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Functional Strategies in Business Management

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The document discusses functional strategy and strategic choice. It defines functional strategy as the approach a functional area takes to achieve corporate objectives and strategies by maxi…

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Camille Donaire Lim
  • Strategy Formulation Overview
  • Functional Strategy Introduction
  • Marketing Strategy
  • Financial Strategy
  • R&D Strategy
  • Operations Strategy
  • Purchasing Strategy
  • Logistics Strategy
  • HRM Strategy
  • Strategies to Avoid
  • Subjective Factors Affecting Decisions
  • Strategic Choice Considerations

CHAPTER 8 Strategy

CHAPTER 8 Strategy
Formulation:
Formulation:
Functional
Strategy
& Strategic
Functional Strategy
& Strategic
Choice

Choice

STRATEGIC MANAGEMENT & BUSINESS POLICY


11TH EDITION
THOMAS L. WHEELEN

J. DAVID HUNGER

8-1

Functional Strategy

The approach a functional area takes to


achieve corporate and business unit
objectives and strategies by maximizing
resource productivity

8-2

Functional Strategy

Marketing Strategy
Pricing
Selling
Distribution

8-3

Functional Strategy

Marketing Strategy
Product development
Line extension

8-4

Functional Strategy

Marketing Strategy
Advertising and promotion
Push strategy
Pull strategy

8-5

Functional Strategy

Marketing Strategy
Pricing
Skim pricing
Penetration pricing
Dynamic pricing

8-6

Functional Strategy

Financial Strategy
Leveraged buyout
Reversed stock split
Tracking stock

8-7

Functional Strategy

R&D Strategy
Technological leader
Technological follower
Open innovation

8-8

Functional Strategy

Operations Strategy
Job shop
Connected line batch flow
Flexible manufacturing systems
Dedicated transfer lines
Mass production
Continuous improvement system
Modular manufacturing

8-9

Functional Strategy

Purchasing Strategy
Multiple sourcing
Sole sourcing
Just-in-time (JIT)
Parallel sourcing

8-10

Functional Strategy

Logistics Strategy
Centralization
Outsourcing
Internet

8-11

Functional Strategy

HRM Strategy
360 degree appraisal

8-12

Proposed Outsourcing Matrix

8-13

Functional Strategy

Strategies to Avoid
Follow the leader
Hit another home run
Arms race
Do everything
Losing hand
8-14

Constructing Corporate Scenarios

8-15

Functional Strategy

Subjective Factors Affecting Decisions -Managements attitude toward risk


Pressures from stakeholders
Pressures from corporate culture
Needs and desires of key managers

8-16

Stakeholder Priority Matrix

8-17

Strategic Choice

Avoiding the Consensus Trap -Devils Advocate


Dialectical Inquiry

8-18

8-1 STRATEGIC MANAGEMENT & BUSINESS POLICY 11TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 8 Strategy Formul
8-2 Functional Strategy The approach a functional area takes to achieve corporate and business unit objectives and strate
8-3 Functional Strategy Marketing Strategy – –Pricing –Selling –Distribution
8-4 Functional Strategy Marketing Strategy – –Product development •Line extension
8-5 Functional Strategy Marketing Strategy – –Advertising and promotion •Push strategy •Pull strategy
8-6 Functional Strategy Marketing Strategy – –Pricing •Skim pricing •Penetration pricing •Dynamic pricing
8-7 Functional Strategy Financial Strategy – –Leveraged buyout –Reversed stock split –Tracking stock
8-8 Functional Strategy R&D Strategy – –Technological leader –Technological follower –Open innovation
8-9 Functional Strategy Operations Strategy – –Job shop –Connected line batch flow –Flexible manufacturing systems –Dedicat
8-10 Functional Strategy Purchasing Strategy – –Multiple sourcing –Sole sourcing –Just-in-time (JIT) –Parallel sourcing

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