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ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy

Danvers Retail, a chain of 40 stores, has no formal long-term plan. The CEO tests new store formats in three locations, consults managers on results, and rolls out successful elements gradually while keeping an overall direction in mind. This is most consistent with which view of strategy?

This is logical incrementalism. Management has a broad direction but develops strategy through deliberate small steps, experiments and learning from results, adjusting as it goes, instead of producing a comprehensive formal plan in advance as the rational model would require.

  1. ALogical incrementalism, in which strategy is developed in small, deliberate steps with learningCorrect
  2. BRational planning, because a general direction exists
  3. CPrescriptive strategy, because the CEO chooses the formats
  4. DStrategic drift, because there is no formal plan

Explanation

Quinn's logical incrementalism describes managers consciously experimenting, learning and adjusting in steps towards a broad direction. Drift is a failure to keep pace with the environment, and nothing suggests that here. Rational planning would require a comprehensive plan up front.

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