Functional Strategy

Functional strategy- selection of decision rules in each functional area. Thus, functional strategies in any organization, some (e.g., marketing strategy, financial strategy, etc.). It is desirable that they have been fixed in writing.

In particular, functional strategies are as follows:

Production strategy( "make or buy") - defines what the company produces itself, and that purchases from suppliers or partners, that is, how far worked out the production chain.

Financial Strategy- to select the main source of funding: the development of their own funds (depreciation, profit, the issue of shares, etc.) or through debt financing (bank loans, bonds, commodity suppliers' credits, etc.).

Organizational strategy- decision on the organization of the staff (choose the type of organizational structure, compensation system, etc.).

May be allocated and other functional strategies, for example, the strategy for research and experimental development (R & D), investment strategy, etc.

In addition, each of the functional strategies can be divided into components. For example, organizational strategy can be divided into three components:

• strategy of building organizations - to select the type of structure (divisional, functional, project, etc.);
• strategy to work with the staff - a way of training (mainly administrative staff), training of staff (in a business or educational institutions), career planning, etc.;
• Strategy wages (in the broader sense - rewards and penalties) - in particular, the approach to the compensation of senior managers (salary, bonuses, profit sharing, etc.).

Organization for the implementation of the strategy at the functional area responsible senior specialist (Ch. Engineer, Director of Finance), at the enterprise level - the general director or director of the department, at the level of groups of companies - a collegiate body (management, board of directors).