This document discusses functional level strategies in healthcare. It defines functional level strategy as day-to-day plans that support an organization's overall business strategy. The document outlines strategies for key functional areas: marketing, finance, operations, human resources, and integration. It provides examples of each type of strategy and concludes that functional level strategies allow departments to support organizational goals. A case study on Apple discusses how the company uses backward and forward integration strategies through manufacturing facilities and retail stores.

1. The ICFAI University, Tripura
Kamalghat, West Tripura.
NAME :- UKHAICHING MOG
ID NO :- 22IUT0490002
COURSE :- MHA SEM:- 2
SUBJECT:- STRATEGIC MANAGEMENT IN
HEALTH CARE.
Topic:- Functional level strategy

2. Contents
TOPICS
Introduction
Marketing strategy
Financial Strategy
Operations Strategy
Human resources strategy
Integration
Case study
Conclusion

3. Introduction
WHAT IS FUNCTION LEVEL STRATEGY ?
 A functional level strategy is a day-to-day
plan for organizing routine operations or
activities to support an organization’s
business and corporate strategies.
 Functional level strategies are concerned
with tactical decisions, such as human
resources, production, operations,
marketing, research, development, etc.
Each functional department has its own
function-level strategies.
 A functional level strategy ensures optimum
resource utilization inside the department

4. Marketing strategy.
Deal with pricing, selling and distribution Of product
 Markel development strategy.
A company or business unit can
1. Company Capture larger share of an existing marketing, for current products
through market Saturation and market penetration.
2. Develop new and/or market for current products.
 Product development Strategy.
A company or business unit can
1. Develop new products for existing markets.
2. Develop new product for new market.

5. Marketing strategy (continued…)
 Brand extension:-
Using a successful brand name to market other products.
 Push strategy:-
Spending a large amount of money on trade promotion in order to
gain or hold shelf space in retail outlets.
 Pull strategy:- Advertising to pull products through distribution
channel.
 Penetration pricing:- The price of a product is initially set low to
rapidly reach a wide fraction of the market and initiate word of
mouth.
 Skim pricing:- Set new product prices high and subsequently
lowers them as competitors enter the market. Skim pricing is the
opposite of penetration pricing

6. Financial strategy
 Examines the financial implications of corporate and business level strategic
options and identifies the best financial course of action.
 Financial strategies deal with budgeting, expenditures, and monitoring and
controlling financial activities. Financial strategies ensure the budget is spent the
right way and accounted for.
The management of devidend and stock price is an important part of
organisations/corporation’s financial Strategy.

8. Operation strategy
 1. How and where a product or service is to be manufactured.
 2. The level of vertical integration in production process
 3. The deployment of physical resources, and
 4. Relationship with supplier.

9. Human resources strategy
 This deals with activities related to an organization’s workforce.
 This can include hiring employees, attendance, leave, indemnity, training, career
growth planning, etc.
 It ensures the proper office hygiene conditions.
 Human resource strategies aim to ensure the required skill power is available at
all times and that employees are given opportunities to grow their careers and
stay with the organization.

10. Integration Strategy
 Through integration, expansion is when you combine/join various current
operations of the company without changing the target Customer Market.
 Types
1. Horizontal integration
2. Vertical integration .
a. Backward integration
b. Forward integration

11. Integration Strategy (continued….)
 Horizontal integration:- The process of acquiring or merging with a commercial
entity that is functioning in the same sector or level.
Example:- Vodafone –Idea (VI)
 Vertical integration :- the combination in one firm of two or more stages of
production normally operated by separate firm.
A. Backward integration:- produce raw material for its finished goods .
B. Forward integration:- When company open brand retail stores and directly
approach final customer to offer product and service.

12. Example: Case Study of Apple
It has retail locations to sell its products as well as manufacturing
facilities across the globe for its production.
Apple has its own manufacturing facilities in Taiwan, North San
Jose, etc. In the manufacturing facilities, Apple manufactures its
custom A-series chips, touch id, LCD and OLED screens, etc.
Along with other manufacturing investments in several countries,
Apple strengthens its supply chain by backward integration.
However, it still has external suppliers for its various parts.
Similar to backward integration, the company has also integrated
forward by opening up its own retail outlets in several countries.
By integrating vertically, Apple enjoys freedom in its
manufacturing abilities as well as control its distribution and sale
to the end consumer.

13. Conclusion
 Functional level strategies are actions entrusted to each section to carry out their
operations that support organizations’ corporate and business level strategies.
These strategies let the business achieve the objective of each department.

14. THANK YOU