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CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management

Anil, the CEO of an Indian FMCG company, observes that a 5-year-old strategy of selling soaps through general trade is failing as e-commerce grows. Over the next quarter, management rewrites distribution plans and shifts resources in response to this unplanned market shift rather than an original plan. Which strategic management concept does this best illustrate?

This illustrates emergent strategy, which develops in reaction to unforeseen developments rather than from an original plan. A deliberate strategy would be the planned one that is now failing, while vision and strategic intent describe long-term direction, not an adaptive response to unexpected change.

  1. AStrategic intent
  2. BEmergent strategyCorrect
  3. CVision statement
  4. DDeliberate strategy

Explanation

Emergent strategy arises in response to unforeseen circumstances, not from a prior formal plan. Deliberate strategy follows an intended plan, which is not the case here. Strategic intent and vision are statements of long-term direction and do not describe adapting to an unexpected shift.

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