Formulation of Functional Level Strategy

FORMULATION

OF

FUNCTIONAL LEVEL STRATEGY

Hiriyappa. B, Ph.D.

Formulation of Functional Level Strategy

by Dr Hiriyappa B © 2017

All rights reserved.

Smashwords Edition

ISBN:  9781370235827

No part of this book may be reproduced in any written, electronic, recording, or photocopying without written permission of the publisher or author. The exception would be in the case of brief quotations embodied in the critical articles or reviews and pages where permission is specifically granted by the publisher or author.

Although every precaution has been taken to verify the accuracy of the information contained herein, the author and publisher assume no responsibility for any errors or omissions. No liability is assumed for damages that may result from the use of information contained within.

Contents

Chapter 1. Marketing Strategy Formulation

Chapter 2. Financial Strategy Formulation

Chapter 3 Production Strategy Formulation

Chapter 4. Logistics Strategy

Chapter 5. Human Resource Strategy

.

CHAPTER 1

MARKETING STRATEGY FORMULATION

As market windows open and close more quickly, it is important that R & D be tied more closely to corporate strategy.

William Spender

Most of the time, strategists should not be formulating strategy at all; they should be getting on with implementing strategies they already have.

Henry - Mintzberg

INTRODUCTION

For effective strategy formulation, strategists have to provide valuable direction to functional managers regarding the plans and policies which are adopted by firms.

Functional strategies are typically: marketing, financial, production and human resources.

Functional strategies are based on the functional capability factors in firms.

For each functional area, we have to find the main areas and then discuss the sub areas of each functional area. These are regarding the content of functional strategies, important factors and the importance in the process of strategy formulation.

Functional strategies are operated below the strategic business units or business level strategies for functional level strategy formulation.

Functional level strategies consist of guidelines that are set at higher levels.

Functional managers need guidance and directions from the business strategy in order to make decisions which are related to the functional areas.

Operational plans explain the functional managers what has to be done meanwhile policies are stated how the plans are to be implemented.

REASONS FOR FUNCTIONAL STRATEGIES ARE NEEDED TO FIRMS

The development of functional strategies is formulated by the top-level management of the firm’s. The functional level involves the execution of policy which made by the top level management. Strategic managers need to be segregated into viable functional