Functional strategy is the approach functional areas take to achieve corporate objectives by maximizing resource productivity. Key elements include core competencies, distinctive competencies, and objectives like profitability, market share, innovation, and social responsibility. Functional strategies include marketing, research and development (R&D), human resource management (HRM), financial, and information management strategies. Marketing strategy focuses on pricing, selling, distributing products using market development and product development. R&D strategy focuses on product innovation and process improvement. HRM strategy focuses on managing culture, people, organization, and training. Financial strategy aligns financial management with business strategy, and information management strategy aligns information management.

1. FUNCTIONAL STRATEGIES
Tavleen Susan Korah
S4 MBA

2. Definition
Functional strategy is the approach a
functional area takes to achieve
corporate and business unit
objectives and strategies by
maximizing resource productivity.

3. Key elements of functional strategies
• Core competency
Something that a corporation can do
exceedingly well-a key strength.
• Distinctive competencies
When core competencies or core capabilities are
superior to those of the competition.

4. Functional strategies objectives
• Profitability- producing at a net profit in business.
• Market share- gaining and holding a specific share of a
product market.
• Human talent- recruiting and maintaining a high- quality
workforce.
• Financial health- acquiring financial capital and earning
positive returns.
• Cost efficiency- using resources well to operate at low cost.
• Product quality- producing high-quality goods or services.
• Innovation- developing new products and /or processes.
• Social responsibility- making a positive contribution to
society.

5. Types of functional strategies
• Marketing strategy
• R&D strategy
• HRM strategy
• Financial strategy
• Information management strategy

6. Marketing Strategy
• Marketing strategy deals with Pricing, selling and
distributing a Product.
• Here the companies use 2 types of strategies:
*Market Development.
*Product Development.
In Market Development a Company or a Business
Unit:
Capture larger market share of an existing market-
Market saturation and Market Penetration.
Develop new markets for current products

7. Research and Development Strategy
• R & D strategy deals with 2 very important
things:
• Product Innovation
• Process Improvement
It also deals with the questions like, - how new
technology should be assessed? -internal
development -external acquisition etc.

8. HRM Strategy
• HRM strategies are an organization’s palns for
managing people, culture, structure and
training and development and for determining
how people fit into an organization’s future
growth.
• Some companies divide the strategies into 4
major areas; culture, people, organization and
human resource systems.

9. Financial Strategy
• It focuses on the alignment of financial
management within an organization with its
business and corporate strategies to gain
strategic advantage.

10. Information Management Strategy
• It focuses on the alignment of information
management within an organisation with its
business and corporate strategies to gain
strategic advantage.

11. THANK YOU