Final answer:
A business strategy identifies how a division or business unit will compete in its product or service domain.
Step-by-step explanation:
A strategy that identifies how a division or business unit will compete in its product or service domain is called a business strategy. Business strategy is a high-level plan that outlines specific goals and objectives, along with the actions and resources needed to achieve them. It helps the business determine its competitive advantage and positioning in the market. For example, a business strategy could involve focusing on a specific target market or segment, developing unique products or services, or adopting a cost leadership strategy.