a
cross departmental responsibility. Top management is ultimately responsible for the success or
failure of the organization.

Example: Chief Executive Officer, Managing Director

(2) Middle level managers – They work with first line managers to identify new ways of reaching
organizational goals. They contribute mostly in the planning of the organization and supervise
the first line managers.

Example: Finance Manager, Marketing Manager

(3) Lower level managers – They are responsible for the daily supervision of non-managerial
employees. They directly deal with the employees and handle various tasks.

Example: Supervisors (04 marks)

(b)
(1) Effective management:
By delegation, managers pass their routine works to their subordinates. So they get more time
to concentrate on more important matters. This will help them to excel in new areas and be
more efficient and effective.

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 (2) Employees’ development:
In the process of management, the work is passed on the employees. This gives them
opportunities to use their talents and increases their experience. It makes them better leaders
and decision makers. Thus delegation helps in preparing better future managers.

(3) Motivation of employees:

When a superior passes on the responsibility to his subordinate, it is not merely sharing work
but also sharing trust. This develops a feeling of belongingness and commitment for the
subordinate. It improves his confidence and he feels encouraged to improve his performance.

(4) Facilitation of growth:

While passing on a responsibility and authority managers have to take care of the qualification
and capability of the employee. Division of work and specialization provide a ready work force
to take the leading position in a new venture and thus help in the expansion of the enterprise.

(5) Basis of management hierarchy:

Delegation establishes authority and responsibility between employees. The degree and flow of
authority determines who is to report to whom. It also decides the power enjoyed by each job
position in the organization.

(6) Better coordination:

Authority, responsibility and accountability help to define the powers, duties and answerability
related to various job positions in an organization. This helps to avoid overlapping and
duplication of efforts and thus helps in maintaining coordination amongst departments and
functions of management.
(Explaining 04 points - 04 marks)
(c) - Unwillingness of the manager to delegate authority.

- Fear of competition.

- Lack of confidence in subordinate.

- Lack of ability to direct.

- Absence of control that warn of coming troubles.

- Conservative and cautions temperament of the manager.

- Desire to dominate subordinates.

(Any 02 points - 02 marks)
(Total 10 marks)

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Answers to Question 03

Unit 2 – Functions of management process.

Learning outcomes - Differentiate a leader from a manager.
- Explain leadership theories.

(a)

(1) Autocratic leaders: Make decisions without consulting their teams. Leaders are considered
appropriate when decisions need to be made quickly, when there is no need for input and
when team management is not necessary for a successful outcome.

(2) Democratic leaders: They allow the team to provide input before making a decision,
although the degree of input can vary from leader to leader. This is important for team
agreement matters. But it can be difficult to manage when there are lots of different
perspective and ideas.

(3) Laissez-faire leaders: They don’t interfere and they allow people within the team to make
many of the decisions. This approach works well when the team is highly capable, motivated
and doesn’t need close supervision. However this behavior can arise because the leader is
lazy or distracted and this is where this style of leadership can fail.
(05 marks)

(b)

Basis Manager Leader

A person becomes a manager by virtue A person becomes a leader on the basis of

Origin
of his position. his personal qualities.

Manager has got formal rights in an

Formal Rights Rights are not available to a leader.
organization because of his status.

The members are known as

Members The members are known as followers.
subordinates.

A manager performs all four functions of Leader influences people to work

Functions
management. willingly for group objectives.

Respect A manager is expecting the respect. A leader is naturally receiving the respect.
Stability It is more stable. Leadership is temporary.

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 Manager is accountable for self and Leaders have no well – defined
Accountability
subordinates behavior and performance. accountability.

A manager’s concern is organizational A leader’s concern is group goals and

Concern
goals. member’s satisfaction.

Future focus Managers are short sighted. Leaders are far – sighted.
Attitude
Managers tend to in status – quo Leaders are innovative
towards change
Influencing Managers influence on subordinates by Leaders influence on their followers by
mode using punishment offering rewards

(For 3 differences, 03 marks)

(c)
(1) Directing Function – Leadership involves with the direction of followers in the groups. In this
situation, leader should be a “visionary” leader and take necessary actions to direct his / her
team to greatness.

(2) Communication Function – Leadership involves in communication function in which leader

should effectively communicate important information to their followers. Therefore should be a
good communicator.

(3) Motivational Function – Leadership involves with motivating team members. Therefore should
be a good motivator.

(4) Culture Building Function – As a function of leadership, leader should initiate to build
appropriate culture within organizations. Therefore leader should be a role model to followers.

