The focus of functional strategy is:

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BlackTom AI · Accepted Answer

The question asks: The focus of functional strategy is:

Option a: Maximizing resource productivity. This is the most fitting choice because functional strategy concentrates on optimizing performance within a specific function (e.g., production, marketing, HR) to make the best use of resources, processes, and capabilities. It deals with how to improve efficiency, effectiveness, and utilization at the departmental level rather than broad corporate directions.

Option b: Scanning the environment. Environmental scanning is typically a strategic (corporate or business-level) activity aimed at identifying external opportunities and threats; while important, it is not the core focus of functional strategy, which operates at the internal function level.

Option c: On overall cost leadership differentiation. Cost leadership and differentiation are generic competitive strategies that operate at the business level, guiding how a firm competes in its markets. They are not the primary concern of a single function’s strategy, though functions must align with the chosen generic strategy.

Option d: On stability, growth, or retrenchment. These are overall corporate or business-level strategies describing the firm’s directional choices. Functional strategy translates those directional aims into action within each function, rather than defining the broad directional stance itself.

Option e: Achieving overall direction. This relates to corporate- or business-level strategic direction rather than the specifics of how each function should operate internally. Functional strategy translates direction into function-specific plans and actions.

In summary, each incorrect option reflects a higher-level or different focus (environment, competitive stance, broad direction) that is not the essence of functional strategy, which is best captured by optimizing resource productivity within each function.

254_MGT4800_Strategic Planning_Fall 2025

The focus of functional strategy is:

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