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ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy

Delmar Logistics' managers regularly adjust routes and services based on customer feedback. Senior management sets only broad boundaries, such as markets to avoid, and lets managers decide details within them. Which Mintzberg concept does this describe?

This is an umbrella strategy. Senior management sets broad guidelines or boundaries, such as markets to avoid, while leaving managers free to shape detailed actions within them. That allows strategies to emerge within a controlled framework, unlike imposed strategies driven by external forces or consensus strategies lacking central direction.

  1. AUmbrella strategyCorrect
  2. BProcess strategy
  3. CImposed strategy
  4. DConsensus strategy

Explanation

In an umbrella strategy, top management defines broad targets or boundaries and leaves others free to decide details within them, so strategy can emerge inside the limits. Imposed strategy comes from external forces. Consensus arises through convergence of individual actions without central direction.

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