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STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION

Explore functional strategies in strategic management, like marketing, financial, operations, purchasing, HRM, and outsourcing to enhance organizational productivity and achieve objectives. Learn about strategic choice, corporate growth strategies, and stakeholder management.

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STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION

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  1. CHAPTER 8 Strategy Formulation: Functional Strategy & Strategic Choice STRATEGIC MANAGEMENT & BUSINESS POLICY11TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER

  2. Functional Strategy The approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity

  3. Functional Strategy • Marketing Strategy – • Pricing • Selling • Distribution • Product development • Line extension • Advertising and promotion • Push strategy • Pull strategy • Pricing • Skim pricing • Penetration pricing • Dynamic pricing

  4. Functional Strategy • Financial Strategy – • Leveraged buyout • Reversed stock split • Tracking stock • R&D Strategy – • Technological leader • Technological follower • Open innovation

  5. Functional Strategy • Operations Strategy – • Job shop • Connected line batch flow • Flexible manufacturing systems • Dedicated transfer lines • Mass production • Continuous improvement system • Modular manufacturing

  6. Functional Strategy • Purchasing Strategy – • Multiple sourcing • Sole sourcing • Just-in-time (JIT) • Parallel sourcing • Logistics Strategy – • Centralization • Outsourcing • Internet • HRM Strategy – • 360 degree appraisal

  7. 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. Proposed Outsourcing Matrix

  9. Functional Strategy • Strategies to Avoid – • 3 Follow the leader • Hit another home run • Arms race • Do everything • Losing hand

  10. Corporate Strategy • Growth Strategies -- • External mechanisms • Mergers • Acquisitions • Strategic alliances

  11. Constructing Corporate Scenarios

  12. Functional Strategy • Subjective Factors Affecting Decisions -- • Management’s attitude toward risk • Pressures from stakeholders • Pressures from corporate culture • Needs and desires of key managers

  13. Stakeholder Priority Matrix

  14. Strategic Choice • Avoiding the Consensus Trap -- • Devil’s Advocate • Dialectical Inquiry

  15. Strategic Choice • Evaluation of Strategic Alternatives -- • Mutual exclusivity • Success • Completeness • Internal consistency

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