Match the items of List - I with List - II and select the code of correct matching : Code :List - I List - II (a) Merger of Vodafone and Idea (i) Business Strategy (b) Launch of Apple iphone 7 plus (ii) Operational Strategy (c) Manufacturing Samsung mobile handsets in India (iii) Corporate Strategy
(a)-(iii), (b)-(i), (c)-(ii)
(a)-(iii), (b)-(i), (c)-(ii) — option 1.
The three levels of strategy, which is the framework being tested :
| Level | Question it answers | Decided by |
|---|---|---|
| Corporate | What businesses should we be in? Scope, growth direction, mergers, acquisitions, diversification, divestment, resource allocation across businesses | Board and top management |
| Business | How do we compete in this particular business? Positioning, product launches, pricing, differentiation against rivals | Strategic business unit head |
| Operational (functional) | How do we deliver it? Production, sourcing, logistics, plant location, HR and finance decisions supporting the business strategy | Functional and plant managers |
Applying it to the three cases :
| Case | Level | Why |
|---|---|---|
| (a) Merger of Vodafone and Idea | (iii) Corporate | A merger changes the scope and structure of the enterprise itself. It is decided at board level, alters who owns what, and is the textbook corporate-level decision |
| (b) Launch of iPhone 7 Plus | (i) Business | A new product within an existing business, aimed at competing more effectively in the smartphone market. It answers how to compete, not what business to be in |
| (c) Manufacturing Samsung handsets in India | (ii) Operational | A decision about where and how to produce — plant location and sourcing. The business Samsung is in does not change; only the manner of delivering it does |
The quickest route is to place (a) first. A merger is unmistakably corporate, and only options 1 and 2 begin with (iii). Between those two, ask whether launching a phone is business or operational: it is competitive positioning, hence business, which gives option 1.
How the levels relate. They form a hierarchy in which each level sets the constraints for the next: corporate strategy allocates resources to businesses, business strategy determines how each will compete, and operational strategy implements it. Strategy is formulated top-down but the information flows bottom-up, and a firm whose functional decisions contradict its business strategy — a differentiator with a cost-minimising supply chain, say — will fail whatever the quality of thinking at the top.
Hence, the answer is (a)-(iii), (b)-(i), (c)-(ii).
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Important Questions from Strategic Management
When the organizational requirements advocate tight cost control; frequent, detailed control reports; structured organization and responsibilities and incentives based on meeting strict quantitative targets then it is called:
Which of the following strategies are types of combination strategies?
(A) No change strategies
(B) Pause/Proceed with caution strategies
(C) Turn around strategies
(D) Profit strategies
(E) Concentration strategies
As per Henry Mintsberg, which of the following is NOT a part of his conception of types of strategies?
- Strategic Management involves :
(a) Assessment of external environment
(b) Identification of subsystem
(c) Unity of command
(d) Span of control
(e) Assessment of resources and capabilities
(f) Identification of goal
Code : Put the following steps of strategic Management Process in correct sequence :
a. Scanning and Evaluation of Business Environment
b. Formulating strategies
c. Implementation of Corporate Strategy
d. Deciding about the Mission of the organisation
e. Setting Corporate Level Objective
Codes :