(5) Changing Function – Changing is a function of leadership. Therefore should be a change agent in
the process of organizational change. (Explaining 2 functions, 02 marks)
(Total 10 marks)

Answers to Question 04

Unit 2 – Functions of management process.

Unit 6 – Change management.
Learning outcomes - Explain the types of organizations change
- Explain communication as a vital function in the modern
business.
- Identify the barriers for effective communication.

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 (a)
Planned Change Emergent change
Carefully planned after analysis of the Strategies that fit the situation rather than
environment pre-planned strategy
The assumption is that environment is The assumption is that environment is
stable continuously changing
Top down process Bottom up process
Inflexible plan- cannot be changed Plan is flexible – can be changed
(For 2 differences, 04 marks)

(b)
(1) Interpersonal Skills:
Interpersonal skills are the skills we use when engaged in face - to - face communication with
one or more other people. Good interpersonal communication skills enable us to work more
effectively in groups and teams, which may be either formal or informal. It is often desirable to
build strong relationships with others, which can in turn lead to better communication and
understanding. Developing empathy for others is also highly important.

(2) Listening Skills:

Listening is a vital interpersonal communication skill. When we communicate we spend 45% of
our time for listening. Reflection and clarification are common techniques used to ensure that
you have heard and understood what was intended.

(3) Presentation Skills:

The thought of giving a presentation or talk to a group of people can be very alarming to the
novice; even hardened professionals can feel nervous. Good planning and practice, however,
can help to alleviate these fears and enable you to present information clearly and effectively.
Further use non-verbal signals, gestures, facial expression, body language even our appearance
become important matters for the effective presentations.

(4) Writing Skills:

Communication skills are not limited to direct interaction with other people and the spoken
word. The ability to be able to write clearly and effectively is key to communication; this set of
skills should not be limited to journalists or professional authors. Poor written communication
can be frustrating for the reader. It is important to understand and overcome common mistakes
and improve how to communicate using the written word.

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 (5) Personal Skills:
Personal Skills are the skills that we use to maintain a healthy body and mind. Developing
personal skills by managers can help with communication process. Improving Self-Esteem and
Building Confidence can help managers to feel more positive about them and their abilities
including ability to communicate. (Explaining 2 skills, 04 marks)

(c)
(1) To maintain effective stakeholder relationships.

(2) For effective problem solving.

(3) Efficient decision making.

(4) Enhance professional image.

(5) Increase productivity via motivation, etc.

(6) Enhance organizational transparency, trust and confidence.

(7) Smooth functioning of a company. (For 4 benefits, 02 marks)

(Total 10 marks)

Answers to Question 05

Unit 5 – Human Resource Management.

Learning outcomes - Discuss the HRM functions and their contribution to achieve
organizational objectives
 Forecasting demand of HR.

 Forecasting supply of HR.

 Balancing supply and demand considerations.

 Formulation of strategies.

 Evaluating and controlling.

Forecasting Demand of HR:

HR planning process is initiated with the forecasting of HR demand. Forecasting human resource demand
is the process of estimating the future human resource requirement in the right quality and the right
number. Potential human resource requirement is to be estimated keeping in view the organization’s
plans over a given period. Analysis of employment trends; replacement needs of employees due to death,
resignations, retirement, termination; productivity of employees; growth and expansion of organization;
absenteeism and labour turnover are the relevant factors for human resources forecasting. Demand
forecasting is affected by a number of external and internal factors.

Forecasting supply of HR:

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Human Resource supply forecasting is the process of estimating availability of human resource followed
by testing of demand for human resource. For forecasting supply of human resource, we need to consider
internal and external supply. Internal supply of human resource is available by the way of transfers,
promotions, retired employees & recall of laid - off employees,, etc. Source of external supply of human
resource is the availability of labor force in the market and new recruitment.

Balancing supply and demand consideration:

Simply put, workforce planning is about forecasting current and future staffing needs in relation to
strategic business objectives, then addressing matters relating to the supply of labour, for example are
there candidates with the skills required? The final step is to get the right balance between labor demand
and supply, so that organization has the right number of employees, with the right skills at the right time.

Formulation strategies:

Human resource management is a function responsible for managing employee resources for an
organization ensuring that organizations have the appropriate employee resources to meet business
needs. Effective planning requires a look at the current and future needs of the organization, a review of
existing resources and their skills, and an evaluation of available talent inside and outside the
organization. Strategies can be suggested for labor surplus as well as labor shortage.

Evaluation and controlling:

Finally, HR managers should evaluate the overall planning effort by using appropriate criteria. In this
process, HR managers should check whether the HR planning matches the HR objectives and policies.
This action plan should be updated according to change in time and conditions.
(10 marks)

Answers to Question 6

Unit 3 – Operation Management.

