Which level of decisions encompasses greater risk, cost and profit potential?
a. business
b. lower echelon
c. corporate
d. functional?
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option a.............
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Answer:
c. corporate
Explanation:
The decisions formulated by each SBU to make best use of its resources given the environment it faces, come under the gamut of business level strategies made by corporte decisions. At such a level, strategy is a comprehensive plan providing objectives for SBUs, allocation of resources among functional areas and coordination between them for achievement of corporate level objectives. These strategies operate within the overall organizational strategies i.e. within the broad constraints and polices and long term objectives set by the corporate decisions.
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