Functional strategies which are short-term game plans for the key functional areas are the means to accomplish the annual plans.
Functional Strategies
Functional strategies which are short-term game
plans for the key functional areas are the means to accomplish the annual
plans. Functional strategies by clearly specifying the various measures to be
taken in different functional areas in different time horizons help
operationalize the grand strategy. In other words, functional strategies
provide the short-term operational details for accomplishing the long term
objectives systematically. Pearce II and Robinson Jr. (1988) maintained
“Functional
strategies help in implementation of grand strategy by organizing and
activating specific subunits of the company (marketing, finance, production,
etc) to pursue the business strategy in daily activities. In a sense,
functional strategies translate thought (grand strategy in to action designed
to accomplish specific annual objectives. for every major subunit of a company,
functional strategies identify and
coordinate actions that support the grand strategy and improve the likelihood
of accomplishing annual objectives.”
Operationalizing the corporate strategy requires
the development of functional strategies in key areas like marketing,
production, R &D, finance and human resources. Figure.4.5 Illustrates
annual objectives and functional strategies

The annual objective is to increase sales by ` 86 crores. Strategies for this
include, for example, increasing the sale of division A by `38 crores, division B by ` 30 croes, division C by `18 crores, developing a new
product, intensifying promotion by increasing the size of the filed sales
force, increasing the number of dealers etc.
The functional strategy for marketing must cover
all the factors of the marketing mix. Mutually consistent strategies for each
of the factors must be developed to help achieve the annual marketing
objective. R & D strategy may involve improving product or
packing, developing new product etc. Similarly every key functional area must develop
strategies to achieve the annual objectives. The functional strategies are
discussed in detail in unit III of this study material for all the functional
areas viz., R & D operations, finance, human resources, logistics,
information systems and marketing
Tags : Strategic Management - Concept Of Corporate Strategy
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