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

Meera Textiles Ltd has a corporate-level team that decides which businesses the group should be in, a divisional head for its home-furnishing business who decides how to compete against rivals in that business, and a plant manager who schedules production shifts to meet the divisional plan. Which option correctly maps these three decisions to the levels of strategy?

The correct mapping is corporate level, business level and functional or operational level. Choosing which businesses to be in is corporate strategy, deciding how to compete in the home-furnishing business is business strategy, and scheduling production shifts is functional-level execution of the divisional plan.

  1. ACorporate level; business level; functional/operational levelCorrect
  2. BBusiness level; corporate level; functional/operational level
  3. CFunctional level; business level; corporate level
  4. DCorporate level; functional level; business level

Explanation

Deciding the portfolio of businesses is corporate-level strategy. Deciding how to compete in a particular business is business-level (competitive) strategy. Scheduling shifts to execute the plan is functional/operational. Option B swaps the first two; C and D reverse or misplace the levels.

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