Final answer:
The term is 'formulation,' which entails creating strategies at both the corporate and business levels to effectively compete in the market. Antitrust policies play a role in maintaining competition, which benefits consumers.
Step-by-step explanation:
The term that describes the guiding policy to address the competitive challenge, and uses corporate- and business-level strategy is formulation. The process of formulation involves developing the strategies that a company will use to compete in its various markets. This process considers both the corporate level, which looks at the overall direction of the company, and the business level, which focuses on specific markets or products.
Antitrust policies, such as anti-monopoly legislation, are intended to preserve competition among businesses by preventing market dominance that may harm consumers through higher prices or reduced innovation. A tool like the four-firm concentration ratio measures the market share of the four largest firms in an industry; a high ratio suggests less competition. Government intervention, through policies like command-and-control regulations, aims to balance the benefits of large-scale production against the potential negative effects on competition.