High-level decisions guiding the overall direction of an organization are known as what type of strategy?

The correct answer is corporate level strategy because it pertains to the overarching decisions that define the long-term direction and scope of an organization. Corporate level strategy involves determining the types of businesses and markets in which the organization will operate, aligning resources, and coordinating activities across multiple business units or product lines.

This level of strategy is essential for establishing a framework within which the organization operates, impacting overall resource allocation and investment decisions, as well as responding to broader market trends and competitive landscapes. By focusing on the broader implications of the business portfolio, corporate level strategy facilitates coherence and synergy among various divisions, ensuring that all parts of the organization are working towards a common goal.

Business level strategy, on the other hand, focuses more on how a specific business unit competes in its particular industry or market. Functional level strategy is about the specific functions within the organization, such as marketing or finance, supporting the higher-level strategies. Competitive strategy pertains to how an organization will compete in a specific market against its rivals. While all these strategies are relevant to organizational success, corporate level strategy specifically guides the overall direction and is aligned with the vision and mission of the organization as a whole.