Question

Carrvour Inc. is a company that manufactures steel, cement, cars, and consumerelectronics under a single brand. The top management at Carrvour has decided to enterthe banking and insurance industry based on its assessment of the profit potential inthat industry. Which of the following strategies does this best illustrate?

A) Divisional strategy
B) Business strategy
C) Corporate strategy
D) Functional strategy

Answer 1

Answer:

C) Corporate strategy

Explanation:

Corporate strategy is refer to the the organization's vision set. It develops the confidence of the investor in the company and tries to increase company's equity value. The Diversification of Carrvour Inc. in banking and Insurance sector for the sake of potential profit is an effort to increase it's equity value by increasing the return from different sectors.