Assignment on functional strategy formulation of a company Course Name: Strategy Formulation and Implementation Course no: SIM-510

Submitted to: Dr. M. A. Mannan Professor Department of Management Studies University of Dhaka

Submitted by: Muhammad Abdur Rahman Roll:266 SIM-13th Batch MBA Department of Management Studies University of Dhaka

Date of submission: 13th October, 2012

Overview: In this assignment we were supposed to establish objectives of a companys functional divisions and formulate strategies related to those objectives. A companys functions may include: 1. 2. 3. 4. 5. 6. 7. 8. Production function Marketing function Inventory function Assembling function Packaging function Accounting function Finance function HR function etc.

In the following I tried to establish an objective of each of the functions stated above along with the related strategies to be taken. Here an electric bulb producer is taken as example. a. Objective of production function: To produce 1000 units extra bulbs in 24 hours in next 30 days. Related strategies: 1. Employ 20 more worker. 2. Stock adequate raw materials. b. Objective of Marketing function: To survey additional two cities within next thirty day. Related strategies: 1. Employ 20 more surveyor. 2. Approve additional budget. 3. Plan the survey. c. Objective of Inventory function: To stock 15000 units of bulbs in next 30 day. Related strategy: 1. Place order of 1500 units of bulb each day to the production department for next 30 day. d. Objective of assembling function: To assemble additional 1000 units of ballast each day to meet the production demand for the next 30 day. Related strategies: 1. Employ10 more workers for next 30 day. 2. Approve the budget from accounts department. 3. Order purchase department for adequate raw materials. e. Objective of packaging function: To meet the demand of the inventory department pack 1500 units of bulb each day for next 30 day while the capacity is 1000 units.

Related strategies: 1. Employ 5 more worker. 2. Place order to purchase department for additional packaging materials. f. Objectives of accounting function: To cut overall cost up to 2% within next 6 months. Related strategies: 1. Find the area to decrease cost without loosing profitability. 2. Implement cost cutting strategy. g. Objectives of finance function: To add extra 50 lac tk to the company fund within 6 month. Related strategy: 1. Find internal source. 2. Search for bank loan. h. Objectives of HR functions: To increase employees from 20 to 25 within next 6 months. Related strategy: 1. Advertise for openings. 2. Select suitable candidate. 3. Test the candidates. 4. Issue joining letter to the selected candidates. Conclusion: From above stated objectives and related strategies we can understand how a companys functional objectives could be set and related strategies could be formulated.