Question

Corporate strategy for a diversified or multibusiness enterprise

a) is orchestrated by mid-level managers and focuses on how to create a competitive advantage in each specific line of business the total enterprise is in.
b) concerns how best to allocate resources across the departments of each line of business the company is in.
c) is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries.
d) deals chiefly with what the strategic intent of each of its business units should be.
e) involves how functional strategies should be aligned with business strategies in each of the various lines of business the company is in.

Answer 1

Corporate strategy in a diversified enterprise is directed by senior executives and focuses on business positions in different industries, often leveraging core competencies for success. The involvement of external investors may increase as companies become established and transparent.

Step-by-step explanation:

The corporate strategy for a diversified or multibusiness enterprise is orchestrated by senior corporate executives and centers around the types of initiatives the company uses to establish business positions in different industries.

This would correspond to option 'c' from those provided.

The role of corporate strategy at this level is to oversee how the enterprise allocates resources to different business units, possibly leveraging its core competencies, to ensure the company operates in a cohesive and efficient manner that optimizes overall performance.

While mid-level managers, resource allocation, and functional strategies play a part in the strategic picture, they are directed by the overarching corporate strategy determined by the senior executives.

Corporate strategy sets the stage for other aspects of business planning and is keen on creating a synergy that can drive the enterprise towards long-term profitability and market leadership.

In this context, it's important for companies to identify and focus on their core competencies, which often leads to greater success compared to trying to manage a broad range of products.

As a firm becomes established, the involvement of external investors such as bondholders and shareholders may increase, especially as they become more comfortable with the company's direction due to transparent information about its performance.