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CMA Intermediate · Operations Management and Strategic Management · Formulation and Implementation of Strategy

Hindustan Unilever's soap business unit decides to launch a premium herbal variant to defend its position against rivals in the soap market. This is mainly a decision at the:

This is a business-level decision, because it concerns how one business unit competes in its own product-market by launching a differentiated variant. It does not involve choosing among businesses in the group portfolio, so it is not corporate strategy.

  1. ACorporate level, because HUL is a large company
  2. BBusiness level, because it relates to competing in one product-marketCorrect
  3. CFunctional level, because soap is a product
  4. DOperational level, because it involves manufacturing

Explanation

Positioning and product moves to compete within a single business unit's market are business-level decisions. Size of the parent does not make it a corporate decision, since no portfolio entry, exit or resource allocation across businesses is involved.

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