Functional Level Strategy

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The Mission
Mission which indicates the purpose and activities of the business, for example, The following table contrasts hard and soft mission statements. Hard| Soft|
What business is/does
Primary products/services
Key processes & technologies
Main customer groups
Primary markets/segments
Principal channels/outlets| Reason for existence
Competitive advantages
Unique/distinctive features
Important philosophical/social issues
Image, quality, style, standards
Stakeholder concerns|

Compare the following statements:
Hard Statement| Soft Statement|
X Corp. designs, develops, assembles and markets systems for data base management. These systems integrate its proprietary operating system software with hardware supplied by major manufacturers, and are sold to small, medium and large-sized companies for a range of business applications. Its systems are distinguished by a sophisticated operating system, which permits use without trained data-processing personnel. | Our mission is to enhance our customers' business by providing the very highest quality products and services possible. Our customer support strategy is based upon total, no-compromise customer satisfaction and we continually strive to offer a complete package of up-to-date value added solutions to meet our customers' needs. We value above all our long term customer relations.| Intel's original plan,The company will engage in research, development, and manufacture and sales of integrated electronic structures to fulfill the needs of electronic systems manufacturers. This will include thin films, thick films, semiconductor devices, and ......... A variety of processes will be established, both at a laboratory and production level ...... as well as the development and manufacture of special processing and test equipment required to carry out these processes. Products may include dioded transistors ....... Principal customers for these products are expected to be the manufacturers of advanced electronic systems ..... It is anticipated that many of these customers will be located outside California. EVERY BUSINESS UNIT DEVELOPS FUNCTIONAL STRATEGIES FOR EACH MAJOR DEPARTMENT

Functional-level strategy according to the text - Organizational Theory, Design, and Change by Gareth R. Jones, is a plan of action to strengthen an organization's functional and organizational resources, as well as its coordination abilities, in order to create core competencies.

* MARKETING STRATEGY
* FINANCIAL STRATEGY
* RESEARCH & DEVELOPMENT STRATEGY
* OPERATIONS STRATEGY
* PURCHASING STRATEGY
* LOGISTICS STRATEGY
* HUMAN RESOURCES STRATEGY
* INFORMATION TECHNOLOGY STRATEGY

MARKET PENETRATION STRATEGY
(Stay in current markets with existing products)
INCREASE RATE OF PURCHASE/CONSUMPTION
ATTRACT RIVAL’S CUSTOMERS
BUY OUT RIVALS
CONVERT NON-USERS INTO CURRENT USERS
MARKET DEVELOPMENT STRATEGY
(Find new markets for current products)
ENTER NEW GEOGRAPHICAL MARKETS
FIND NEW USES FOR EXISTING PRODUCTS
FIND NEW TARGET MARKETS
PRODUCT DEVELOPMENT STRATEGY
(Develop new products for existing markets)
IMPROVE FEATURES
IMPROVE QUALITY/RELIABILITY/DURABILITY
ENHANCE AESTHETICS/STYLING
THE 4 “P’S” OF MARKETING
*
*
* MARKETING MIX ISSUES
* Product Strategy
Specifying the exact product or service to be offered
* New or existing product? …for new or existing customers? * Promotion Strategy
How the product or service is to be communicated to customers * “Push” - spend $$$ on promotions and discounts to push products * “Pull” - spend $ to build brand awareness so consumers will ask for it by name * Channel or “Place” Strategy

FINANCIAL MANAGEMENT STRATEGIES
CAPITAL ACQUISITIONS
* Debt Leverage, Stock Sales, & Gains from Operations * Equity financing is preferred for related diversification * Debt financing is...
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