Leaders responsible for strategic decision making have to consider many factors, including allocation of resources, organizational design, portfolio management, and. Functional strategies deals with a relatively restricted plan designed to achieve objectives in a specific functional area, allocation of resources among different operations within that functional area and coordination among different functional areas for optimal contribution to the achievement of the business and corporate level objectives. Your functional level strategies should reflect the fact that corporate and business objectives typically require the involvement of multiple functional areas e. Even if you have a great idea for a business, and you have a great product, you are unlikely to go anywhere without strategy. Mba strategic management lecture notes pdf download mba. Corporate strategy learn the 4 pillars of corporate strategy.
Therefore, given to these questions, the importance of strategic management should be further investigated. Part i introduction to strategic management chapter 1 basic concepts of strategic management 1. Functional strategies clarify the grand strategy and provide specific details about the management of key functional areas in the near future. It sets down to achieve some objectives of a business unit by maximizing resource productivity. A strategy or general plan of action might be formulated for broad, longterm, corporate goals and objectives, for more specific business unit goals and objectives, or for a functional unit, even one as small as a cost center. Corporate strategy is different than business strategy as it focuses on how to manage resources, risk, and return across a firm, as opposed to looking at competitive advantages.
These strategies are framed as per the guidelines given by the top level management. Business policy and formulation of functional strategy 14. It can be considered from the point of view of the entire company. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Feb 12, 2020 strategic management is the management of an organizations resources to achieve its goals and objectives. Defining strategic management, planning outline l why strategic management. What a whole organization needs is to make strategic decisions and put the strategy into action. Strategy can be formulated at three levels, namely, the corporate level, the business level, and the functional level. Pdf the importance of strategic management to business. Strategy, plans, and functional integration j5 includes. Summary of various management activities functions used in the strategic management process is.
At the corporate level, strategy is formulated for your organization as a whole. Functional and operational implimentation authorstream. The general observation is that the documentation of functional strategies largely depends on the size of the organization. The theory and practice of strategy in business organizations s. Strategic management for main functional areas in an organization. Fourth, the aim of all managers is the same to create extra. Strategic management is the management of an organizations resources to achieve its goals and objectives. Mba strategic management lecture notes pdf download mba 3rd. An example of how a business defines and applies functional strategy is provided to. It defines strategy and explains the key concepts in strategic management. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.
Pdf organizational strategic planning, implementation and. Strategic management for main functional areas in an. Strategy, plans, and functional integration j5 health. Each functional area requires strategic thinking, which is thinking for the future. Strategic management mcq questions and solutions with. The functional strategy of a company is customized to a specific industry or. Functional level strategies strategic management and performance appraisal just like hrm practices performance appraisal practices also depends upon the strategy adopted by the company traditional techniques of performance appraisal are appropriate for the stability and sustainable growth strategies appraisal by the superior is. Initiatives are usually evaluated continually, not at the end of the strategic planning period. Strategic management objectives, functions, goals, and essentiality. Functional level strategy can be defined as the day to day strategy which is formulated to assist in the execution of corporate and business level strategies. In this article we will discuss about the various steps, stages and phases involved in the. Strategic management functions ceopedia management online. Functional level strategies and the effectiveness of saape ltd.
This analysis is based on the drivers of corporate strategy including the need to grow quickly and more importantly sustain such growth, the need to not lose sight of either longer term profitability and the shorter term results and the balancing of both, and its focus on cost leadership. What is strategic management, and why is it important. Decisions at this level within the organization are often described as tactical. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically strategic management the art and science of formulating, implementing, and evaluating crossfunctional decisions that. Strategic management functional strategies presented by. A functional strategy is a shortterm game plan for a key functional area within a firm.
Corporate strategy deals with decisions related to various business areas in which. Marketing strategy is a functional strategy type of strategy. Functional strategy definition marketing dictionary mba. Organizational strategic planning, implementation and evaluation with analysis of challenges and benefits article pdf available in international journal of applied research and studies 56. Nike, strategy, product differentiation, innovative and outsourcing. Strategic management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. To follow its mission, nikes managers are concerned with elaborating on the strategies listed below. Fourthly, the functional strategy is the types of strategies in strategic management.
Functional strategy refers to an approach that points up a particular functional area of an organization. Our goal is to generate timely, useable and objective research to help improve the military health system mhs to advance the health of dod beneficiaries. Amit sharma 06 apoorv mittal facultyretail strategy 15 harsh vard slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Strategy refers to a general plan of action for achieving ones goals and objectives. This article examines amazons current corporate strategy and evaluates its suitability going forward. Both lines of business require support from marketing, finance and human resources. Second, management applies to any kind of organization.
