In: Operations Management
Why should the sole provider of a utility in a country use functional strategy.
The role of functional strategy is very crucial for the development of any organization. The major purpose of functional strategy is to achieve the corporate objective in a specific functional area by means of optimum utilizing resources available in order to maximize the profit. It is very crucial for a business and especially if its a sole provider. This strategy proves support to the overall organization and also sets procedures as to how a functional manager will proceed in order to achieve set goals and objectives.A sole provider of utility must follow this strategy as:
a)To efficiently use the resources available.
b)Since it is a sole provider it must focus on its functionality in order to meet customer demand as well as maximize organizations' profit.
c)Since it is a sole provider means it is active in one functional area hence it must imply corporate-level strategies that specify the outcome that one wants to achieve from the daily operation of that utility.
d)The functional strategy will help to keep on the activities related to the functional areas.
e)This will help the manager to perform better in their area as they will understand what needs to be done and how it needed to be done this will reduce the time spent by the functional manager in decision making.
f)It will help to build competitive advantage as this strategy focuses on the specific area,and since it is a sole provider its major focus will be on the single function that it is providing,hence a better service to the customers will be possible.