This document discusses functional strategies that companies use across different business areas like marketing, R&D, purchasing, logistics, human resources, operations, and corporate strategy. It provides examples of specific strategies for each area such as line extensions in marketing, technological follower approach in R&D, multiple sourcing in purchasing, and mergers and acquisitions as external growth strategies for corporate strategy. The document also discusses factors that influence strategic choices and methods for evaluating alternative strategies.
This document discusses functional strategies that companies use across different business areas like marketing, R&D, purchasing, logistics, human resources, operations, and corporate strategy. It provides examples of specific strategies for each area such as line extensions in marketing, technological follower approach in R&D, multiple sourcing in purchasing, and mergers and acquisitions as external growth strategies for corporate strategy. The document also discusses factors that influence strategic choices and methods for evaluating alternative strategies.
This document discusses functional strategies that companies use across different business areas like marketing, R&D, purchasing, logistics, human resources, operations, and corporate strategy. It provides examples of specific strategies for each area such as line extensions in marketing, technological follower approach in R&D, multiple sourcing in purchasing, and mergers and acquisitions as external growth strategies for corporate strategy. The document also discusses factors that influence strategic choices and methods for evaluating alternative strategies.
This document discusses functional strategies that companies use across different business areas like marketing, R&D, purchasing, logistics, human resources, operations, and corporate strategy. It provides examples of specific strategies for each area such as line extensions in marketing, technological follower approach in R&D, multiple sourcing in purchasing, and mergers and acquisitions as external growth strategies for corporate strategy. The document also discusses factors that influence strategic choices and methods for evaluating alternative strategies.
Functional Strategy: The approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity 8-2 Functional Strategy Marketing Strategy
Pricing Selling Distribution
8-3 Functional Strategy Marketing Strategy
Product development Line extension Using a successful brand name to market other products It is a good way to appeal to a companys current customers
8-4 Functional Strategy Marketing Strategy
Advertising and promotion 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 pulls the products through the distribution channels A company will spend more money on consumer advertising designed to build brand awareness so that shoppers will ask for the product
8-6 Functional Strategy R&D Strategy Deals with product and process innovation and improvement
Technological leader Technological follower Open innovation A new approach in which a firm uses alliances and connections with corporate, government and academic labs to learn about new developments
8-7 Functional Strategy Purchasing Strategy Deals with obtaining the raw materials, parts, and supplies needed to perform the operations function
Multiple sourcing A purchasing company orders a particular part from several vendors Sole sourcing Relies on only one supplier for a particular part J ust-in-time (J IT) Having the purchased parts arrive at the plant just when they are needed rather than keeping inventories.
8-8 Functional Strategy Logistics Strategy Deals with the flow of products into and out of the manufacturing process
Centralization Outsourcing Internet
8-9 Functional Strategy HRM Strategy Addresses the issue of whether a company or business unit should hire a large number of low-skilled employees who receive low pay, perform repetitive jobs, and most likely quit after a short time or hire skilled employees who receive relatively high pay and are cross- trained to participate in self-managing work teams
360 degree appraisal
8-10 Functional Strategy Operations Strategy Determines how and where a product or service is to be manufactured
J ob shop Connected line batch flow Flexible manufacturing systems Dedicated transfer lines Mass production Continuous improvement system Modular manufacturing
8-11 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
8-12 Proposed Outsourcing Matrix 8-13 Functional Strategy Strategies to Avoid
3 Follow the leader Hit another home run Arms race Do everything Losing hand 8-14 Corporate Strategy Growth Strategies --