Skip to content

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

Ranjit Auto Components planned to reach 25% market share through a new plant. After a sudden regulatory ban on its main product, management scraps the plan and quickly redesigns its offerings around a permitted product line. Which statement best describes the strategy that eventually operates?

The strategy that ends up operating is an emergent response, so the realised strategy differs from the intended one. The intended plan was abandoned after the regulatory ban, and the new product-line direction arose from unforeseen circumstances instead of from the original deliberate plan.

  1. AIt is purely an intended strategy that was fully realised
  2. BIt is an emergent response, so the realised strategy differs from the intended oneCorrect
  3. CIt is a deliberate strategy because the original plan was documented
  4. DIt is a functional policy rather than a strategy

Explanation

The original plan was the intended strategy, but the ban forced a change, so what is actually realised is partly unplanned and emerges from events. Hence the realised strategy differs from the intended one. Documentation of the original plan does not make the final strategy deliberate.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Strategic Management shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Strategic ManagementFree diagnostic mock

More Introduction to Strategic Management questions