Arbery Fudge Company,Inc.engages in the production and marketing of fudge candy in the United States.The company believes in continuous improvement and constantly evaluates the effectiveness of the control strategies that the managers use.Which of the following situations would necessitate the use strategic control for evaluation?
A) The organization wants to implement a system for formalizing reporting at various levels in an organization.
B) The organization has to perform a task in a relatively limited time frame to help one of its key distributors make use of an important opportunity.
C) The competition in the confectionery market has increased significantly in the recent past and management is planning to revamp its competitive approaches.
D) The organization has current liabilities greater than the current assets. The managers are analyzing the situation to make a decision on whether or not to increase liquidity.

Question

Quizplus · Accepted Answer

The situation where competition in the market has increased significantly would require the use of strategic control for evaluation because the company needs to revamp its competitive approaches to maintain its position in the market. Strategic control involves evaluating the overall effectiveness of a company's strategy and making necessary adjustments to ensure the achievement of long-term goals. As such, it would be crucial for the Arbery Fudge Company to evaluate and potentially adjust their approach to compete effectively in the market. A, B, and D do not necessarily require strategic control for evaluation.