Which statement best describes the three levels of strategy and the typical responsibilities for each level?

• A. It is the board of directors, middle management, and team leads.
• B. Corporate strategy is the same as business strategy; functional strategy is strategic planning.
• C. Corporate strategy (top management) guides portfolio and resource allocation; business/competitive strategy (business unit managers) decides how to compete; functional strategy (functional leaders) aligns operations, marketing, and support activities.
• D. Functional strategy is top-level; corporate strategy handles operations.

Answer: (C)

Three levels of strategy are at play: corporate, business (competitive), and functional. Corporate strategy is set by top management and shapes the overall portfolio of the firm, guiding where to invest, divest, or enter new markets, and how resources across the whole organization should be allocated. It answers big-picture questions about which businesses to own and how to balance the portfolio for growth and risk.

Business/competitive strategy sits at the level of each business unit and determines how that unit will compete in its market. This includes choices about positioning, cost structure, differentiation, and how to respond to rivals and changing market conditions. It’s about winning in the unit’s specific arena.

Functional strategy is developed by the heads of individual functions—marketing, operations, finance, HR, IT, etc.—and translates the business strategy into concrete actions within each function. It involves aligning processes, capabilities, and activities (like product design, production, branding, and resource planning) so that the unit can execute effectively.

This framing matches the statement that corporate strategy guides portfolio and resource allocation; business/competitive strategy decides how to compete; and functional strategy aligns operations, marketing, and support activities. Other options mix up who is responsible for which level or equate different levels, which doesn’t reflect how strategy is typically structured.