Wednesday, 18 December 2019

Unit 13: Functional and Operational Implementation


Unit 13: Functional and Operational Implementation

Functional Strategy is concerned with developing and nurturing a distinctive competence to provide a company or business unit with a competitive advantage.

Functional strategies are essential to implement business strategy.

Functional policies will ensure that the strategies are carried out as intended and that the different functional areas are working towards the same ends.

Companies have plans and policies that cover nearly every major aspect of the firm.

Operations strategy plays a crucial role in shaping the ultimate success of a firm.

It enables an organisation to make optimal decisions regarding product, production capacity, plant location, choice of machinery and equipment, maintenance of existing facilities and host of other aspects of production.

Personnel policies are guides to action.

Brewster and Ricbell defined HR policies as “a set of proposals and actions that act as a reference point for managers in their dealings with employees”.

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.

No comments:

Post a comment