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

Surya Foods, an Indian packaged snacks company, allocates a team to track competitor pricing, then the CEO decides to enter the ready-to-eat meals segment, and finally the production head fixes weekly output schedules for the new line. Which pairing of the decision with its strategic level is correct?

Entering the ready-to-eat meals segment is a corporate-level decision because it defines which businesses the firm is in, while setting weekly output schedules is a functional-level decision about departmental operations. The other pairings reverse or misplace these levels.

  1. AEntering ready-to-eat meals: corporate level; weekly output schedules: functional levelCorrect
  2. BEntering ready-to-eat meals: functional level; weekly output schedules: corporate level
  3. CEntering ready-to-eat meals: business level; weekly output schedules: corporate level
  4. DTracking competitor pricing: corporate level; entering new segment: functional level

Explanation

Choosing which businesses or segments to enter is a corporate-level decision on the scope of the firm. Fixing weekly output schedules concerns day-to-day operations of a department, so it is functional level. The other options reverse or misassign these levels.

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