Question

White Leo Autos manufactures and markets four different cars, Leo Sport, Leo Prestige, Leo Spark, and Leo Ease. These four product variants are operated as individual business units. While the product leaders of Leo Sport, Leo Prestige, and Leo Spark have adopted a differentiation strategy to attract the niche market, the product leader of Leo Ease follows a cost-leadership strategy to suit the mass market. This decision of the product leader of Leo Ease can be ideally categorized as a _____.
a. corporate strategy
b. functional strategy
c. business strategy
d. tactical strategy

Answer 1

Answer:

C. Business Strategy

Explanation:

White Leo Autos has four different cars and each of them operates as a separate Strategic Business Unit SBUs.

Business strategy is how the SBU competes in the market. The competitive strategy of the unit like differentiation strategy or cost leadership etc.

Corporate strategy focuses on how each SBU is operating and how it serves to the mission and vision of the organisation.

Functional strategy focuses on the different functions like HR, marketing, finance of each SBU.