Question

What are functional strategies? Explain them in detail?

Answer 1

Answer:

The third level of strategic planning is functional strategies, which are derived from the tactical strategies. Each functional area or department is assigned the specific goals and objectives it must achieve to support the higher-level strategies and planning. Functional strategies specify outcomes to be achieved from the daily operations of specific departments or functions. Functional strategies reflect that strategic and tactical objectives typically require the involvement of multiple functional areas, such as departments, divisions, and branches. Thus, the tactical plan is divided into the tasks and objectives of each functional area.

For example, the functional strategy for the marketing department in support of the business' goal to increase market share is likely to include identification of new market segments, brand identification programs, and others. Additionally, the production function may be assigned a reduced rejection rate for the product in question.

The functional areas of a business that are commonly assigned function-specific goals are human resources, production, research and development, marketing, and perhaps information technology. Of course, the functional areas that are assigned functional strategies depend on the plan itself and vary by industry, organization, or size. A functional strategy, for any business, large or small, focuses the achievement of a goal on the skills and abilities of individual departments and their employees. In other words, a functional strategy is a short-term plan for achieving one or more goals of a business by one or more functional areas.

Explanation: