CA Intermediate · Financial Management and Strategic Management · Introduction to Strategic Management
Kaveri Textiles has a corporate-level strategy team that decides to enter the home-furnishings business through a new subsidiary. The subsidiary's head then decides how to position its curtain range against competitors in the premium segment, and the production head sets weekly machine schedules. Which option correctly matches the decisions to the levels of strategy?
Entering home furnishings is a corporate-level decision about the portfolio of businesses, positioning the curtain range against rivals is a business-level competitive decision, and weekly machine scheduling is a functional-level operational decision supporting the higher strategies.
- AEntering home furnishings: corporate level; positioning the curtain range: business level; machine schedules: functional levelCorrect
- BEntering home furnishings: business level; positioning the curtain range: corporate level; machine schedules: functional level
- CEntering home furnishings: corporate level; positioning the curtain range: functional level; machine schedules: business level
- DEntering home furnishings: functional level; positioning the curtain range: business level; machine schedules: corporate level
Explanation
Deciding which businesses to be in is a corporate-level choice. Competing in a particular business or segment is a business-level choice. Day-to-day operational decisions in a department such as production are functional-level. The other options swap these levels.
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