Skip to content

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

Rohan Auto Components has a corporate-level team that decides which businesses to be in, while each division head decides how to compete against rivals in that division's market, and plant managers schedule production. Division heads are working at which level of strategy?

Division heads work at the business level of strategy. Business-level strategy concerns how a unit competes in its particular market to build competitive advantage, whereas corporate level selects the businesses to be in and functional level handles departmental execution.

  1. ACorporate level
  2. BBusiness levelCorrect
  3. CFunctional level
  4. DOperational shift level only

Explanation

Corporate level decides the portfolio of businesses. Business level decides how to compete and gain competitive advantage in a particular business or market, which is what division heads do. Functional level concerns departmental implementation such as production or marketing.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Strategic Management shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Strategic ManagementFree diagnostic mock

More Introduction to Strategic Management questions