Jones, functional strategy is a plan of action to strengthen an organizations functional and organizational resources, as well as its coordination abilities, in order to create core competencies. Functional strategies must be consistent with longterm objectives and the grand strategy. Building a foundation for your future 4 customer characteristics and purchasing hot buttons provide the information needed to decide whether the firm can and should attempt to gain or maintain a sustainable competitive advantage for marketing to a particular market segment lehmann and winer 1994. These nine steps provide a guide by which functional leaders can ensure a rigorous approach to strategic planning in a way that effectively prioritizes the successful execution of critical initiatives, whether functional strategic planning takes place on a calendar basis or is more of an ongoing reassessment of priorities. The impact of strategic human resource management on organizational performance 104 profitable company or a healthy economy is the productivity of the workforce.
These strategies specify the outcomes you want to see achieved from the daily operations of specific departments or functions of your business. According to the sixth edition of exploring corporate. Strategic management functions consist of specific methods and techniques used in the different stages of the strategic management process. Strategic management is a continuous process that appraises the business and industries in which the organization is involved, its competitors.
To manage for the present and continue to change so that the firm continues to prosper, in a. All businesses have competition, and it is strategy that allows one business to rise above the others to become successful. Mar 10, 2014 functional level strategies strategic management and performance appraisal just like hrm practices performance appraisal practices also depends upon the strategy adopted by the company traditional techniques of performance appraisal are appropriate for the stability and sustainable growth strategies appraisal by the superior is. In other words, functional strategy is the word mainly used by a business area for realizing the goals and strategies of an organization through the optimal maximization of all the resources. Analysis of amazons corporate strategy management study guide. The history is filled with the examples where the strategic management of offensives and counter offensives paved the path for decisive victories. The model suggests neatness and linearity, but like strategy itself, strategic planning is dynamic.
Third, management applies to managers at all organizational levels. Functional strategy is the strategy or organisational plan adopted by each functional area, viz. Branislav 2014 stated that the application of strategic management practices helps firms in exploiting and creating new and different opportunities for. Its characteristics, formulation, types and other details. A strategy or general plan of action might be formulated for broad, longterm, corporate goals and objectives, for more specific business unit goals and objectives, or for a functional unit, even. Levels of strategy what are different strategy levels. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. Dec 01, 2008 strategic management functional strategies presented by. Branislav 2014 stated that the application of strategic management practices helps firms in exploiting and creating new and different opportunities for tomorrow. The office of strategy management at gnp also has a matrixed relationship with 20 balanced scorecard managers in the two major business units and nine support units and with the owners of the.
Strategic management meaning and important concepts. Many of the most successful business men and women. Functions of strategic management and theories of management. Strategic management contents 1 introduction 7 2 the basis of strategy. In the corporate sector, its emergence started after the culmination of second world war.
The art of strategic management remained primarily associated with the military history. It includes environmental scanning both external and internal strategy formulation strategic or long range planning, strategy implementation and evaluation and control. Strategic management courses is considered one of the most important courses that you will take during mba postgraduate degree as it integrates other courses, builds on them, and acts as a steppingstone to the real world of business. A methodical stepbystep approach for functional leaders. Functional strategy, as is suggested by the title, relates to a single functional operation and the activities involved therein. Apr 23, 2016 understand the three levels of strategy for an organization. Wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. Such decisions are guided and constrained by some overall strategic considerations. Strategic management notes pdf, book, paper mba 2020. Jofre foreword the present report is the result of an ongoing study on the patterns and trends on both the theory and practice in the field of strategic management. Understand the three levels of strategy for an organization. It involves creating organizations which generate value even in turbulent environment over a sustained period of time. The management team typically develops a corporate strategy that. This lesson explains functional strategy and its role in the strategic and operational management of a business.
Functional level strategies are the actions and goals assigned to various departments that support your business level strategy and corporate level strategy. Breaking down the three levels of strategy in any business. What is strategic management process steps, stages and phases. So, continuing with the corporate level strategy of increasing market share, your functional level strategy would then be. Initiatives are usually evaluated continually, not at. Finally, managing is concerned with output this implies efficiency and efficiency. In the corporate sector, its emergence started after. Strategic management involves setting objectives, analyzing the. Functional strategies in strategic management functional strateg y introduction to functional strateg y. Strategic management involves setting objectives, analyzing the competitive environment. A company that repairs computers and sells computer parts has a service line of business and a retail line of business.
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