Functional strategies
Download as PPTX, PDF18 likes21,053 views
This document discusses functional strategies and provides examples in key functional areas. It begins by defining functional strategy as how functional areas achieve corporate objectives through maximizing resource productivity. It then lists common functional strategy objectives like profitability, market share, and innovation. The document goes on to describe different types of functional strategies, including manufacturing, marketing, human resources, research and development, and financial management strategies. For each type, it provides high-level explanations of their focus and processes. Finally, it discusses how functional strategies should be integrated at different stages of the product lifecycle from introduction to maturity to decline.
Functional strategies
- 1. FUNCTIONAL STRATEGIES PRESENTED BY: Narendra Kumar Central University of Raj Dept- commerce 3r batch 2014MCOM009
- 2. FUNCTIONAL STRATEGIES • Functional strategy is the approach, a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. • It helps managers in focusing company’s major functional areas of activity.
- 3. FUNCTIONAL STRATEGIES OBJECTIVE • Profitability:- Producing at a net profit in business. • Market share:- Gaining and holding a specific share of a product market. • Human talent:- Recruiting and maintaining a high- quality workforce. • Financial health:- Acquiring financial capital and earning positive returns. • Cost efficiency:-Using resources well to operate at low cost.
- 4. • Product quality:- Producing high-quality goods or services. • Innovation:- developing new products and /or processes. • Social responsibility- Making a positive control of society.
- 5. TYPES OF FUNCTIONAL STRATEGIES • MANUFACTURING STRATEGY • MARKETING STRATEGY • HUMAN RESOURCE STRATEGY • RESEARCH AND DEVELOPMENT STRATEGY • FINANCIAL MANAGEMENT STRATEGY
- 6. MANUFACURING STRATEGY • Manufacturing Strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process. • Deals with the development of method for improving performance.
- 7. CLASIFICATION AS PER PRODUCT • Allocation of Input/Resource • Available Resource • Evaluation of manufacturing product • Feedback • Control
- 8. MARKETING STRATEGY • According to A.M.A. “marketing is the performance of Business activities that direct the flow of goods and serviced from the producer to the customer.” • Marketing strategy is the most element of the functional structure, for the company trying to gain a loyal customer.
- 9. MARKETING FUNCTIONAL STRATEGY • Survey of the Market • Selection of target market • Study of Customer expectations • Grouping of the Customer as per need • Linking manufacturing activities with customer • Fulfilled the requirement of Customer • Feedback • Controlling of functional marketing strategy
- 10. HUMAN RESOURCE STRATEGY • HRM strategies are an organization’s plans for managing people, culture, structure and training and development and for determining how people fit into an organization’s future growth.
- 11. Functional HR STRATEGY • Identify Need of the Organisation • Ensure required Manforce available or not • Selection procedures • Training • Placing an right employee at right job • Evolution performance • Control of HR strategy
- 12. RESEARCH AND DEVELOPMENT STRATEGY • Mainly deals with the product development. Involves decisions regarding the modification on the basic of the existing product. • It is also focused on the licensing and conduct of the patent policy for the prevention of the use of developed models or generated revenue for their sale.
- 13. FUNCTIONAL R &D STATEGY • Survey of Market • Analysis of Existing Business • Technology • Evolution the stockholders expectations • Feedback • Controll
- 14. FINANCIAL MANAGEMENT STATEGY • Financial Management involves the Enterprise Asset Management. In order to generate optimal revenue, the company establishes the structure of the investment of previously accumulated cash.
- 15. FUNCTIONAL STRATEGY OF FINANCIAL MANAGEMENT • Recording proper • Transaction record • All transaction taking place • Timely close all accounting books • Accounting procedures & Rules • Time to time training • Ensure the accounting system reducing of fraud
- 16. • Proper evaluate Accounting Books • Feedback • Control
- 17. INTEGRATION OF FUNCTIONAL STRATEGY Stage of PLC Functional focus Production Area Marketin g Area Personnel Area Finance Area Introduction Stage Research and development , Production Innovation, Centralised purchasing Aggressiv e advertisin g and skimming pricing Emphasis on training, Stock options Raise long term Resource, issue of equity Growth stage Production, personnel Purchasing, integration Price reduction, Brand expansion Transfer from other department, Wage- incentives Issue more debts,
- 18. Maturity stage Marketing and distribution Standardisa tion, cost reduction, lean manufacturi ng Routine market policies, Forward integration Handle grievance, link pay with performan ce Manage working capital, finance through retained earning Decline stage Finance Careful inventory control, buy than make Careful retrenchment Encourage VRS, transfer to other business unit Sell loss making unit, redeem debt pay, pay compensati on under VRS
- 19. THANK YOU