CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management
The head of a textile company's apparel division decides to compete as a low-cost producer in the mass market and not to offer premium products. This choice is best described as which level of strategy?
This is business level strategy. It concerns how one business unit or SBU competes in its particular market, here through cost leadership. Corporate strategy decides the portfolio of businesses, whereas functional strategy translates the business strategy into departmental plans such as production or marketing.
- ACorporate level strategy
- BBusiness level strategyCorrect
- CFunctional level strategy
- DGlobal level strategy
Explanation
Choosing how a single business unit competes in its market, for example through cost leadership or differentiation, is a business level (SBU) strategy. Corporate strategy would address which businesses the company should hold at all. A functional strategy would merely implement the chosen approach.
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