The Differences Between Business Strategies and Functional Tactics Essay

1. FUNCTIONAL TACTICSFunctional tactics are the key, routine activities that must be undertaken in each functional area that is human resource management, marketing, finance, productionoperations and research and development to provide the business s products and services. Hence functional tactics translate thought (grand strategy) into action designed to accomplish specific short- term objectives. Every value chain activity in a company executes functional tactics that support the businesss strategy and help accomplish strategic objectives.1.1 Differences Between Business Strategies and Functional Tactics Functional tactics are different from business or corporate strategies in three fundamental waysi. Time horizon.ii. Specificity.iii. Participants who develop them.Time Horizon Functional tactics identify activities to be undertaken now or in the immediate future. Business strategies focus on the firms posture three to five years out. The shorter time horizon of functional tactics is critical to the successful implementation of a business strategy for two reasons. i. First, it focuses the attention of functional managers on what needs to be done now to make the business strategy work.ii. Secondly, it allows functional managers to adjust to changing current conditions.SpecificityFunctional tactics are more specific than business strategies. Business strategies provide general direction. Functional tactics identify the specific activities that are to be undertaken in each functional area and thus allow operating managers to work out how their unit is expected to pursue short-term objectives. Helping ensure that functional managers know what needs to be done and can focus on accomplishing results. Clarifying for top management how functional managers intend to accomplish the business strategy, which increases top managements confidence in and sense of control over the business strategy. Facilitating coordination among operating units within the firm by clarifying areas of interdependence and potential conflict.ParticipantsDifferent people participate in strategy development at the functional and business levels. Business strategy is the responsibility of the general manager of a business unit. That manager typically delegates the development of functional tactics to subordinates charged with running the operating areas...