Question

Give an example of a non-realized strategy.

Answer 1

A non-realized strategy is an example of a strategy that was planned to be implemented by the firm but it got lost during the execution phase and did not actually have translated into implementation.

An example of a non-realized strategy is the plan of a vehicle leasing company to set up manufacturing units in order to backward integrate and ensure reliability of supply. However due to regulatory hurdles and large capex required, the plan was shelved and the vehicle leasing company entered into a strategic alliance with several automobile manufacture for purchase of vehicles as per requirements. Thus the strategy of backward integration through direct investment is an example of non-realized strategy.