1. Functional Strategy Functional Strategy:
The approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity.
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

2. Functional Strategy Sourcing Decision: Outsourcing –
Purchasing from someone else a product or service that had been previously provided internally.
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

3. Proposed Outsourcing Matrix
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

4. Marketing Strategy Marketing strategy –
Involved with pricing, selling, and distributing a product.
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

5. Marketing Strategy Market development strategy –
Capture a larger share of existing market through market saturation and market penetration
Develop new markets for current products
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

6. Marketing Strategy Product development strategy –
Develop new products for existing markets
Develop new products for new markets
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

7. Marketing Strategy Advertising or Promotion strategy –
Push marketing strategy
Investing in trade promotion to gain or hold share
Pull marketing strategy
Investing in consumer advertising to build brand awareness
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

8. Financial Strategy Financial strategy –
Examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action.
Maximizes financial value of the firm
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

9. R&D Strategy R&D Strategy –
Deals with product and process innovation and improvement
Choice:
Technological leader
Technological follower
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

10. Research and Development Strategy and Competitive Advantage
Technological Leadership Technological Followership
Cost Advantage
Differentiation
Pioneer the lowest cost product design.
Be the first firm down the learning curve.
Create low-cost ways of performing value activities.
Pioneer a unique product that increases buyer value.
Innovate in other activities to increase buyer value.
Lower the cost of the product or value activities by learning from the leader’s experience.
Avoid R&D costs through imitation.
Adapt the product or delivery system more closely to buyer needs by learning from the leader’s experience.
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

11. Operations Strategy Operations strategy – Determines:
How and where product is manufactured
Level of vertical integration in process
Deployment of physical resources
Relationships with suppliers
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

12. Operations Strategy Manufacturing strategy –
Affected by product life cycle
Job shop
Connected line batch flow
Flexible manufacturing system
Dedicated transfer lines
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

13. Operations Strategy Manufacturing strategy –
Movement from mass production to:
Continuous improvement
Modular manufacturing
Mass customization
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

14. Purchasing Strategy Purchasing strategy –
Obtaining raw materials, parts and supplies
Basic Purchasing Choices:
Multiple sourcing
Sole sourcing
Parallel sourcing
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

15. Logistics Strategy Logistics strategy –
Flow of products into and out of the process
Three current trends:
Centralization
Outsourcing
Use of the Internet
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

16. HRM Strategy HRM strategy – Addresses issues of: Low-skilled employees
Low pay
Repetitive tasks
High turnover
Skilled employees
High pay
Cross trained
Self-managing teams
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger

17. Information Systems Strategy
Technology to provide business units with competitive advantage
Prentice Hall, 2004
Chapter 7
Wheelen/Hunger