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ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy

Corvane plc intended to launch ten new retail stores but, after a funding shortfall and weak consumer demand, opened only four and scrapped the other six. Using Mintzberg's model, how should the six cancelled stores be classified?

The six cancelled stores are unrealised strategy. Mintzberg describes intended strategy that is not carried out, here because of funding shortfalls and weak demand, as unrealised. The four stores actually opened represent deliberate realised strategy, while emergent strategy would refer to unplanned actions that formed a pattern.

  1. AUnrealised strategy, being part of the intended strategy that was not carried outCorrect
  2. BEmergent strategy, because the plan changed during implementation
  3. CRealised strategy, because management made a decision about them
  4. DDeliberate strategy, because the decision to cancel was planned

Explanation

Intended strategy that is not realised is termed unrealised strategy. The six cancelled stores were intended but never delivered. The four opened stores form the deliberate part of the realised strategy. Emergent describes unplanned patterns, not abandoned intentions.

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