Functional Strategy - Explained
What is a Functional Strategy?
Written by J. Mance Gordon
Updated at April 21st, 2024
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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.
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
- Organizational Strategies
- Growth-Based (Expansion) Strategies
- Inorganic Growth
- Organic Growth
- Diversification
- Concentration
- Integration or Combination (Horizontal and Vertical)
- Asset Acquisition Strategy Definition
- Horizontal Integration - Explained
- Backward Integration - Explained
- Internationalization
- Cooperative Strategy
- Consortium Definition
- Stability and Retrenchment Strategies
- Competitive Strategies
- Contestable Market Theory
- Value Disciplines
- Porter's Generic Strategies
- Differentiation (Strategy)
- Commoditize
- Niche Market Strategy
- Long Tail
- Low-Cost Production
- Resource-Based View of the Firm
- Resource Dependency Theory
- Ansoff Matrix
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- Blue Ocean Strategy
- Overfished Ocean Strategy
- Hedgehog Concept (Strategy)
- Innovation Strategy
- Bleeding Edge
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- Disintermediation (Strategy)
- Strategic Alliance
- Coopetition (Strategy)
- Loss Leader Strategy
- Lean Strategy
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- Marketing Strategy
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