What is functional strategy

Solution (By Examveda Team)

Functional strategy - organizational plans prepared for various functional areas of a company's organizational structure (e.g., marketing strategy, financial strategy, production strategy etc.). Functional strategies can be part of overall corporate strategy or serve as separate plans of strategy cascading/implementation within a functional area.

Some common functional strategies are:
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.).

others, such as : research and development (R & D) strategy, investment strategy, etc.