Which are the three levels of strategy?

• A. Corporate, Tactical, Functional
• B. Corporate, Strategic, Functional
• C. Corporate, Business, Functional
• D. Corporate, Operational, Functional

Answer: (C)

In strategic management, the three levels of strategy are corporate, business, and functional. The corporate level looks at the organization as a whole—deciding which industries or markets to be in, how the portfolio should be balanced, and how resources are allocated between different units. The business level focuses on competitive strategy for each individual business unit—how to compete in its market, where to position the offering, and how to achieve a sustainable advantage. The functional level translates those choices into concrete plans within each function (marketing, operations, finance, HR) to operate efficiently and effectively in support of the chosen business strategy.

This combination matters because it links broad, high-level direction with mid-level competitive choices and practical, day-to-day execution. Other labels don’t fit as neatly: tactical and operational refer to shorter-term actions rather than a distinct level of strategy; a middle level called strategic or implying a broad “strategic” level isn’t standard alongside corporate and functional; and calling the middle level operational would misplace where competitive positioning is developed.