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

A Jaipur textile company's top management formulates its overall corporate strategy, the divisional heads of its home-furnishings and apparel businesses decide how each business will compete in its market, and the production manager decides the weekly shift roster to meet output targets. Which option correctly matches these three decisions to levels of strategy?

The correct matching is corporate level, business level, functional level. The top team's company-wide direction is corporate strategy, each division's competitive approach is business strategy, and the production manager's roster supports higher strategies through day-to-day operational execution, which is functional strategy.

  1. ACorporate level; business level; functional levelCorrect
  2. BBusiness level; corporate level; functional level
  3. CCorporate level; functional level; business level
  4. DFunctional level; business level; corporate level

Explanation

Overall strategy for the whole company is set at the corporate level. How each separate business competes is a business-level (SBU) matter. Shift rostering to achieve output is a functional-level decision that implements higher strategies. The other options swap these levels.

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