Which term refers to strategy at the multi-business level aimed at improving company performance or gaining competitive advantage by managing a set of businesses simultaneously?

Which term refers to strategy at the multi-business level aimed at improving company performance or gaining competitive advantage by managing a set of businesses simultaneously?

• A. Business strategy
• B. Corporate strategy
• C. Global strategy
• D. Functional strategy

Answer: (B)

Corporate strategy is the set of decisions and actions that guide a company that owns multiple businesses, focusing on how to coordinate and manage those businesses to improve overall performance and gain competitive advantage. It involves shaping the portfolio—deciding which businesses to own, where to invest, and when to divest—so resources are allocated to create value across the whole firm. By tapping cross‑business synergies, sharing capabilities, and balancing risk across the portfolio, corporate strategy aims to lift the performance of the entire company, not just any single unit. This is distinct from a business strategy, which concentrates on competing effectively within one market or industry; a global strategy, which centers on operating across geographic borders; and a functional strategy, which optimizes specific functions like marketing or operations.

Corporate strategy is the set of decisions and actions that guide a company that owns multiple businesses, focusing on how to coordinate and manage those businesses to improve overall performance and gain competitive advantage. It involves shaping the portfolio—deciding which businesses to own, where to invest, and when to divest—so resources are allocated to create value across the whole firm. By tapping cross‑business synergies, sharing capabilities, and balancing risk across the portfolio, corporate strategy aims to lift the performance of the entire company, not just any single unit. This is distinct from a business strategy, which concentrates on competing effectively within one market or industry; a global strategy, which centers on operating across geographic borders; and a functional strategy, which optimizes specific functions like marketing or operations.