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The cell phone division of a multinational corporation has granted its research and development department funds to create new technologies to ensure the organization stays ahead of its competitors in the market. This decision by the cell phone division is an example of the organization's _____ strategy.Multiple Choicetop-levelbusiness-levelfunctional-leveldepartmental-levelcorporate-level

Question

The cell phone division of a multinational corporation has granted its research and development department funds to create new technologies to ensure the organization stays ahead of its competitors in the market. This decision by the cell phone division is an example of the organization's _____ strategy.Multiple Choicetop-levelbusiness-levelfunctional-leveldepartmental-levelcorporate-level

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Solution

This decision by the cell phone division is an example of the organization's functional-level strategy.

Here's why:

  1. Top-level strategy: This is the overall plan for the entire organization, typically formulated by the top management. It doesn't seem to apply here because the decision is specific to the cell phone division, not the entire corporation.

  2. Business-level strategy: This refers to how a company competes in a specific market. While the decision is about staying competitive, it's more about the specific function of creating new technologies, not the broader business strategy.

  3. Functional-level strategy: This refers to the detailed plan for a specific department or function within a company. The decision is about the research and development department in the cell phone division, which fits this definition.

  4. Departmental-level strategy: This is similar to functional-level strategy, but the term isn't as commonly used in strategic management.

  5. Corporate-level strategy: This is the plan for managing and coordinating multiple business units within a corporation. The decision seems to be about a single business unit (the cell phone division), not multiple units.

So, the best answer is functional-level strategy.

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