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ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy

Valtora Foods, a diversified group, is deciding whether to remain in both packaged snacks and frozen meals or to exit frozen meals and reinvest the proceeds in snacks. At which level of strategy is this decision primarily made?

This is corporate level strategy, because the decision concerns the overall scope of the group: which businesses to remain in or exit and where to allocate resources. Business level strategy deals with how to compete within one market, not which markets to be in.

  1. ACorporate level strategyCorrect
  2. BBusiness (competitive) level strategy
  3. CFunctional (operational) level strategy
  4. DTactical level of the marketing department

Explanation

Corporate strategy concerns the scope of the whole organisation: which businesses to be in, and how to allocate resources among them. Deciding to exit one business and reinvest in another is a scope and portfolio decision. Business-level strategy would instead address how to compete within a single market.

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