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CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management

A mid-sized Indian two-wheeler maker has one strategic business unit for scooters. Its head decides to compete by offering low-cost, fuel-efficient scooters aimed at price-sensitive urban buyers. This choice is best described as a strategy at which level?

It is business level strategy. The decision concerns how one business unit competes in its particular market, through low cost and fuel efficiency for price-sensitive buyers, rather than which businesses the whole company should own or how a single department should function.

  1. ABusiness level strategyCorrect
  2. BCorporate level strategy
  3. CFunctional level strategy
  4. DStakeholder level strategy

Explanation

Choosing how a single business unit will compete in its market, here through cost leadership for a target segment, is business level (competitive) strategy. Corporate strategy would address which businesses the firm should be in at all.

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