Third entry of the mini series of posts in which we have as protagonists the different levels of strategic development. This time (part 3) we will look at the so-called functional strategy.
This type of strategy is implemented at the operational level within an organization. Its objective is to facilitate the flow of strategy at the corporate (or commercial) level.
Levels of strategic development: Functional strategy
We can distinguish several types of strategies focused on a functional concept, such as:
Human resources strategy
Human resources have undoubtedly acquired a fundamental importance nowadays. In this type of strategy, the objective is to describe perfectly how the organization will manage its human resources to achieve its strategic objectives.
Financial strategy
Finance is another of the strong points when it comes to strategically managing an organization. Therefore, this type of strategy must be aligned with the company’s growth and innovation objectives. There is no doubt that this cohesion is absolutely essential.
Research and Development Strategy
The R&D strategy must specify how research and development contributes to the corporate strategy through the development of competencies. This will be through new products, services and business models.
Marketing strategy
It can cover many areas, from customer identification to market research and customer acquisition through different channels. The main objective of this type of strategy should be to be able to generate demand for the company’s products and services.
Production strategy
Production strategies should focus on supply chain management, operations planning and the overall manufacturing system. The main objectives are to improve quality, minimize production costs and increase quantity.
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