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This paper goes over some practical methods utilize by a company's numerous practical departments to support the corporate & & competitive technique. The managers play crucial function in forming these methods. This also referred to as functional approach to carry out the techniques for internal departments. This consists of Operation, marketing and finance strategies.
The essential techniques for the advancements of the organizational capabilities of the organisation enterprise are Operations, Marketing and Financing. The managers need to stabilize all 3 techniques for effective result.
In Functional strategy the management associates with make or buy analysis. Where as in Marketing method the management is hectic with their resources and how to designate these resources with optimal opportunities and accomplishing sustainable competition. The last in financing, the management is busy making decision on capital structure.
Operations function need to participate proactively in the tactical decision procedure to track the top management's tactical decisions instructions. And this proactive participation is practical for top management and other functional departments to comprehend the ability and limitations of operations work.
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In this respect, functional pro-activeness becomes an efficient approach to reach the accomplishment of the strategic alignment in between competitive and functional level techniques (Papke-Shields and Malhotra 2001). Relationship with Balance Score care and overheads. The functional strategy do have direct relationship with Balance Rating Card (BSC) and Overhead costs allocation. The well balanced scorecard (BSC), the levels of usage and usage, the impact of particular functions, the most pre-owned metrics and features of effective application of the BSC.
The successful company must have the ability to anticipate changes in operating environment and must be able to respond faster than the rivals. In the very same time maintaining allocation of overheads to manage costs are the essential aspects for the effective operational technique.
To use an appropriate marketing strategy is a critical element for business success. Choosing an effective strategy requires knowledge of what various alternative marketing strategies exist and understanding how they work under varying environmental and organizational conditions (Shaw, 2012). In the case of existing products and markets the Ansoff suggests a penetration strategy. However, there is no meaningful information provided about how to actually use this strategy to penetrate the market. For example, Ansoff (1957, p. 114) says: Market penetration is an effort to increase company sales without departing from an original product-market strategy. In a similar vein Ansoff (1965, pp. 109-110) states:
Marketing penetration denotes a growth direction through the increase of market share for the present product-market. In the case of new product in the market the Author Dean (1951) suggested the strategy as employing low price and high promotion to rapidly build sales and gain market share. This also a penetration strategy may be used with either new or existing products in either new or existing markets; and as Dean proposed, a penetration strategy involves the aggressive use of a combination of marketing mix elements.
Per (Calandro and Flynn 2007) the integrating financial strategy has the power to transform business, as well as the conduct of business in general. In this approach the temporally links critical strategic and financial activities throughout an organization, thus leading to better executive decision-making. This linkage is reinforced through the incorporation of performance measurement into the Financial Strategy framework. The results of this approach include:
a strategy that clearly guides future production; Business decisions that more efficiently allocate scarce resources to execute strategic initiatives; and Measures that effectively and interactively assess performance rather than merely facilitating rewards or punishments.
In today’s business world the success is achieved with all the factors of Operational, Marketing and financial strategies. In fact, just-in-time inventory control, streamlined international operations, and global research and development initiatives are, in many ways, becoming business standards (Calandro and Flynn 2007). Seeking greater levels of efficiency, managers are now beginning to move beyond silos in favor of a more integrated and fluid approach to business. For example, a study conducted by CFO Magazine documented corporate financial practitioners’ desire to play a larger role in strategy formulation. (CFO Magazine, 2004)
Similarly, academicians such as Kaplan and Norton (2004) and Fruhan (1979) have merged strategy and performance measurement in highly innovative and practical ways. This move beyond segregated specialization also exists across the enterprise as the capital markets increasingly look to managers for integrated approaches to competitive initiatives, risk management and communications with stakeholders. Therefore, demand exists for a framework that integrates disciplines such as financial strategy into a more holistic and comprehensive practice (Calandro and Flynn 2007).
Ansoff, H.I. (1957), "Strategies for diversification", Harvard Business Review, Vol. 35 No.5, pp.113-24. Calandro Jr, Joseph and Flynn, Robert Business Strategy Series, ISSN 1751-5637, 2007, Volume 8, Issue 6, pp. 409 - 417 CFO Magazine (2004), "Finance seeks a seat at the strategy table – a report prepared by CFO Research Services in collaboration with Geac", available at: www.cfo.com, Dean, J. (1951), Managerial Economics, Prentice Hall, Englewood Cliffs, NJ, . Fruhan, W.E. (1979), Financial Strategy – Studies In The Creation, Transfer, and Destruction of Shareholder Value, Irwin, Homewood, IL, . Haapasalo, Harri; Ingalsuo, Kari and Lenkkeri, Timo, “Benchmarking: An International Journal”, ISSN 1463-5771, 2006, Volume 13, Issue 6, pp. 701 - 717 Kaplan, R.S., Norton, D.P. (2004), "Strategic management: an emerging profession", Balanced Scorecard Report, Vol. May/June pp.4-7. Papke-Shields, K. E. and M. K. Malhotra (2001),
"Assessing impact of the manufacturing executive's role on business performance through strategic alignment", Journal of Operations Management, Vol.19, pp.5- 22. Shaw, Erick H Journal of Historical Research in Marketing, ISSN 1755-750X, 2012, Volume 4, Issue 1, pp. 30 - 55 Xxx
Functional Finance Strategies. (2016, Sep 02). Retrieved from https://studymoose.com/functional-finance-strategies-essay
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