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CS Professional · Strategic Management and Corporate Finance · Business Policy and Formulation of Functional Strategy

Which of the following is a typical feature of functional strategies compared with corporate strategy?

Functional strategies are narrower, operational plans for areas like marketing, finance, production and HR, designed to support the business-level strategy. Decisions on which industries to enter or leave are corporate-level matters, not functional ones.

  1. AThey are narrower and operational, formulated for areas such as marketing, finance and HR to support business-level strategyCorrect
  2. BThey decide which industries the group should enter or exit
  3. CThey are formulated only by shareholders at the general meeting
  4. DThey are unrelated to the business-level strategy

Explanation

Functional strategies translate business strategy into departmental action with shorter time horizons and specific detail. Portfolio decisions on entering or exiting industries belong to corporate strategy, so that option is wrong.

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