Look for a company with a description of its functional units. Prepare simple functional level strategy evaluation.

Use the information in the images as a guide.

FUNCTIONAL LEVEL STRATEGY EVALUATION The objective of a functional level strategy is to maximize resource productivity. The different functional units of a company align their objectives based on this context. To elaborate, the marketing unit aims to deliver customer value products or services, the strategy of the finance unit is to maximize the financial value of a company, the human resource unit aims to guide the development and implementation of various programs, and the objective of the production and operation unit is to reconcile a company's resources and market requirements. To achieve its objectives, each functional unit prepares a program, budget, and operating procedure. The functional level strategy evaluation is conducted by the board of directors. There are different approaches to evaluate how a strategy is implemented at the functional level. The approaches include the following: 1. Responsibility center approach 2. Benchmarking approach 3. Management audit approach Responsibility Center Approach A responsibility center is a unit in a company that is controlled by a manager who is accountable based on an entrusted responsibility. The responsibility centers are classified as follows: 1. Revenue center 2. Profit center 3. Cost center 4. Investment center Revenue center. The actual performance of a revenue center is measured based on the amount of revenue it contributes to a company. In other words, it is the amount of gross sales or gross receipts that serves as the primary factor to judge whether a functional unit is favorably operating or not. The cost involved in the generation of revenue is disregarded. The actual revenue is simply compared against the targeted revenue, and the variation is, then, determined. The variation can either be favorable or unfavorable. Profit center. A profit center realizes revenue through the sale of a product or delivery of a Service but, at the same time, incurs costs and expenses. It is evaluated based on the amount of profit (Le., revenue minus costs and expenses) it contributes to a company. The actual profit is compared against the targeted profit. When the actual profit is higher than the targeted amount, the variation is considered favorable.Cost center. A functional unit classified as a co not realize revenue through the sale of a product or delivery for example, is evaluated as a cost center since its primary and implementation of programs by hiring the right people: Of cm\"PIE-insation packages and benefits. It is evaluated based . incurred. The actual costs and expenses are compared against the budgeted amount. Higher costs and expenses compared to the actual amount incurred give an unfavorable performance result. . vestment center is evaluated based on Investment center. A functional unit classified as an in the amount of revenue, profit, costs, and expenses it contributes to a company.- 11311;??? egiphasis is given on how the unit efficiently utilizes the resources animated to it. it is eva us as on the amount of the return on investment (ROI) provided to a comp\"? ' training and coaching, and handling on the amount of costs and expenses Benchmalklng Approach Benchmarking refers to the process of comparing the current products, services, and ' processes against those considered the best. In strategic management. it is. a tool for evaluating the performance of a company against its competitors that are regarded the best or the industry leaders. ' and From but to The concept doesnot encourage a company to imitate other products, _ . improve its current performance using the best practices, products, or performance among Industry players as the minimum standards. . - The following procedures are to be followed when benchmarking: 1. Choose the area, activity, product, or process to be evaluated. 2. Determine the basis of measurement. Select industry leaders. _ Gather information from reliable sources. ' Compare the performance of the mpany with its competitors. Determine the'gap; . . Develop a program to close the performance gap; ' Implement the program. ' ' ' sesame-o: Management Audit Approach A management audit is a systematic process of evaluating the performance, competence, and capabilities of functional level managers. This strategy evaluation approach is usually conducted by the internal audit staff of a company under the supervision of the audit committee of the board of directors. The nature of management audits differs among the various functional units. It includes the evaluation of non-financial activities of the functional unit. - The following are the different types of management audit: . 1. Financial audit - 2. Operation audit. 3. Human resources audit . 4. Marketing audit- Financial audit. A financial audit is conducted to evaluate if the financial statements of a mpany are fairly presented. This includes the evaluation of the appropriateness and reliability the accounting procedures, recording system, and disclosure requirements and the company s "apliance to accounting standards. It involves the examination of different supporting documents in recording business transactions. Operation audit. It is a systematic and comprehensive evaluation of the effectiveness and fficiency of the different operational activities of a company. It is conducted to identify the areas need improvement and institute control, including the possible risks in the structures and operations. Both the financial and non-financial information are needed in the evaluation. Human resources audit. It is a critical evaluation of the performance of the human resource unit and its various activities related to the implementation of policies, programs, and procedures. " is conducted primarily to determine the shortcomings and lapses in the implementation of human resource functions and to take remedial actions. Marketing audit. It is a comprehensive and systematic evaluation of the marketing activities, goals, and objectives of a company. It reviews and evaluates the external and internal marketing environments and the appropriateness of the current marketing strategy and provides the necessary recommendations for improvement