STRATEGIC MANAGEMENT NOTES PART - 3 FOR M.COM, MBA, NET JRF COURSES BY RASHID JRF

 STRATEGIC MANAGEMENT NOTES PART - 3 FOR M.COM, MBA, NET JRF COURSES BY RASHID JRF

**Functional Strategies: Need & Types of Functional Strategy:**

**Need for Functional Strategies:**

Functional strategies are specific plans and actions developed by various functional areas within an organization to support the overall corporate and business level strategies. These strategies ensure that the functions align with the organization's goals, enhance efficiency, and contribute to its competitive advantage.

**Types of Functional Strategy:**

**Human Resource (HR) Strategy:**

- **Purpose:** Focuses on managing the organization's human capital to support its goals and objectives.

- **Importance:** Attracting, developing, and retaining skilled employees are crucial for sustainable competitive advantage.

- **Types:** Recruitment, training, performance management, compensation, employee engagement, succession planning.

**Marketing Strategy:**

- **Purpose:** Aims to create, communicate, and deliver value to customers, resulting in the achievement of sales and market share goals.

- **Importance:** Effective marketing strategies enhance customer loyalty and brand recognition.

- **Types:** Product positioning, target market selection, pricing, promotion, distribution channels, customer relationship management.

**Production Strategy:**

- **Purpose:** Focuses on efficiently producing goods or delivering services to meet customer demands while managing costs.

- **Importance:** Efficient production strategies contribute to cost control and meeting customer expectations.

- **Types:** Mass production, lean production, outsourcing, capacity planning, quality control.

**Research and Development (R&D) Strategy:**

- **Purpose:** Aims to develop innovative products, processes, or technologies that provide a competitive edge.

- **Importance:** R&D strategies drive long-term growth and sustainability by fostering innovation.

- **Types:** Product innovation, process innovation, technological advancements, research partnerships.

**Strategic Alliance:**

- **Purpose:** Involves collaboration between two or more organizations to achieve shared goals.

- **Importance:** Strategic alliances provide access to resources, expertise, and markets that an organization may not have on its own.

- **Types:** Joint ventures, partnerships, collaborations, technology sharing agreements.

**Mergers & Acquisitions (M&A):**

- **Purpose:** Involves combining or acquiring companies to achieve synergies, expand market presence, or enter new industries.

- **Importance:** M&A strategies can lead to increased market power and operational efficiency.

- **Types:** Horizontal integration (same industry), vertical integration (supply chain), conglomerate diversification (different industries).

Functional strategies, including HR, marketing, production, R&D, strategic alliances, and M&A, play a crucial role in ensuring that each functional area contributes effectively to an organization's overall success. These strategies align with the organization's broader goals, enhance efficiency, and provide a competitive advantage in the marketplace.