The board of directors of Best Digital Inc., a company that has a large product mix, has decided to get actively involved in research and development for the next three financial years. Budget for each business unit under the company will be allocated from the headquarters in proportion to its previous performance. The board has also decided to liquidate those units that have failed to perform so far. Which of the following strategies does this scenario best illustrate?

A) Corporate strategy

B) Functional strategy

C) Business strategy

D) Divisional strategy

Question

Business

Coal

23 April, 03:25

The board of directors of Best Digital Inc., a company that has a large product mix, has decided to get actively involved in research and development for the next three financial years. Budget for each business unit under the company will be allocated from the headquarters in proportion to its previous performance. The board has also decided to liquidate those units that have failed to perform so far. Which of the following strategies does this scenario best illustrate?

A) Corporate strategy

B) Functional strategy

C) Business strategy

D) Divisional strategy

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Answers (1)

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Alexander Robbins · Answer 1

A) Corporate strategy

Explanation:

Corporate strategy

The strategy of decision making by going through all the firm's business in order to determine how to make the most value.

For the development of a corporate strategy, the firms need to look into various business they own, and the impact of business on each other and to find how the parent company is structured to optimize the governance, processes and human capital.

The corporate strategy builds to one of the top of the business strategy, and is concerned with strategic decision making of the individual business.