Skip to content

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

Vihaan Foods Ltd is a diversified group with a food division, a beverages division and a retail division. Each division head formulates the strategy for competing in that division's market, while the group's top management decides which businesses to enter, exit or fund. Which pairing of strategists to level of strategy is correct?

Group top management makes corporate-level strategy, deciding which businesses to enter, exit or fund, while division heads make business-level strategy on how to compete in their own markets. The other pairings wrongly assign functional or operational levels to these strategists.

  1. AGroup top management: corporate level; division heads: business levelCorrect
  2. BGroup top management: functional level; division heads: corporate level
  3. CGroup top management: business level; division heads: operational level only
  4. DGroup top management: operational level; division heads: functional level

Explanation

Decisions on which businesses to enter, exit or fund are corporate-level strategy, taken by top management. Competing within a particular market is business-level strategy, handled by divisional or SBU heads. The other pairings reverse or misassign the levels.

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