CHAPTER 8 Strategy Formulation Functional Strategy Strategic Choice

  • Slides: 18
Download presentation
CHAPTER 8 Strategy Formulation: Functional Strategy & Strategic Choice STRATEGIC MANAGEMENT & BUSINESS POLICY

CHAPTER 8 Strategy Formulation: Functional Strategy & Strategic Choice STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER 1

Functional Strategy The approach a functional area takes to achieve corporate and business unit

Functional Strategy The approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity 2

Functional Strategy Marketing Strategy – –Pricing –Selling –Distribution 3

Functional Strategy Marketing Strategy – –Pricing –Selling –Distribution 3

Functional Strategy Marketing Strategy – –Product development • Line extension 4

Functional Strategy Marketing Strategy – –Product development • Line extension 4

Functional Strategy Marketing Strategy – –Advertising and promotion • Push strategy • Pull strategy

Functional Strategy Marketing Strategy – –Advertising and promotion • Push strategy • Pull strategy 5

Functional Strategy Marketing Strategy – –Pricing • Skim pricing • Penetration pricing • Dynamic

Functional Strategy Marketing Strategy – –Pricing • Skim pricing • Penetration pricing • Dynamic pricing 6

Functional Strategy Financial Strategy – –Leveraged buyout –Reversed stock split –Tracking stock 7

Functional Strategy Financial Strategy – –Leveraged buyout –Reversed stock split –Tracking stock 7

Functional Strategy R&D Strategy – –Technological leader –Technological follower –Open innovation 8

Functional Strategy R&D Strategy – –Technological leader –Technological follower –Open innovation 8

Functional Strategy Operations Strategy – –Job shop –Connected line batch flow –Flexible manufacturing systems

Functional Strategy Operations Strategy – –Job shop –Connected line batch flow –Flexible manufacturing systems –Dedicated transfer lines –Mass production –Continuous improvement system –Modular manufacturing 9

Functional Strategy Purchasing Strategy – –Multiple sourcing –Sole sourcing –Just-in-time (JIT) –Parallel sourcing 10

Functional Strategy Purchasing Strategy – –Multiple sourcing –Sole sourcing –Just-in-time (JIT) –Parallel sourcing 10

Functional Strategy Logistics Strategy – –Centralization –Outsourcing –Internet 11

Functional Strategy Logistics Strategy – –Centralization –Outsourcing –Internet 11

Functional Strategy HRM Strategy – – 360 degree appraisal 12

Functional Strategy HRM Strategy – – 360 degree appraisal 12

Proposed Outsourcing Matrix 13

Proposed Outsourcing Matrix 13

Functional Strategy Strategies to Avoid – – Follow the leader –Hit another home run

Functional Strategy Strategies to Avoid – – Follow the leader –Hit another home run –Arms race –Do everything –Losing hand 14

Constructing Corporate Scenarios 15

Constructing Corporate Scenarios 15

Functional Strategy Subjective Factors Affecting Decisions -–Management’s attitude toward risk –Pressures from stakeholders –Pressures

Functional Strategy Subjective Factors Affecting Decisions -–Management’s attitude toward risk –Pressures from stakeholders –Pressures from corporate culture –Needs and desires of key managers 16

Stakeholder Priority Matrix 17

Stakeholder Priority Matrix 17

Strategic Choice Avoiding the Consensus Trap -–Devil’s Advocate –Dialectical Inquiry 18

Strategic Choice Avoiding the Consensus Trap -–Devil’s Advocate –Dialectical Inquiry 18