CMA Intermediate · Operations Management and Strategic Management · Formulation and Implementation of Strategy
A mid-sized Indian packaged-snacks company decides that its single snack division will compete by offering the lowest price in the mass market through tight cost control. This choice is best described as a:
It is a business-level strategy of cost leadership. The decision concerns how a single business competes in its market by keeping costs and prices lowest, rather than choosing which businesses the company should own or how a department should operate.
- ACorporate strategy of diversification
- BBusiness-level strategy of cost leadershipCorrect
- CFunctional strategy of human resources
- DCorporate strategy of divestment
Explanation
Choosing how one business unit competes in its market, here by being the lowest-cost producer, is a business-level (competitive) strategy. No new businesses are being added or sold, so it is not a corporate decision.
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