Strategic Management: Formulation and Implementation

Research And Development Strategies

The need to develop or improve products and production processes is met by the research and development (R&D) function. Figure 2-7 outlines several questions that need to be considered in developing an R&D strategy.

The most important research and development strategy issue concerns the relationship of R&D to corporate strategy. The more important innovation is to the strategy of the organization, the more implementation will require consideration of strategic issue in R&D.

Moreover, if R&D is part of an aggressive new product development strategy, a series of decisions logically follow from such a link, including funding levels, project selection decisions, and the structure for R&D. If R&D is used primarily for process improvement, the decisions are more conservative.

Cross-functional Implications Of Strategy Implementation

Failure to integrate strategies is failure to consider the cross-functional implications of strategy when the critical issues of strategy are appraised.

Cross-functional implications of strategy can be identified by considering the following:

Careful consideration of the strengths and weaknesses of the organization includes a review of the functional areas which should alert managers to potential conflicts.
A strategy which is comprehensive should spell out certain major trade-offs.
Communication of the strategy is a way of giving functional areas the same information.
Functional managers who have some part in the process of formulating and implementing strategy are in a better position to understand what is required of them.
Close lateral relations
As functional specialists have closer contact with each other, trade-offs can be better assessed.
Multifunctional experience
Many organizations require that managers spend part of their tenure in functions other that their own specialty.
As part of the implementation process of identifying strategic issues for each of the functional areas, the cross-functional implications of a change in strategy should be addressed.