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CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management

A firm's top management reviews a proposed acquisition. Which statement about the role of strategists at different levels is most accurate?

Corporate-level strategists decide the portfolio of businesses and resource allocation, whereas business-level managers decide how to compete in their own business, with functional managers supporting; roles are not reversed or outsourced entirely.

  1. ABusiness-level managers decide the corporate portfolio, while the board handles only daily scheduling
  2. BCorporate-level strategists decide on portfolio and resource allocation across businesses, while business-level managers decide how to compete in their particular businessCorrect
  3. CFunctional managers set the mission of the entire group
  4. DAll strategic roles are performed only by external consultants

Explanation

Corporate strategists choose which businesses to be in and allocate resources among them. Business-unit managers formulate competitive strategy for their own business, and functional managers support it. The other options reverse or distort these roles.

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