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Functional Strategy & Strategic Choice Guide

The document discusses functional strategy and strategic choice. It defines functional strategy as the approach a functional area takes to achieve corporate objectives by maximizing resource productivity. It provides examples of marketing, financial, R&D, operations, purchasing, logistics, and HRM strategies. Strategic choice involves avoiding consensus traps when selecting strategies and considering subjective factors like management attitudes and stakeholder pressures.

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31 views18 pages

Functional Strategy & Strategic Choice Guide

The document discusses functional strategy and strategic choice. It defines functional strategy as the approach a functional area takes to achieve corporate objectives by maximizing resource productivity. It provides examples of marketing, financial, R&D, operations, purchasing, logistics, and HRM strategies. Strategic choice involves avoiding consensus traps when selecting strategies and considering subjective factors like management attitudes and stakeholder pressures.

Uploaded by

soobra
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 8 Strategy

CHAPTER 8 Strategy Formulation:


Formulation: Functional
Strategy
Functional Strategy & Strategic
& 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

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