Day: November 12, 2024

Alex plc is a large supermarket chain in the UK which manages all its distribution internally.

Each of the 120 stores is a profit centre.

As part of its strategy development process, Alex pic has identified the following two strategies.

Strategy 1 – Offer its distribution capability from central warehouse to the stores as a service to other supermarkets

Strategy 2 – Train store staff in the handling of personal safety issues

Identity whether these are corporate strategies.

Select ONE answer:

1. Strategy 1: Not a corporate strategy & Strategy:2 Corporate strategy
2. Neither strategy is a corporate strategy
3. Both strategies are corporate strategies
4. Strategy 1: Corporate strategy & Strategy 2: Not a corporate strategy

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > Training store staff is very much an operational issue that does not constitute a corporate strategy, but offering its capability to other supermarkets is a fundamental long-term ‘directional’ decision which commits the company’s resources

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