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

A listed Indian group has three divisions, each run as an SBU. Which of the following correctly pairs a decision with the level at which it is primarily taken?

Divesting a loss-making division is correctly matched to the corporate level, because it alters the group's portfolio and overall scope. The other pairings are wrong: production scheduling is operational, portfolio mix is corporate rather than functional, and a division's competitive pricing is a business-level matter.

  1. ADivesting a loss-making division – corporate levelCorrect
  2. BSetting the monthly production schedule of a plant – corporate level
  3. CChoosing the group's portfolio mix – functional level
  4. DDeciding a division's pricing against rivals – functional level

Explanation

Divestment changes the portfolio and scope of the firm, so it is a corporate decision. Production scheduling is operational or functional. Portfolio mix is corporate, and competitive pricing of a division is business-level, so the other pairings are wrong.

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