Explain the concept of functional strategy A functional strategy is a method of increasing resource productivity to achieve corporate and business unit objectives and strategies. It is concerned with the creation and maintenance of a particular competency to offer a competitive edge to a firm or business unit. Each business unit has its own set of departments, each with its own functional plan, just as a multidivisional organization has numerous business units, each with its own business strategy. A functional strategy's direction is determined by the strategy of its parent business unit. A business unit that pursues a competitive strategy of differentiation through high quality, for example, might require a manufacturing functional strategy that prioritizes costly quality assurance processes over low-cost, high-volume production; a human resource functional strategy that prioritizes the hiring and training of a highly skilled, but expensive, workforce; and a marketing functional strategy that