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

Which feature best distinguishes corporate level strategy from functional level strategy?

Corporate level strategy is broad, long-term and covers the whole organisation, set by top management, whereas functional strategy is confined to a department and exists to support the business and corporate strategies, with a narrower and shorter-term focus.

  1. ACorporate strategy has a long-term, organisation-wide scope, while functional strategy is narrower and supports the higher strategiesCorrect
  2. BCorporate strategy is made by supervisors, while functional strategy is made by the board
  3. CCorporate strategy deals only with daily routines, while functional strategy deals with portfolio choice
  4. DCorporate strategy has a shorter time horizon than functional strategy

Explanation

Corporate strategy covers the entire organisation with a long-term horizon and is set by top management. Functional strategy is narrower, concerns a department, and serves the business and corporate strategies. The other options reverse who decides or the time horizon.

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