Skip to content

CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management

To support its business strategy of faster delivery, an Indian e-commerce firm decides to set up regional warehouses and change its vendor payment cycle. These choices are most appropriately classed as which level of strategy?

These are functional level strategies. Warehousing and vendor payment decisions sit within operations and finance and exist to implement the higher business strategy of faster delivery, translating competitive direction into specific departmental actions and resource use.

  1. AFunctional level strategyCorrect
  2. BCorporate level strategy
  3. CBusiness level strategy
  4. DPortfolio level strategy

Explanation

Warehousing and payment cycles are decisions within the operations and finance functions that implement the business strategy. They are functional level strategies. Business strategy sets the competitive aim of fast delivery, but these specific choices are how functions carry it out.

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