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CS Professional · Strategic Management and Corporate Finance · Business Policy and Formulation of Functional Strategy

A retailer decides to integrate its warehouse, transport and inventory systems into a single platform so that stock position is visible in real time across all stores. In strategic terms, this IT initiative mainly supports which role of information technology strategy?

The initiative supports IT's role of providing an integrated information base for coordinating functional decisions. Real-time stock visibility across warehouses, transport and stores lets managers link logistics, inventory and sales choices, rather than merely cutting staff or replacing corporate strategy.

  1. AUsing IT to provide an integrated information base for coordinating functional decisionsCorrect
  2. BUsing IT only to reduce the headcount of the accounts department
  3. CReplacing the need for a corporate-level strategy
  4. DShifting the firm from a business-level to a global strategy

Explanation

An integrated platform gives a common, real-time information base that links logistics, inventory and sales decisions, improving coordination and responsiveness. It is not merely a cost-cutting tool, and IT does not replace corporate strategy or alter the level of strategy by itself.

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