Page 255 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 13: Functional and Operational Implementation

13.6 Keywords Notes

Capacity Planning: Process of forecasting demand and deciding what Resources will be required
to meet that demand.

Cash flow: The excess of cash revenues over cash outlays in a given period of time (not including
non-cash expenses)
Functional Strategy: Approach taken by a functional area to achieve corporate and business
unit objectives and strategies by maximising resource productivity.
Human Resource Planning: The ongoing process of systematic planning to achieve optimum
use of an organisation's most valuable asset - its human resources.
Industrial Relations: Interaction between employers, employees, and the government; and the
institutions and associations through which such interactions are mediated.
Inventory Management: Management of inventory consisting of raw materials, work-in-process,
goods in transit, finished goods etc.

Operations Management: Design, execution, and control of a firm's operations that convert its
resources into desired goods and services, and implement its business strategy.

13.7 Self Assessment

Fill in the blanks:
1. ……………….. strategy outlines the competitive posture of its operations in an industry.

2. ………………….. will ensure that the strategies are carried out as intended.
3. A company often frames bonus and dividend policies based on availability of
……………………….

4. Marketing strategy includes the decision regarding the four Ps referred to as
the…………………….
5. Decision related to logistics comes under the purview of……………………..strategy.
6. Some organisations that prefer to build smaller capacity to take care of normal
requirements, meet peak demand by way of imports or …………………………
7. Plant location is essentially ………………………. decision that has a long-term significance.
8. ABC Analysis is a technique used for…………………………….
9. ……………….is the process of recruiting applicants and selecting prospective employees.

10. The main purpose of performance management systems is to facilitate …………………….
13.8 Review Questions

1. Analyse the importance of functional strategies. Are they more important than business
strategy?

2. Suppose you are the manager of a newly established garments company. You have a
business strategy ready for you that stresses on competitive positioning and proper
stakeholder management. Draft out a proper functional strategy for your company, if the
objective is to establish a brand name in the long run.
3. Discuss the functional strategies required in key functional areas of business.

LOVELY PROFESSIONAL UNIVERSITY 249