Skip to content

CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning

Sundaram Textiles has a corporate strategy of growth through its apparel division. The apparel division head decides to compete by offering low-cost school uniforms to government institutions, while the HR department designs a recruitment plan to support this. Which statement best describes these two decisions?

The decision to compete on low cost in government uniform supply is business level strategy, because it concerns competing in one market. The HR recruitment plan supporting it is functional level strategy, since it is a departmental plan implementing the business strategy.

  1. AUniform pricing choice is business level strategy; the HR plan is functional level strategyCorrect
  2. BBoth are corporate level strategies
  3. CUniform pricing choice is functional strategy; the HR plan is corporate strategy
  4. DBoth are business level strategies

Explanation

How a single business unit competes in its market (cost leadership in a segment) is business level strategy. A departmental plan that supports it, such as HR recruitment, is functional level strategy. Neither concerns the overall portfolio, so corporate level is wrong.

Did you get it right without looking?

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

Practise Strategic Analysis and PlanningFree diagnostic mock

More Strategic Analysis and Planning questions