Corporate strategy formulation deals primarily with:
A)How firms compete in the business areas they have selected
B)High-level financial analysis
C)The details of functional area strategies
D)The selection of business areas in which the firm will compete
E)All of the above

Question

Quizplus · Accepted Answer

Corporate strategy formulation refers to the process of choosing which business areas a firm will compete in, including diversification decisions and resource allocation to different businesses. Option A refers to business level strategy, while option B refers to financial analysis, which may be a part of corporate strategy formulation but is not its primary focus. Option C refers to functional level strategies, which are developed later on in the strategic planning process. Therefore, the best choice is D.

Corporate Strategy Formulation Deals Primarily With