Skip to content

CS Professional · Strategic Management and Corporate Finance · Business Policy and Formulation of Functional Strategy

Why is functional strategy considered important for implementing business strategy?

Functional strategy is important because it turns broad business strategy into detailed operational plans for each function and aligns their activities with overall objectives. It supports coordination and execution. It does not replace higher-level strategies or guarantee profit, and functional managers usually contribute to it.

  1. AIt replaces the need for corporate and business-level strategies
  2. BIt provides detailed, operational action plans and aligns each function's activities with overall objectivesCorrect
  3. CIt guarantees profit irrespective of the external environment
  4. DIt is formulated only by the board without involvement of functional managers

Explanation

Functional strategies give specific direction to departments and align their activities with the business strategy, creating coordination. They do not replace higher-level strategies, cannot guarantee profit, and generally involve functional managers who know the operational details.

Did you get it right without looking?

One question tells you little. A timed set on Business Policy and Formulation of Functional Strategy shows your real accuracy, how long you take and where you lose marks.

Practise Business Policy and Formulation of Functional StrategyFree diagnostic mock

More Business Policy and Formulation of Functional Strategy questions