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

At Gujarat Auto Components, the managing director sets the overall direction and diversification plan, divisional heads convert it into business-level plans for their units, and plant supervisors schedule shifts and machine use. The divisional heads' plans correspond to which level of strategy?

The divisional heads' plans are business-level strategy. Corporate strategy covers the overall direction and diversification set by the managing director, business strategy addresses how each division competes, and functional or operational plans such as shift scheduling are made lower down.

  1. ABusiness-level strategyCorrect
  2. BCorporate-level strategy
  3. CFunctional-level strategy
  4. DOperational scheduling only

Explanation

Corporate-level strategy defines the overall direction and portfolio, set by top management. Business-level strategy is made for each business unit or division and addresses how it competes. Functional or operational plans, like shift scheduling, are made at lower levels. Divisional heads' unit plans are therefore business-level.

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