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CMA Intermediate · Operations Management and Strategic Management · Formulation and Implementation of Strategy

Tata Motors' board decides to enter the electric vehicle business and allocates group resources across its passenger, commercial and EV portfolios. At which level of strategy is this decision made?

Corporate-level strategy is correct, because deciding which businesses the group should enter and how to allocate resources among its portfolio of businesses is the responsibility of top management at the corporate level, not of a single business unit or function.

  1. ACorporate-level strategyCorrect
  2. BBusiness-level strategy
  3. CFunctional-level strategy
  4. DOperational-level tactics

Explanation

Decisions on which businesses to enter or exit and how to allocate resources across the portfolio are corporate-level decisions. Business-level strategy concerns competing within one business, and functional strategy concerns departmental support.

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