Functional Strategy And Disibility Strategy

Decent Essays
What is functional strategy? The approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity and to provide a company or business unit with a competitive advantage (Hunger & Wheelen, 2003). When an organization holds its present strategy, and focus on its current products and market, is stability strategy. The stability family of corporate strategies can be appropriate for a successful corporation operating in a reasonably predictable environment. Stability strategies can be very useful in short run but can be dangerous if followed for too long (Hunger & Wheelen, 2003). Stability strategies can be less risky with no requirement of growth therefore a company can offer the same products to the same market and remain profitable. Furthermore, can increase profits by improving efficiency in current operations while concentrating its resources on developing a competitive advantage, nevertheless continue to pursue the same objectives with no threat by the external environment while the market is unchanged. As the demand for products change and consumers loss interest in the current products on the market, the stability strategy becomes less effective, yet due to advance technology consumers want the latest products and services to date, …show more content…
Through foreign collaboration, you gain knowledge on how to promote and market products and services to foreign countries furthermore manufacturing process. Retrenchment is downsizing to reduce expenses, the battle cry of retrenchment is “Do more with less” meanwhile if the organization can hold on and improve its position, it can shift its strategic emphasis and its resources toward turning itself around (Gainer,

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