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ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy

Kestrel Logistics has decided on a strategy of competing in regional parcel delivery through guaranteed next-day service. The operations director now designs depot layouts, driver rosters and a routing system to make this guarantee achievable. According to the levels of strategy, this work is best described as:

This is functional or operational strategy. The business-level choice to compete on guaranteed next-day delivery has already been made, and the operations director is now translating it into depot design, rosters and routing, which implements the business strategy through day-to-day resources and processes.

  1. ACorporate strategy, because it affects the whole company's value
  2. BFunctional/operational strategy, which implements the business strategyCorrect
  3. CBusiness strategy, because it defines the basis of competitive advantage
  4. DStrategic intent, because it states a long-term ambition

Explanation

The choice of next-day guarantee is the business-level decision on how to compete. Depot layouts, rosters and routing are operational decisions that deliver this strategy through resources and processes. Option C describes the earlier decision, not the implementation work.

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