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Functional implementation
It deals with the formulation and implementation of functional plans and polices the emphasis is on relating the formulation and implement of functional plans and policies, and the changes to be made in them, to the strategic changes. Five major considerations for strategist are identified and discussed so that effective integration can take place.
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Similar situation occurring in different functional areas are handled in a consistent manner by the functional managers ; and Coordination across the different functions takes place where necessary
Sources of funds
Plans and policies related to sources of funds deal with financing or capital mix decisions. Plans and policies have to be made for the following major factors: capital structure; procurement of capital and working capital borrowings; reserve and surplus as source of funds; and the relationship with lenders, banks, and financial institutions.
Usage of funds
Plans and policies for the usage of funds deal with investment or asset mix decisions. The important factors that are relevant here are: capital investment, fixed asset, acquisition, current assets, loans and advances, dividend decisions and the relationship with shareholders. Usage of funds is important since it relates to the efficiency and effectiveness of resource utililisation in the process of strategy implementation.
Management of funds
The management of funds can play a pivotal role in strategy implementation as it aims at the conservation and optimum utilisation of fundsobjectives which are central to any strategic action. Organisations which implement business strategies of cost leadership cannot escape the rigors of proper management of funds. In fact, good management of funds often creates the difference between a strategically successful and unsuccessful company.
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2. Pricing: it denotes the money that customer pay in exchange for goods and services. It is important to seller because it represents the return of its efforts. Several price characteristics such as discount, mode of payment etc; affect pricing plans and policies. 3. Place: place ( or distribution ) is the process by which goods and services are made available to the customers. Distribution plans and policies address themselves to issues such as channel to be used; storage inventory management; coverage of markets etc;
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4. Promotion: it deals with the marketing communication intended to convey the companys and its products or services image to prospective buyers. A promotional mix consist of four activities: advertising, personal selling, sales promotion, and publicity.
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2. Operation planning and control: plans and policies regarding this are concerned with aggregate production planning : materials supply ,cost ,etc. the main aim of this is efficiently utilization of resources . 3. Research and development: Plans and policies for R&D deal with product development, personnel and facilities, level of technology used, technology transfer and absorption, technological collaboration and support and so on.
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2. Organisational and employee characteristics: It include factors such as , the corporate image, quality of managers, staff and workers, perception about and the image of the orgenisation as an employer, availability of development opportunities for employees and working condition. 3. Industrial relations: It deals with issues such as union-management relationship, collective bargaining, safety, welfare and security, employee satisfaction and morale
conclusion
Functional implementation is the third aspect of strategy implementation. The functional plans are made in the light of strategic tasks and are meant to act as a course of action. Financial plans and policies are related to the sources, usage and management of funds . Marketing plans and policies are concerned with the 4P`s of marketing mix. operations plan and policies are concerns with the production system, operation planning and control, and R&D. personal plans and policies cover the areas of personnel system, organizational and employee characteristics , and industrial relation .