The board of directors of True Goods Inc., a company that has a large product mix, has decided to get actively involved in research and development for the next three financial years. Budget for each business unit under the company will be allocated from the headquarters in proportion to its previous performances. The board has also decided to liquidate those units that have failed to perform so far. Which of the following strategies does this scenario best illustrate?

A. Functional strategy

B. Divisional strategy

C. Business strategy

D. Corporate strategy

Question

Ella Frank

Business

23 December, 00:16

The board of directors of True Goods Inc., a company that has a large product mix, has decided to get actively involved in research and development for the next three financial years. Budget for each business unit under the company will be allocated from the headquarters in proportion to its previous performances. The board has also decided to liquidate those units that have failed to perform so far. Which of the following strategies does this scenario best illustrate?

A. Functional strategy

B. Divisional strategy

C. Business strategy

D. Corporate strategy

+2

Answers (1)

Know the Answer?

Theresa Weber · Answer 1

D. Corporate strategy

Explanation:

Corporate strategy

It is the long - term vision which an organisation set up, to create corporate value and to motivate the workforce for the implementation for the satisfaction of the customer.

The strategy decided by the True Goods Inc, for their next three financial years regarding the performance and liquidating the units will provide the strategic direction as well as the long term goals for the company so that the strategic management activities can be aligned for the continuous progress.