ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy
Marlow Freight's board commissions a six-month exercise in which it sets a 10-year mission, analyses the environment and internal resources, evaluates options against agreed criteria, selects one and then issues a detailed implementation plan to all divisions. Which approach to strategy development does this best describe?
This is the rational planning model, because strategy is developed through a formal, sequential process of setting objectives, analysing the environment and resources, evaluating options, choosing one and then implementing it top-down, rather than evolving gradually through small adjustments.
- ARational (planning) modelCorrect
- BLogical incrementalism
- CEmergent strategy
- DCrafting strategy through trial and error
Explanation
The sequence of objectives, analysis, option evaluation, choice and then implementation is the classic rational planning model. Incrementalism would instead involve small adjustments and learning, not a comprehensive up-front plan.
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