1. FUNCTIONAL STRATEGIES
Tavleen Susan Korah
S4 MBA

2. Definition
Functional strategy is the approach a
functional area takes to achieve
corporate and business unit
objectives and strategies by
maximizing resource productivity.

3. Key elements of functional strategies
• Core competency
Something that a corporation can do
exceedingly well-a key strength.
• Distinctive competencies
When core competencies or core capabilities are
superior to those of the competition.

4. Functional strategies objectives
• Profitability- producing at a net profit in business.
• Market share- gaining and holding a specific share of a
product market.
• Human talent- recruiting and maintaining a high- quality
workforce.
• Financial health- acquiring financial capital and earning
positive returns.
• Cost efficiency- using resources well to operate at low cost.
• Product quality- producing high-quality goods or services.
• Innovation- developing new products and /or processes.
• Social responsibility- making a positive contribution to
society.

5. Types of functional strategies
• Marketing strategy
• R&D strategy
• HRM strategy
• Financial strategy
• Information management strategy

6. Marketing Strategy
• Marketing strategy deals with Pricing, selling and
distributing a Product.
• Here the companies use 2 types of strategies:
*Market Development.
*Product Development.
In Market Development a Company or a Business
Unit:
Capture larger market share of an existing market-
Market saturation and Market Penetration.
Develop new markets for current products

7. Research and Development Strategy
• R & D strategy deals with 2 very important
things:
• Product Innovation
• Process Improvement
It also deals with the questions like, - how new
technology should be assessed? -internal
development -external acquisition etc.

8. HRM Strategy
• HRM strategies are an organization’s palns for
managing people, culture, structure and
training and development and for determining
how people fit into an organization’s future
growth.
• Some companies divide the strategies into 4
major areas; culture, people, organization and
human resource systems.

9. Financial Strategy
• It focuses on the alignment of financial
management within an organization with its
business and corporate strategies to gain
strategic advantage.

10. Information Management Strategy
• It focuses on the alignment of information
management within an organisation with its
business and corporate strategies to gain
strategic advantage.

11. THANK YOU