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

Kaveri Foods' CEO, while preparing a plan, first sets the overall direction for the group, then each division head decides how to compete in its own product market, and finally plant managers frame schedules to carry out these choices. The levels of strategy at which the division heads are working are:

Division heads are working at the business level of strategy. They decide how to compete in their own product markets, while the CEO sets corporate direction for the whole group and plant managers handle functional and operational execution.

  1. ACorporate-level strategy
  2. BBusiness-level strategyCorrect
  3. CFunctional-level strategy
  4. DOperational-level procedure only

Explanation

Corporate level covers the overall direction of the group, which the CEO did. Division heads deciding how to compete in a specific product market are formulating business-level strategy. Plant managers' schedules are functional or operational. So division heads act at the business level.

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