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Functional Strategy - Explained

What is a Functional Strategy?

Written by Jason Gordon

Updated at April 7th, 2022

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Table of Contents

What is a Functional Strategy?  

What is a Functional Strategy?  

A functional strategy, also known as a “departmental strategy”, concerns each organizational function, and how that organizational unit or division assigned that function will achieve its strategic objectives (a part of the business/competitive strategy). It generally does this by improving or maximizing efficiency and productivity within the functional unit. 

Back to: STRATEGY & PLANNING

Examples of types of functional strategies include:

    •    production strategy,
    •    marketing strategy,
    •    advertisement strategy,
    •    sales strategy,
    •    human resources strategy,
    •    inventory strategy,
    •    financial strategy,
    •    training strategy, etc.

As expected, a functional strategy generally requires the unit and employees to develop specific competencies necessary to provide the business unit with a competitive advantage.
Of course, this will vary with the nature of the function and the specific business unit. As such, each business unit has its own functional strategy.

Related Topics

  • Competitive Strategies
  • Functional Strategies
  • Organizational Strategies
  • Operational Strategy
functional strategy

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