Yet for functional strategies to be truly functional and serve the larger purposes of the organization all strategies must be complementary, otherwise different departments may compete with one another and even subvert one another's objectives. If a marketing department views its functions as more important than the technological development of the products it is promoting, its internal strategy may undermine rather than support the larger organization. A lack of perceived and real interdependence between functional strategies can result in ineffective use of resources.
However, it is true that not all functionally strategies will be equally seamless, in all firms. In the case of some firms, there is a great deal of cross-communication between different departments, and functional areas are only...
In other firms, functional areas are closely segmented, and thus there will be less communication and possibly a more unique philosophy or approach for each internal strategy. An it department may be more free-wheeling than a financial department at a firm. The firm's organizational structure will influence the degree to which functional actions are seamlessly interrelated. A firm that makes use of interdepartmental work teams, where members of functional departments are assigned to work together will have a more closely integrated strategy than firms with organizational structures strictly divided according to functionality.
References
Hierarchical levels of strategy (2010). Quick MBA. Retrieved February 19, 2011 at http://www.quickmba.com/strategy/levels/
