FUNCTIONAL STRATEGIES

Prepared by: NESTHEL MARIZ V. CABAL

Functional Strategies
When managed strategically, able to exploit:
Resources Capabilities Core Competencies

How decision makers formulate and

implement organizational strategies

Putting Together the Puzzle

Puzzle pieces represent the organizations

functional strategies Move in desired direction Move towards goals Functional strategies are developed while taking into account the organizations:
Overall vision Mission Corporate and Competitive strategies

Functional Strategies
When organization is founded, overall

strategic direction and goal are formulated Capabilities and Core competencies are developed Support business and corporate level strategies Decision makers look at various functional un its to see what is and isnt working

Functional Strategies
Goal-directed plans and actions of the

organizations functional areas Help ensure that resources and capabilities are used efficiently and effectively Three functional concerns
Product People Support Processes

HR strategies can contribute to performance

Shows commitment to its employees

FUNCTIONAL STRATEGIES-the people

High-performance work practices lead to both high individual and organizational performance
Organizational: improve knowledge, skills, and abilities Individuals: Increase motivation, reduce loafing, help retain quality employees

Marketing Strategies

marketing plan designed to achieve marketing objectives.

Market Positioning and Segmentation

Market Positioning refer to the selection of specific areas

for marketing concentrations and may be expressed in terms of market, product, and geographic location.

Market Segmentation is the analysis of a particular market

demand into its constituent parts, so that sets of buyers can be differentiated and targeted.

Marketing Strategies
Managing the two Cs
Customers Competitors

Other marketing strategies include:

4 Ps Differentiation Building strong brand

Marketing Mix Variables

PRODUCT

PLACE

PROMOTION PRICE

QUALITY FEATURES OPTIONS STYLE

CHANNELS ADVERTISING LIST PRICE COVERAGE PERSONAL SELLING DISCOUNTS LOCATIONS SALES PROMOTION ALLOWANCE INVENTORY PUBLICITY PAYMENT PERIODS BRAND NAME TRANSPORT CREDIT TERMS PACKAGING SIZES SERVICES WARRANTIES & RETURNS

Strategies used by firms in their market development:

Capturing a large share of an existing market

for current products through market saturation or market penetration.

Developing new markets for current

products.

Strategies used by firms in their product development:

Developing new products for existing

markets Developing new products for new markets.

For Advertising and Promotion, they may have the:

Push Strategy calls for using the sales force

and trade promotion to push the product through channels.

Pull Strategy calls for spending a lot of

money on advertising and consumers promotion to build up consumer demand.

For Pricing the following strategies may be adopted:

Skim pricing this is the innovative products without competition at high price so that the recovery of investment will be shorter period.

Penetration pricing this is a pricing of a product at a low price.