Question Tag: Functional Strategy

• Key activity/function:
  • Corporate/Entity Level: The key function is to formulate decisions.
  • Functional Level: The key function or activity is to implement the decisions formulated at the corporate/entity level.
    (2 marks)
• Risks associated with their decisions:
  • Corporate/Entity Level: The risks associated with decisions at this level are very high; errors can potentially collapse the entire organization.
  • Functional Level: The risks associated with decisions at this level are relatively low, and their impact is usually limited to the concerned department.
    (2 marks)
• Type of decisions:
  • Corporate/Entity Level: The nature of decisions at this level affects the entire organization.
  • Functional Level: The decisions at this level typically affect only the specific department.
    (2 marks)
• Duration of their decisions:
  • Corporate/Entity Level: Decisions at this level are mostly long-term.
  • Functional Level: Decisions at this level are mostly short-term.
    (2 marks)

Grand total: 8 marks