CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management
In a diversified Indian conglomerate, the board decides to enter the renewable energy sector through an acquisition and allocates capital across its textile, cement and power businesses. At which level of strategy is this decision taken?
This is corporate-level strategy, because deciding which industries to enter and how to allocate capital across several distinct businesses defines the overall scope and portfolio of the whole organisation, rather than competition within a single business or the functioning of one department.
- ACorporate-level strategyCorrect
- BBusiness-level strategy
- CFunctional-level strategy
- DOperational-level tactic
Explanation
Decisions on which industries to enter and how to allocate resources among different businesses concern the whole organisation's scope and portfolio. This is corporate-level strategy. Business-level strategy deals with competing within one business or SBU.
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