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Category: Business and Industry
Date Submitted: 12/16/2012 12:09 AM
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....