CHAPTER 8 Strategy Formulation Functional Strategy Strategic Choice
- Slides: 21
CHAPTER 8 Strategy Formulation: Functional Strategy & Strategic Choice STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER 1
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 – –Product development • Line extension 4
Functional Strategy Marketing Strategy – –Advertising and promotion • Push strategy • Pull strategy 5
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 R&D Strategy – –Technological leader –Technological follower –Open innovation 8
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 Logistics Strategy – –Centralization –Outsourcing –Internet 11
Functional Strategy HRM Strategy – – 360 degree appraisal 12
Functional Strategy Outsourcing errors – –Activities that should not be outsourced –Wrong vendor selection –Writing poor contract –Overlooking personnel issues –Hidden costs of outsourcing –Failing to plan exit strategy 13
Proposed Outsourcing Matrix 14
Functional Strategy Strategies to Avoid – – 3 Follow the leader –Hit another home run –Arms race –Do everything –Losing hand 15
Corporate Strategy Growth Strategies -–External mechanisms • Mergers • Acquisitions • Strategic alliances 16
Constructing Corporate Scenarios 17
Functional Strategy Subjective Factors Affecting Decisions -–Management’s attitude toward risk –Pressures from stakeholders –Pressures from corporate culture –Needs and desires of key managers 18
Stakeholder Priority Matrix 19
Strategic Choice Avoiding the Consensus Trap -–Devil’s Advocate –Dialectical Inquiry 20
Strategic Choice Evaluation of Strategic Alternatives -–Mutual exclusivity –Success –Completeness –Internal consistency 21
- What is functional strategy
- Factors affecting strategic choice
- Formulation of functional strategy
- What is functional strategy in strategic management
- Strategic analysis and choice in strategic management
- Why problem formulation follow goal formulation
- Globalization strategy
- Captive company strategy
- Business level strategies
- Good choice or bad choice
- Chapter 6 strategy analysis and choice
- Wt strategies
- Chapter 6 strategy analysis and choice
- Strategic management chapter 6
- Matching stage in strategic management
- Chapter 6 strategy analysis and choice
- Shrm vs hrm
- Types of strategy formulation
- Strategy formulation process
- Blue water strategy
- Role of corporate governance in strategy formulation
- Functional and non functional space maintainer