PRESENTATION

ON

FUNCTIONAL AND
OPERATIONAL
IMPLEMENTATION
 FUNCTIONAL STRATEGIES
Functional strategy deals with a relatively restricted plan which provide
the objective for a Specific function ,for the allocation of resources
among different operations within that functional Area and for
enabling a coordination between them for an optimal contribution to
the achievement of the business & corporate-level Objective.
Functional strategies are derived from business & corporate level
strategies & implement through functional & operational
implementation.
Strategy implementation is to align & fit the activities & capabilities of an
organization with it’s strategies.

 To implementation &align the functional

strategies two fit are there
1. VERTICAL FIT
2. HORIZONTAL FIT
Vertical fit
The consideration of vertical fit leads us to define functional strategies in term of
their capability to contribute to the creation of a strategic advantage for the
orgnisation .we have the following functional strategies
Strategic marketing management means focusing on alignment of marketing
management with in an orgnisation with it’s corporate & business strategies.
Strategic financial management means focusing on alignment of Financial
management with in an orgnisation with it’s corporate & business strategies. To
gain a strategic advantage.
Strategic operation management implies focusing on alignment of operation
management with in an orgnisation with it’s corporate & business strategies to gain
a strategic advantage.
Strategic human resource management means focusing on the alignment of
human resources management with in an orgnisation with it’s corporate & business
strategies to gain a strategic advantage.
Horizontal Fit
horizontal fit means that there has to be an integration of the operation activity
under taken to provide a product or service to a customer .these have to take place
in course of operational implementation.
Operation implementation is the approach adopted by an orgnisation to
operational effectivness.when a orgnisation perform value –creating activity
optimally and in a way which is better than it’s compititor,it result in operation
effectiveness.
FUNCTIONAL PLAN & POLICY

 FOR effective implementation, strategist have to provide

directions to functional managers regarding the plan &
policy to be adopted.
 Need of function plan & policies
 Function plan & policy are developed to ensure that
1. The strategic decision are implemented by all part of org.
2. .there is a basic availability for controlling activity in the
different functional area of business.
3. The time spend by functional manager on decision- making
may be reduced as the plans lay down clearly what has to be
done & the policies provided the discretionary fame work
within which decision needed to be taken. ordination across
the different function take place where necessary.
Financial Plans and Policies

The financial plan & policies of an orgnisation are related to the

availabilty,usages,and management of funds
Source of funds.
Plan & policy related to the source of funds deals with
Financing & capital mix decisions.
Usages of fund
Plan&policies related to the usages of fund deals with
investment & assets-mix decision.
Management of funds
The major factor for which plans & policies related to the
management of funds have to be made are :the system of
finance,accounting,and budgeting ;management control
system ;cash credit & risk management ,cost control,tax
planing
Marketing plan and policies

 Plan and policies related to marketing have to be formulated

and implemented on the basis of 4Ps’ of marketing mix that is
 Product
 Price
 Place
 Promotion