1. Functional level strategy 2

2. What is a Functional Strategy
A functional strategy is a short term game plan for a key functional area within a company.
Functional strategy must be consistent with long term objectives and the grand strategy

3. Characteristics of functional strategy
Time horizon – annual
Specificity – key function - subunit
Participation – functional manager

4. Functional Strategy in Marketing
The role of the marketing function is to increase sales of the product/service and thus increase revenue generation of the company
Marketing managers develop marketing strategies determining who will sell what , where to whom and in what quantity

5. Functional Strategy in Marketing
Key Functional Strategy
Key consideration
Price
Type of product
Key contributor to profitability
Product image
Price as a basis of competition
Gross profit margin

6. Functional Strategy in Marketing
Key Functional strategy
Key consideration
Place
geographic areas
Key distribution channel
Sales force org
Promotion
Advertising and communication priorities
Media

7. Functional strategy in Finance
Financial strategies direct the use of resources in supporting long term goals and objectives

8. Functional strategy in Finance
Key Functional Strategy
Key consideration
Capital acquisition
Cost of capital
Levels and form of leasing
Capital allocation
Priorities in allocation
Capital allocation authority
Dividend and WC management
Dividend payout ratio
Cash flow requirements

9. Functional Strategy in R&D
R&D Decision Area
Key Consideration
Basic research versus commercial development
Extent of innovation
Vis a vis product dev
New projects
Time horizon
Emphasis on short or long term

10. Functional Strategy in R&D
R&D Decision Area
Key Consideration
Organization fit
Nature of research
Departmental structure
Basic R&D Posture
Offensive or Defensive