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

Kaveri Auto Components Ltd began the year with a stated intent to lead the Indian EV-parts market. During the year, a new government rule on battery standards forced it to alter its capacity plan, drop one product line and add another, though its overall intent stayed the same. A strategy consultant says the final strategy was only partly what the board had planned. Using Mintzberg's view of strategy formation, which statement best describes the outcome?

Realised strategy here combines deliberate elements that were implemented with emergent elements arising from the new battery rule, while some intended elements, like the dropped product line, stayed unrealised. It is neither a perfect execution of the plan nor purely emergent, and unrealised is not the same as emergent.

1. ARealised strategy is a mix of deliberate strategy that was implemented and emergent strategy that arose from circumstances, while some intended strategy remained unrealisedCorrect
2. BRealised strategy equals intended strategy because the board's plan was followed completely
3. CRealised strategy is wholly emergent because the intended strategy had no role
4. DUnrealised strategy is the same as emergent strategy