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

In a diversified Indian conglomerate, the board decides which industries the group should be in and how capital should be allocated among its various businesses. At which level of strategy is this decision taken?

This is corporate level strategy. It defines the overall scope of the organisation, which businesses to be in, and how resources are allocated among them. Business level strategy deals with competing in a single market, while functional strategy supports it through departmental plans.

  1. ACorporate level strategyCorrect
  2. BBusiness level strategy
  3. CFunctional level strategy
  4. DOperational level tactics

Explanation

Decisions on the overall scope of the group, portfolio of businesses and resource allocation among them are made at the corporate level. Business level strategy concerns competing in one industry, and functional strategy concerns departments such as marketing or finance.

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