Functional strategies in strategic management are usually a part of overall

corporate strategy prepared for various functional areas of its organizational

structure (i.e. production, marketing, sales). It helps managers in focusing company's
activities to its major functional areas of activity (so called: key success factors). Most
common functional strategies used in management are: financial strategy, marketing
strategy, production strategy, human resources strategy (personnel strategy) and research
and development strategy.

.Functional level strategy in marketing Focuses on promotional techniques and their

application, and on the price level optimization, problem of distribution (decisions about
choosing distribution channels), structure of production, image of the company, public
relations. Marketing strategies focus also on the product range optimization. Important
part is taking action to achieve the intended market position. Managers promote sales,
determine the advertising budget and the size of the sales staff. Marketing strategy also
deals with public policies (elimination of legal, cultural and organizational obstacles).
Summing up marketing strategy is the most important element of the functional
structure, for the company trying to gain a loyal customer. Functional strategy in
finance Forms the capital structure of the organization through choice of share
structure, debt and bonds) by optimizing financial costs. Debt policy deals with decision-
making about the size of the loan and its forms. The financial structure involves is also
the enterprise asset management. In order to generate optimal revenues, the company
establishes the structure of the investments of previously accumulated cash. It also
provides access to resources. Dividend policy deals with the allocation of income
between the shareholders and for development of the company.
. Functional strategy of manufacturing Strategic management in production deals
with the development of manufacturing methods and improving performance of people
and machines. It is essential for the production planning (determine the place,
production volume and production methods). It has a direct relationship with the quality
of the manufactured products, costs incurred during production does not play a
significant role (are considered secondary). Worth noting is other area of interest:
automation, robotization and flexible manufacturing systems. In a situation of
continuous technical progress, selection of appropriate manufacturing techniques
provide a significant decision problem for managers. Managers must also take into
account various government regulations. i.e. Environmental Protection Agency
requirements)
.Functional strategies in strategic human resources management
Human resource policy focuses on such aspects as: salaries, workforce selection and
evaluation of the results of the work. Employee relations is another dimension of human
resource policy. Also government regulations are taken into account (e.g. the Act on the
rights of the citizens). Typing the respective managers, who will soon be included in the
composition of the executives also apply in this strategy. This is directly related to the
planning of vocational training. Research and development strategy Mainly deals with
product development. Involves decisions regarding the modification of the existing
products and where necessary needed to manufacture new ones on the basis of the
available techniques. Research and development strategy is also focused on the
licensing and conduct of the patent policy for the prevention of the use of the developed
models or generate revenue from their sale. Strong commitment in research and
development are used for the introduction on the market disruptive innovations and new
products.