Strategy Formulation by Functional Areas

Strategy Formulation by Functional Areas

• how each functional area contributes to the corporate strategy and developes its own strategies, objectives, and initiatives

The Functional Areas

• Human Resources

• Marketing

• Operations

• Finance

Human Resources

• develops talent and organizational capabilities

  • recruit and select talent

  • train and develop employees

  • manage performance

  • design compensation and benefits

  • manage employee relations

  • build and maintain organizational culture

Marketing

• attracts and retains customers through value proposition

  • understanding customer needs

  • develop and manage products and services

  • create and implement marketing campaigns

  • manage pricing strategies

  • build brand awareness

  • attract and retain customers

Operations

• delivers products and services efficiently and with quality

  • design and manage processes

  • produce and deliver products or services

  • ensure quality and efficiency

  • manage supply chain and inventory

  • optimize resources and reduce costs

  • drive continuous improvement

Finance

• provides and manages the financial resources to support the strategy

  • plan and manage financial resources

  • prepare and manage budgets

  • evaluate investment projects

  • control costs and improve profitability

  • manage financial risk and ensure liquidity

  • provide financial analysis and reporting

Strategy Execution

• strategy execution is the process of putting the chosen strategies into action through key organizational elements to achieve the desired results

Strategic Planning (Formulation)

• analyze internal and external environment

• generate strategic alternatives

• select strategies

  • Uses QSPM

Strategic Results

• strategies are implemented effectively

• organizational resources are aligned

• performance improves

• the organization achieves its strategic objectivies

Functional Area

• a major division within an organization

• groups together people, activities, and resources with similar skills and responsibilities to perform specific business tasks

• all areas work towards a common goal