Which level of strategy addresses the question "What business are we in?"

The correct choice relates to organizational strategy, which encompasses the overarching direction and goals of an entire organization. This level of strategy is concerned with defining the company's mission, vision, and the overall scope of its operations. When addressing the question, "What business are we in?" organizational strategy is key because it involves identifying the industries and markets in which the company participates and the strategic intent behind its existence in those sectors.

In contrast, functional strategy focuses on specific areas such as marketing, finance, or human resources, detailing how each function supports the overall organizational strategy. Divisional strategy pertains to how a business unit within a larger organization tackles its specific market or product line, and operational strategy is concerned with the day-to-day operations needed to implement strategies at higher levels. Each of these other strategies supports and is guided by organizational strategy but does not address the foundational question of what business the organization chooses to be in.