Objectives And Objectives Of Functional Strategy Essay
The most significant fact discussed in this chapter is about various ways to identify a functional strategies that can be used to achieve organizational goals and objectives. Functional strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. It is concerned with developing and nurturing a distinctive competence to provide a company or business unit with a competitive advantage. Just as a multidivisional corporation has several business units, each with its own business strategy, each business unit has its own set of departments, each with its own functional strategy.
Functional strategies must be formulated to support business and corporate strategies, otherwise, the company will move in multiple directions and eventually pull itself apart. For a functional strategy to have the best chance of success, it should be built on a distinctive competency residing within that functional area. If a corporation does not have a distinctive competency in a particular functional area, that functional area could be a candidate for outsourcing.
Strategy makers should choose strategic alternatives that minimize external pressures and maximize the probability of gaining stakeholder support. Strategy makers must consider corporate culture pressures and assess the strategy`s compatibility with the corporate culture. They should be able to choose strategic alternatives that…