1. Ch 5: Functional Strategies
By Elias, Jason, Ryan, Scott, and Stephanie

2. Introduction
How Functional Strategies Are Part Of The Strategic Management Process.
Describe the Functional Strategies An Organization Needs.
How Functional Strategies Are Implemented And Evaluated.

3. SMIA: Process
The process is complicated and is like trying to solve a 3-Dimensional puzzle.
The puzzle pieces are represented by the functional strategies.

4. For Example…
When an organization is first founded, top management must provide goals and direction.
Over time core competencies are developed and eventually become competitive advantages.
Managers consistently evaluate and amend strategies as needed.

5. Post SWOT Analysis What is the SWOT Analysis? What does it do?
Identifies the Strengths Weaknesses Opportunities and Threats
What does it do?
Provides decision makers with the information necessary to enable them to make the best decisions
Supports the reason as to why we look at functional strategies in the first place.

6. Three Functional Concerns of Organizations
1. Product Strategies.
Design
Production-Operations
Marketing
2. People Strategies. HR
3. Support Process Strategies.
Information systems
Financial accounting systems

7. Products 3 Main Tasks Product Design and Development Strategies.
First mover
Cross Functional Team
Production Operation Strategies.
Production Operations

8. Strategic Choices
Will there be a formal or in formal process for generating ideas?
What type of and how much research will be needed? (Product and market-industry)
Will there be extensive or limited use of product prototypes, product tests, design reviews, and test markets?

9. FS-HR Strategies Self-directed work teams Problem solving groups
Contingent pay
Attitude surveys
Job rotation
Total quality management programs
Information sharing
Employee suggestions implemented

10. FS-Support Process Information Systems Financial-Accounting Systems
System technology
Information systems needed
Financial-Accounting Systems
Collecting data
Evaluating financial performance
Financial forecasting and budgeting
Determining optimum financing mix
Efficiently and effectively managing financial accounting areas

11. Implementing The Various Functional Strategies
Find The Right Strategy And “Just Do It”
Don’t Treat Certain Functions Independent!
One Functional Area Affects The Other.

12. Evaluating And Making Changes
Using Benchmarks to Determine if Strategy is Working.
Make Adjustments Accordingly.
Controllable And Uncontrollable Circumstances.

13. Coordinating with Other Organizational Strategies
Coordination Is Imperative to Develop A Sustainable Competitive Advantage
Formulate And Implement Numerous Strategies
Toyota Example

14. Take Away Think Of It As a Jigsaw Puzzle
Independent But Interdependent
Benchmark!