Functional Strategies

Group 1

Members: Emelda Bacchus, Andrea Alexander, Ashea Cadiz,Adencia Baptiste

Topic: Strategic formulation: functional strategy and Strategic Choice

Class: Strategic Management

Teacher: Satynarayana Ramella

Functional Strategy

* The approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity.

Functional areas

* Marketing

* Financial

* Research and Development

* Operations

* Purchasing

* Logistics

* Human resource management

* Information Technology

Corporate Strategy

Example: The February 2011 announcement an alliance between Microsoft and Nokia Corp.

* Nokia will now produce phones running Windows Phone 7,

* Nokia’s investment in its own operating system has failed.

* Microsoft now has access to the world’s largest phone maker and its huge mindshare—in many developing nations a mobile phone is known as a Nokia.

* The deal with Microsoft gives both Nokia and Microsoft a route to the future in the smart-phone market.

Business unit strategy

Example:

A taste test

* All areas of the organization pull together to achieve a simple understandable business goal: have a clear win against competitor in a taste test.

Requirements for Achieving corporate and business unit objectives and strategies:

* Documentation outlining functional strategy

* listing estimates

* plannning for operating expenses, headcount, and continuous improvement.

WHY?

* Functioning within budget and stipulations are maintained

Functional strategy Types

Marketing strategy Purchasing strategy

Financial strategy Logistics strategy

Research and Development strategy Human resource management strategy

Operations strategy Information Technology strategy

FUNCTIONAL STRATEGY OBJECTIVES

* Profitability ––producing at a net profit in business....