Functional strategies

Central University of Rajasthan
Dept of Commerce
Narendra kumar
3r batch 2014-2016

1. FUNCTIONAL STRATEGIES PRESENTED BY: Narendra Kumar Central University of Raj Dept - commerce 3r batch 2014MCOM009

2. FUNCTIONAL STRATEGIES Functional strategy is the approach, a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. It helps managers in focusing company’s major functional areas of activity.

3. FUNCTIONAL STRATEGIES OBJECTIVE Profitability:- P roducing 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 .

4. Product quality:- Producing high-quality goods or services. Innovation:- developing new products and /or processes . Social responsibility- Making a positive control of society.

5. TYPES OF FUNCTIONAL STRATEGIES MANUFACTURING STRATEGY MARKETING STRATEGY HUMAN RESOURCE STRATEGY RESEARCH AND DEVELOPMENT STRATEGY FINANCIAL MANAGEMENT STRATEGY

6. MANUFACURING STRATEGY Manufacturing Strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process. Deals with the development of method for improving performance.

7. CLASIFICATION AS PER PRODUCT Allocation of Input/Resource Available Resource Evaluation of manufacturing product Feedback Control

8. MARKETING STRATEGY According to A.M.A. “marketing is the performance of Business activities that direct the flow of goods and serviced from the producer to the customer.” Marketing strategy is the most element of the functional structure, for the company trying to gain a loyal customer.

9. MARKETING FUNCTIONAL STRATEGY Survey of the Market Selection of target market Study of Customer expectations Grouping of the Customer as per need Linking manufacturing activities with customer Fulfilled the requirement of Customer Feedback Controlling of functional marketing strategy

10. HUMAN RESOURCE STRATEGY HRM strategies are an organization’s plans for managing people, culture, structure and training and development and for determining how people fit into an organization’s future growth.

11. Functional HR STRATEGY Identify Need of the Organisation Ensure required Manforce available or not Selection procedures Training Placing an right employee at right job Evolution performance Control of HR strategy

12. RESEARCH AND DEVELOPMENT STRATEGY Mainly deals with the product development. Involves decisions regarding the modification on the basic of the existing product. It is also focused on the licensing and conduct of the patent policy for the prevention of the use of developed models or generated revenue for their sale.

13. FUNCTIONAL R &D STATEGY Survey of Market Analysis of Existing Business Technology Evolution the stockholders expectations Feedback Controll

14. FINANCIAL MANAGEMENT STATEGY Financial Management involves the Enterprise Asset Management. In order to generate optimal revenue, the company establishes the structure of the investment of previously accumulated cash.

15. FUNCTIONAL STRATEGY OF FINANCIAL MANAGEMENT Recording proper Transaction record All transaction taking place Timely close all accounting books Accounting procedures & Rules Time to time training Ensure the accounting system reducing of fraud

16. Proper evaluate Accounting Books Feedback Control

17. INTEGRATION OF FUNCTIONAL STRATEGY Stage of PLC Functional focus Production Area Marketing Area Personnel Area Finance Area Introduction Stage Research and development, Production Innovation, Centralised purchasing Aggressive advertising and skimming pricing Emphasis on training, Stock options Raise long term Resource, issue of equity Growth stage Production, personnel Purchasing, integration Price reduction, Brand expansion Transfer from other department, Wage- incentives Issue more debts,

18. Maturity stage Marketing and distribution Standardisation, cost reduction, lean manufacturing Routine market policies, Forward integration Handle grievance, link pay with performance Manage working capital, finance through retained earning Decline stage Finance Careful inventory control, buy than make Careful retrenchment Encourage VRS, transfer to other business unit Sell loss making unit, redeem debt pay, pay compensation under VRS

19. THANK YOU