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4 - Functional Stratrgies and Resource Deployment Matrix

The document discusses functional strategies and strategy deployment. It defines functional strategies as strategies for each functional unit that support the overall business strategy. It provides examples of marketing, R&D, HRM, financial, and information management strategies. It then explains strategy deployment as aligning strategies and goals across an organization through systematic planning. The key aspects of the strategy deployment process involve establishing values and objectives, deploying plans to teams, implementing and tracking progress, and applying lessons learned.

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Mansi Goel
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1K views18 pages

4 - Functional Stratrgies and Resource Deployment Matrix

The document discusses functional strategies and strategy deployment. It defines functional strategies as strategies for each functional unit that support the overall business strategy. It provides examples of marketing, R&D, HRM, financial, and information management strategies. It then explains strategy deployment as aligning strategies and goals across an organization through systematic planning. The key aspects of the strategy deployment process involve establishing values and objectives, deploying plans to teams, implementing and tracking progress, and applying lessons learned.

Uploaded by

Mansi Goel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Unit 2: Environmental Analysis

Topic 4: Functional Strategies and


Deployment Matrix

BBA-308 Business Policy & Strategy-


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Meaning of Strategy
Strategy could be:

• A plan or course of action or set of decision rules making a pattern or creating a


common thread.
• The pattern or common thread related to the organization's activities which are
derived from the policies, objectives and goals
• Related to pursuing those activities which move an organization from its current
position to the desired future state.
• Concerned with the resources necessary for implementing a plan or following a
course of action
• Connected to the Strategic positioning of a firm, making trade-offs between its
different activities and creating a fit among these activities.
• The planned or actual coordination of the firm’s major goals and actions, in time
and space that continuously co-align the firm with its environment.

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Different Levels of Strategy

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Meaning of Functional Strategies

• Functional strategy is a strategy for each specific functional unit within a business.

• Functional strategies primarily are concerned with the activities of the functional

areas of a business which support the desired competitive business level strategy

and complement each other.

• They describe the means or methods to be used by functional areas of the

organization in carrying out the corporate level or business unit strategy.

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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.

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Types of functional strategies

• Marketing strategy

• R&D strategy

• HRM strategy

• Financial strategy

• Information management strategy

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Marketing Strategy(1/3)
1. Marketing strategy deals with Pricing, selling and distributing a Product.

2. Here the companies use 2 types of strategies:


*Market Development
*Product Development

3. In Market Development a Company or a Business Unit- Capture larger


market share of an existing market

4. Market saturation and Market Penetration- Develop new markets for


current products.

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Marketing Strategy(2/3)
Companies like UNILEVER, COLGATE-PALMOLIVE, and PROCTER & GAMBLE
• Firstly, These companies are experts at using Advertising and promotion to
implement market saturation/penetration strategy
• Secondly, They extend PLC by introducing “ New and Improved” variations of
the products
• Thirdly, they follow the “ second market strategy”

Now using the Product Development Strategy a Company or a Business Unit can,
develop new products for existing markets develop new products for new
markets.
For Eg: Gujarat Cooperative Milk Marketing Federation
• developed new products to sell to its existing customers
• Then through AMUL it introduced ICE-CREAMS and DESSERTS, HEALTH DRINKS
AND SOUPS
• Line Extension- using a successful brand name to market other products

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Marketing Strategy(3/3)

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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.

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HRM Strategy
• Human resource management (HRM) is the strategic and coherent approach to
the management of an organization's most valued assets - the people

• Here it addresses whether a company should, Hire large no of low skilled


employees(low pay), perform repetitive jobs and quit after a short time

• Or, Hire skilled employees who receive high pay and are trained to participate in
self-managing work teams

• Research indicates that the use of work teams leads to increased quality and
productivity as well as higher employee satisfaction and commitment.

• Some companies divide the strategies into 4 major areas; culture, people,
organization and human resource systems.

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

It focuses upon:
1. Forecasting, planning and budgeting
2. Financial Mix
3. Credit strategies
4. Liquidity strategies
5. Capital investment methods and systems
6. Other decisions
- Capital Budget
- Stock dividend
- Cash flow
- Working capital
- Loans or leases

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

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Strategy Deployment (Hoshin Kanri)
• Strategy Deployment, steers an organization toward its unique long-term
strategic objectives and intermediate goals, while also maintaining and
improving key business processes and results through systematic planning
and good organizational alignment.

• Aligning strategy, measures, and improvement efforts from across an


entire organization toward its true north requires that every employee
understands the organization’s primary goals and strives to reach those
goals through continuous improvement activities, both large and small.

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Strategy Deployment Process - The
7 Steps
Establish organisational values, vision, and mission.

Develop strategic plans, long-term or breakthrough objectives.

Derive annual objectives, implementation roadmap.

Deploy roadmap to teams, define projects, and set targets.

Implement plans, track progress on the balanced scorecard.

Review weekly sprints, monthly progress, quarterly impact.

Summarize annual results and apply learning to the next cycle.

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Strategy Deployment Matrix (Hoshin Kanri X
Matrix)

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References
Strategic management and business policy-
Azhar Kazmi.
www.csuchico.edu ( california state university)
www.andrews.edu
http://learning.north.londonmet.ac.uk
www.sbmt.bsu.by

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