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CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning

A diversified Indian conglomerate has a head office that decides which businesses to enter, exit or invest in, and how capital is shared among its group companies. At which level of strategy is this decision made?

This is corporate level strategy. Choosing which businesses to enter or exit and allocating capital across group companies concerns the overall scope and portfolio of the firm, which is decided by top management at the head office, unlike business or functional strategies.

  1. ACorporate level strategyCorrect
  2. BBusiness level strategy
  3. CFunctional level strategy
  4. DOperational tactics at plant level

Explanation

Decisions on the scope of the firm, portfolio of businesses and allocation of resources among them are corporate level decisions. Business level strategy deals with competing in one particular market, and functional strategy deals with a department such as marketing or finance.

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