CHAPTER 8 Strategy Formulation Functional Strategy Strategic Choice
- Slides: 15
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 objectives and strategies by maximizing resource productivity 2
Functional Strategy Marketing Strategy – • Pricing –Selling –Distribution • Product development –Line extension • Advertising and promotion –Push strategy –Pull strategy • Pricing –Skim pricing –Penetration pricing –Dynamic pricing 3
Functional Strategy Financial Strategy – –Leveraged buyout –Reversed stock split –Tracking stock R&D Strategy – –Technological leader –Technological follower –Open innovation 4
Functional Strategy Operations Strategy – –Job shop –Connected line batch flow –Flexible manufacturing systems –Dedicated transfer lines –Mass production –Continuous improvement system –Modular manufacturing 5
Functional Strategy Purchasing Strategy – –Multiple sourcing –Sole sourcing –Just-in-time (JIT) –Parallel sourcing Logistics Strategy – –Centralization –Outsourcing –Internet HRM Strategy – – 360 degree appraisal 6
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 7
Proposed Outsourcing Matrix 8
Functional Strategy Strategies to Avoid – – 3 Follow the leader –Hit another home run –Arms race –Do everything –Losing hand 9
Corporate Strategy Growth Strategies -–External mechanisms • Mergers • Acquisitions • Strategic alliances 10
Constructing Corporate Scenarios 11
Functional Strategy Subjective Factors Affecting Decisions -–Management’s attitude toward risk –Pressures from stakeholders –Pressures from corporate culture –Needs and desires of key managers 12
Stakeholder Priority Matrix 13
Strategic Choice Avoiding the Consensus Trap -–Devil’s Advocate –Dialectical Inquiry 14
Strategic Choice Evaluation of Strategic Alternatives -–Mutual exclusivity –Success –Completeness –Internal consistency 15
- Formulation of functional strategy
- Functional strategy and strategic choice
- Functional strategy and strategic choice
- Factors affecting strategic choice
- Strategy analysis and choice largely involves making
- Why problem formulation follow goal formulation
- Strategy formulation and implementation
- Captive company strategy
- Types of functional level strategy
- Good choice or bad choice
- Chapter 6 strategy analysis and choice
- Strategy analysis and choice
- Chapter 6 strategy analysis and choice
- Strategic management chapter 6
- Matching stage of strategy formulation framework
- Strategy analysis and choice