The primary distinction between corporate strategy and business strategy is:
A)Corporate strategy is the responsibility of the CEO; business strategy is formulated by the heads of business units
B)Corporate strategy is concerned with where the firm competes; business strategy with how it competes
C)Corporate strategy is concerned with establishing competitive advantage; business strategy with strategy implementation in individual businesses
D)Corporate strategy is concerned with the long-term performance of the firm; business strategy with resource deployment.

Question

Quizplus · Accepted Answer

Corporate strategy determines the overall direction of the firm, including where it competes, the industries it operates in, and the markets it serves. Business strategy, on the other hand, focuses on how the company competes within a specific market or business unit, including how to create and sustain a competitive advantage. Therefore, the primary distinction between corporate strategy and business strategy is that the former is concerned with where the firm competes, while the latter is concerned with how it competes.

The Primary Distinction Between Corporate Strategy and Business Strategy Is