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

Kaveri Foods's CEO sets the overall direction and diversification plan for the whole group. The head of its snack division decides how to compete in the snack market against rivals. The plant manager decides shift schedules to meet monthly output targets. Which option correctly matches these three to the levels of strategy in order?

The correct matching is corporate, business, functional. The CEO's group-wide direction and diversification is corporate strategy, the snack head's plan to compete in one market is business strategy, and the plant manager's shift scheduling to meet output targets is functional strategy.

  1. ACorporate, business, functionalCorrect
  2. BBusiness, corporate, functional
  3. CFunctional, business, corporate
  4. DCorporate, functional, business

Explanation

Group-wide direction and diversification is corporate-level strategy. Competing in one market with a particular business is business-level strategy. Shift scheduling to meet output targets is functional (operational) level. Hence corporate, business, functional. Option B swaps the first two levels.

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