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

Meera Pharma's CEO says the firm's three levels of strategy are being reviewed: the board is deciding which businesses (generics, diagnostics, wellness) to keep in the portfolio, each business head is deciding how to compete in his market, and the production head is deciding how to improve plant efficiency. Which option correctly matches the decisions to strategy levels in this order?

The correct order is corporate level, business level, functional level. Choosing which businesses to keep in the portfolio is corporate strategy, deciding how each business competes in its market is business strategy, and improving plant efficiency is a functional-level strategy.

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

Explanation

Deciding which businesses to hold in the portfolio is a corporate-level strategy. How to compete within a particular business is business-level strategy. Improving plant efficiency is a functional-level (operational) strategy. Hence the order is corporate, business, functional.

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