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Functional Strategies
Deals with a relatively restricted plan designed to achieve objectives in a specific functional area, allocation of resources among different operations within that functional area and coordination among different functional areas for optimal contribution to the achievement of the business and corporate level objectives.
Vertical Fit
Horizontal Fit
Congruence and Congruence and coordination among coordination among strategies different strategies at same level. at different level.
organization; To control activities in different functional areas of business; To reduce time spent by functional managers in decision making To handle similar situations occurring in different functional areas in a consistent manner; Coordination across the different functions takes place
structure, procurement of capital and working capital borrowings, reserves and surplus, relationship with lenders, banks and financial institutions.
2. Usage of Funds: Investment or asset-mix decisions:
Capital investment, fixed asset acquisition, current assets, loan and advances , dividend decisions etc. 3. Management of Funds: The system of finance, accounting and budgeting, cash, credit and risk management, cost control and reduction etc.
materials supply; inventory, cost and quality management; and maintenance of plant and equipment.
Research and development- product development, personnel and facilities,
level of technology used, technology transfer and absorption, technological collaboration and support.
management, computer systems, software capability and the ability to synthesize information.
Integrative, Systemic and supportive factors Availability of
IT infrastructure, its relevance and compatibility to organizational needs, upgradation of facilities, willingness to invest in state-ofthe-art systems, availability of computer professionals and top management support.
nationalized banks) had to face a tough challenge when the new private sector banks made their entry in early nineties.
The new banks had the benefit of starting on a clean slate
and had started with state-of-the-art technology which in turn helped them save on man power costs and provide better services.
The older banks had not kept up-to-date with technology
and were facing competition of this kind for the first time.
include debit cards, credit cards, international cards, special deposits, demat accounts and any-where-banking. Some of the new services include round-the-clock phone-banking, Automated Teller Machines (ATMs), inter-city, inter-branch banking, net-banking and bill payment services. Computerisation and networking of branches: Many of these branches were also networked so that their customers could be offered any-time, any-where banking services. Risk Management and Capital Adequacy: Many public sector banks were saddled with large non-performing assets (NPAs) and suffered from low capital adequacy. Banks have since put in place stringent Risk Management Systems to address not only credit risk, but also market risk and other operational risks.
References
http://www.etstrategicmarketing.com/Smmarch-a http://www.financialexpress.com/news/sbi-plans-m http://www.thehindubusinessline.com/2007/09/07 Strategic Management and Business Policy by
Azhar Kazmi