CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management
Which statement best describes the level at which strategic planning for an SBU takes place in a multi-business company?
SBU planning is business-level strategy, which concerns how the unit competes and builds advantage in its particular market. Corporate-level strategy covers the group portfolio, while functional and operational plans only support the business strategy.
- ABusiness-level strategy, concerned with how the SBU competes in its particular marketCorrect
- BCorporate-level strategy, deciding only which industries the whole group enters
- COperational strategy, setting daily shop-floor schedules
- DFunctional strategy, limited to the accounting department's policies
Explanation
SBU planning is business-level strategy, focusing on how the unit achieves competitive advantage in its own market. Corporate-level strategy concerns the overall portfolio and industries of the group. Functional and operational plans support the business strategy but do not set it.
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