Functional level strategies are the goals and related actions linked to specific departments in support of the corporate level strategy. They develop the results the business owner wants to see, from the daily operations in the different departments of the company.
Operational level strategies cater to the entire business’s activities and are focused on resource application and allocation. Operational level strategies usually are driven by the overall business approach and are designed to maximize the overall effectiveness of the production, all the while minimizing risk to the company goals.
Three Levels of Strategy
The highest level is the corporate strategy, and it answers the fundamental question of what the business aspires to achieve. It also defines the market the company is operating within and plans how to best approach these markets. The second level is the business strategy, which considers the corporate strategy while defining particular trends for each market. It also illustrates how each business unit will implement the strategy.
The functional strategy encompasses the day-to-day activities, so the company maintains its overall mission. It also deals with the relationships between the project teams and the way the functional objectives are met.
Functional Level Strategy in an Organization
The functional level strategies have to reflect the business, and reaching corporate goals requires the involvement of several functional areas. Therefore, to increase market share, the functional level strategy might include marketing to improve brand recognition, quality improvement for the end products and the hiring of specialized personnel. When these strategies are met, departmental management can create individual assignments geared to support sectoral objectives. The functional level approach should have the following key variables:
