This defines how the different business functions (for example marketing, finance, operations and human resources) support the corporate and business unit strategies.
For example, a finance functional strategy might define the level of accountability of individual business units and also the organisation’s approach to funding (i.e. generate from operating profits and reserves or through debt). A human resources strategy might define the organisation’s approach to permanent and casual labour, personal training and development, and recruitment.
Functional strategy is a term normally found in strategic management and performance management.
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