Question

1. Which of the following is/are statement(s) of business level strategy, and which one(s) is/are statement(s) of corporate level strategy, and explain the reasons for your choice.
2. 1. Urban Outfitters (an apparel retail company) starts renting clothes
   2. Kraft Foods buys Heinz Corp. (the ketchup company)
   3. Oreo cookies launches cookies with new flavor
   4. Apple plans to make its own microprocessors
   5. Ford eliminates minivan and adds another SUV to its lineup

Answer 1

A Business level strategy is based on a firm's objective of venturing into a particular business. A Corporate level strategy is based on competitiveness of the firms and takeovers.

a. This is a business level strategy because it is based on Urban Outfitters's plan to achieve success in a particular type of business- renting clothes.

b. This is a corporate level strategy because it depends on Kraft's competitiveness with Heinz.

c. This is a business level strategy because it is about Oreo venturing into starting a new flavor.

d. This is a business level strategy because it is about Apple trying to make its own microprocessors.

e. This is a business level strategy because it is about Ford venturing into adding SUV to its lineup