CHAPTER 8 Strategy Formulation Functional Strategy Strategic Choice
- Slides: 21
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 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
- A functional strategy
- Functional strategy and strategic choice
- Functional strategy and strategic choice
- Subjective factors in strategic choice
- Strategic analysis and choice in strategic management
- Why problem formulation follow goal formulation
- Strategy formulation vs strategy implementation
- Strategic management chapter 7
- Business-level strategy
- Good choice or bad choice
- Chapter 6 strategy analysis and choice
- The nature of strategy analysis and choice
- Chapter 6 strategy analysis and choice
- Strategic management chapter 6
- Chapter 6 strategy analysis and choice
- Chapter 6 strategic management
- Role of hrm in strategy formulation
- Types of strategy formulation
- Build execution into strategy
- Strategy formulation process
- Internal governance mechanisms
- Band and loop space maintainer advantages