The difference between a corporate strategy and a business strategy is that:
A) the former sets long-term direction for the total enterprise and the latter is concerned with how a division or strategic business unit will compete in its product or service domain.
B) the former focuses on how a division will compete in its product or service domain and the latter is concerned with guiding the use of organizational resources to implement business strategies.
C) the former is concerned with formulating and implementing strategies while the latter is involved in crafting strategies to guide the allocation of resources.
D) the former adopts standardized products and advertising for use worldwide and the latter seeks efficiencies of global operations with attention to local markets.
E) the former makes decisions regarding facilities locations, and new technologies and the latter customizes products and advertising to best fit local needs.

Question

Quizplus · Accepted Answer

A corporate strategy sets the long-term direction for the entire organization, while a business strategy is concerned with how a specific division or strategic business unit will compete in its product or service domain. In other words, the corporate strategy is focused on the overall direction and vision of the organization, while the business strategy is focused on the specific tactics and actions needed to achieve success within a particular market or industry.

The Difference Between a Corporate Strategy and a Business Strategy