Functional Strategies

Question 1

what is the 2 core characteristics of functional strategies?

Answer 1

1. they do not concern the whole company = they don’t have holistic conesequences
2. even though they are separate for each field, they should be harmonised amongst each other

Question 2

def functional strategies

Answer 2

an approach a functional area takes to achieve corporate/SBU objectives and strategies by maximising resource efficiency

Question 3

state 5 examples of functional strategies

Answer 3

1. personnel strategy
2. purchasing strategy
3. operations strategy (production str., R&D str., logistics str.)
4. marketing (including sales) strategy
5. financial strategy

Question 4

why is it important to understand the criteria for harmonisation of functional strategies?

Answer 4

because then it’s much easier to coordinate all of them

Question 5

def harmonisation of functional strategies

Answer 5

harmonising wishes and orientations within the company

Question 6

state the three criteria of harmonisation of functional strategies

Answer 6

1. theoretical-logical sequence
2. long-term bottlenecks
3. priority of objectives

Question 7

define the harmonisation criteria of theoretical-logical sequence

Answer 7

planning in the logical sequence: sales (what to sell) -> production (how to make it) -> purchasing (what do we need) -> …

Question 8

define the harmonisation criteria of long-term bottlenecks

Answer 8

defining which function is the bottleneck and then making those functions priority when planning (starting the sequence with a bottleneck)

Question 9

define the harmonisation criteria of ‘priority of objectives’

Answer 9

the functional fields with more important objectives are a priority (harmonisation starts with them)