Learning
AAT Sri Lanka outcomes – Explain
Business the functions and importance of operation management
Management 17 | P a g e
 (a)
 Capacity lead strategy.

 Capacity lag strategy.

 Average capacity strategy. (03 marks)

(b)

 Capacity lead strategy: Capacity is expanded in anticipation of demand growth. It allows

companies to respond to unexpected surges in demand and to provide superior levels of
service during peak period.

 Capacity lag strategy: Capacity is increased after an increase in demand has been
documented. This is used in industries with standard products and cost based on weak
competition. According to this lost customers will return from competitors after capacity has
expanded.

 Average capacity strategy: capacity is expanded to coincide with average expected demand.
This is a moderate strategy in which managers are certain they will be able to sell at least
some portion of expanded output and endure some periods of unmet demand.

(03 marks)

(c)

(1) Loading

(2) Sequencing

(3) Scheduling the orders

(4) Monitor and controlling (04 marks)

(Total – 10 marks)

End of Section B

A compulsory question
SECTION C

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(25 marks)

Answers to Question 7

Unit 2 – Functions of management process.

Unit 4 – Marketing management.
Unit 7 – Introduction to strategic management.
Learning outcomes - Explain the importance of organizational structure
and its elements
- Discuss concepts and importance of marketing mix
- Explain the role of strategy for an organization.

(a)

(1) Employees may have low morale.

(2) Uncertain about reporting lines.

(3) Increasing conflicts among activities.

(4) Lack of coordination among activities.

(5) Slow respond to environmental changes.

(6) Wasting resources. (Any three points, 03 marks)

(b)
(1) Business Process Re-engineering (BPR) revolves around customers’ needs and helps to give
an appropriate focus to the business.

(2) BPR provides cost advantages that assist the organization’s competitive position.

(3) BPR encourages a long term strategic view of operational processes by asking radical
questions about how things are done and how processes could be improved.

(4) BPR helps overcome the short sighted approaches that sometimes emerge from excessive
concentration on functional boundaries.

(5) BPR can help to reduce organizational complexity by eliminating unnecessary activities.
(Any 4 points, 04 marks)

(c)
Most suitable target marketing strategy: Differentiated marketing strategy (01 mark)

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  Ideal for companies wishing to grow.

 A necessary approach for large companies wishing to protect their market share.

 A good approach for firms who have assets/capabilities that can be leveraged into other
target markets.

 A necessary approach where there is a diversity of consumer needs across market

segments. (Any three points - 03 marks)

(d) Product - Product is the goods offered by Mega Sri Ltd. to its customers. Brand name of
products, quality, and services affect the product.

Price - Prices of products

- Discount

- Credit terms

Place - Locations of products available

- Transportations

Promotions - Advertising

- Public relations

- Direct marketing
(Any 3 variables, 06 marks)

(e) Mission and objectives:

First, top management of the company should review their existing vision, mission, goals and
objectives. If those strategic purposes are not sufficient, it is needed to develop new directions.
However those strategic purposes reflect the long term focus of the organization.

Position audit:
A position audit is a systematic assessment of the current position of the organization as a
prerequisite for formulating strategic options. It is generally carried out before the corporate
appraisal in a rational planning model.

Environmental analysis:
Environmental analysis is the study of the organizational environment to pinpoint environmental
factors that can significantly influence organizational operations and strategies. Environmental

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 analysis will help an organization to understand latest trends in the environment which the
organization is operating. Accordingly the management can plan and implement strategies to
compliment the environmental trends. Generally environmental analysis can be as internal
environmental analysis and external environmental analysis.

Strategic option generation:

Based on outcome of the corporate appraisal, different, strategic options will be considered to
capitalize on the opportunities available whilst minimizing risks. These options are identified and
discussed at top level of management. If organization has several business units (SBU), top
management should decide how to allocate resources and what are the strategic priorities based.
Most of the organizations develop growth strategies for filling strategic planning gaps.

Strategy evaluation:
The collections of the strategic options are evaluated by the senior level management before
selecting the best course of actions. First, they have to select corporate level strategies and then
consider the strategic options for each strategic business unit.

Strategic implementation:
Strategic implementation put simply is the process that puts plans and strategies into action to
reach goals. The implementation makes that the company’s plans happen.

Review and control:

As final step of the strategic planning of process, top management should take necessary actions
to review the implemented strategy along the expected outcomes. In other words this is the
comparison between the actual performance and the expected performance. (08 marks)
(Total marks 25)

End of Section C

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