A multinational healthcare provider is deciding whether to acquire a smaller regional hospital network to expand its market share over the next 5 years.

Which level of management is primarily responsible for this decision, and what type of information is required?

Answer options:

Tactical management requiring internal, historical information.

Strategic management requiring external, forward-looking information.

Operational management requiring highly detailed, real-time information.

Strategic management requiring strictly internal, highly accurate historical data.

How to approach this question

Identify the time horizon (5 years) and the nature of the decision (acquisition). This points to top-level strategic planning.

Full Answer

B.Strategic management requiring external, forward-looking information.✓ Correct

Strategic planning involves long-term, high-level decisions (like mergers and acquisitions) made by senior management. It relies heavily on external, forward-looking, and often qualitative information.

Common mistakes

Selecting tactical management, which is more about medium-term budget utilization.

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