Strategic management process involves determining appropriate courses of action for achieving objectives.
Strategic management process involves determining
appropriate courses of action for achieving objectives. In the process of
formulation it is necessary to gear the organization in such a way that all the
functional areas are synchronized viz, finance, marketing, human resources and
operations. Off late logistics is also included as a key functional area.
Further the functional strategies must cover all the three levels of management
– top, middle and lower. It is in this context that we need to study functional
strategies in detail.
Functional experts like R&D, operations,
finance, marketing and human resources devise functional strategies. The
characteristics of functional strategies are as follows.
They provide short-term operational details for
achieving long-term objectives systematically.
scope Functional strategy deals with a relatively
restricted plan, which provides the objectives for a specific function, for the
allocation of resources among different operations within that functional area
and for enabling coordination between them for an optimal contribution to the
achievement of the business-and corporate-level objectives.
Derivative Functional strategies are derived from business and
corporate strategies. Functional strategies specify the grand plans in
different functional areas in time horizons and help operationalize the
strategies. They cascade down the hierarchy and percolate from corporate
strategies to divisional strategies and further down to departmental
strategies. Hindustan Lever Ltd’s functional strategies at the above three
levels can be depicted as follows in Figure 14-1.
Tags : Strategic Management - Strategy Formulation
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