Question

Because corporate-level strategies commonly are broader in scope and more complex than business-level strategies:

a. they are easier to implement but often more expensive.
b. their competitive advantages are often more temporary.
c. they create fewer competitive advantages.
d. they are relatively more challenging and costly to use.

Answer 1

Corporate-level strategies are broader and more complex than business-level strategies because they encompass multiple business units and markets, making them inherently more challenging and costly to implement.

Step-by-step explanation:

The question pertains to the challenges involved in implementing corporate-level strategies as opposed to business-level strategies. Corporate-level strategies are usually broader in scope and more complex due to the need for a more extensive overview of the entire corporation, which consists of multiple business units that may operate in diverse markets. This complexity does not necessarily make them easier to implement, and due to their scale, they can be more expensive and challenging.

Examining examples, corporate-level decisions might include mergers and acquisitions, diversification, and strategic alliances. These strategies often demand significant resources, thorough market research, and a deep understanding of interdependencies between business units.

Contrarily, business-level strategies are more focused and concern the ways in which a single business unit competes within its particular market. These strategies are centered around a business's core competencies and are concerned with how a firm delivers value to customers, such as through cost leadership or differentiation.