Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following levels is NOT part of the hierarchical structure of strategy within an organization?

1. Corporate

2. Business

3. Functional

4. Service

The correct answer is: Service

The correct answer, indicating that 'Service' is not a level in the hierarchical structure of strategy, highlights the conventional tiers typically found within an organization. The corporate, business, and functional levels represent the primary frameworks used to devise and implement strategies across an organization. At the corporate level, strategic decisions are made concerning the overall direction and purpose of the organization, including resource allocation and portfolio management. The business level focuses on how to compete successfully in particular markets, allowing for differentiation and competitive advantage. The functional level involves the specifics of how different departments or units (such as marketing, finance, human resources, etc.) align their objectives with the overarching strategies laid out at the corporate and business levels. In contrast, 'Service' does not constitute a recognized level of strategy in this hierarchical model. While service delivery might be a crucial aspect of operational strategy, it does not represent a distinct strategic level in the hierarchy where strategic planning and decision-making typically occur.