a. The business should have a cost advantage that is not easily or inexpensively imitated.b. Managers should consider making those product or service innovations that are mostimportant to customers.2. A differentiation strategy involves attempting to develop products and services that areviewed as unique in the industry.a. Differentiation may occur in brand image, technology, customer service, features, quality,and election.b. Costs are not as important as product or service uniqueness.3. A focus strategy entails specializing by establishing a position of overall cost leadership,differentiation, or both, but only within a particular portion, or segment, or an entire market.Formulating functional-level strategyA. Strategies at the functional level are important in supporting a business-level strategy.B. Functional areas develop the distinctive competencies that lead to potential competitive advantages.Strategy ImplementationStrategies at the functional level are important in supporting a business-level strategy. Functional areasdevelop the distinctive competencies that lead to potential competitive advantages.Strategy implementation includes the various management activities that are necessary to put the strategyin motion, institute strategic controls that monitor progress, and ultimately achieve organizational goals.A. Managers need to synchronize major factors within an organization needed to put a chosen strategyinto action.1. Technology is the knowledge, tool, equipment, and work technique used by an organizationin delivering its product or service.2. Human resources are the individuals who are members of the organization.3. Reward systems include bonuses, awards, or promotions provided by others, as well asrewards related to internal experiences, such as feeling of achievement and challenges.B. Managers need to be able to monitor progress through strategic control.Strategic control involves monitoring critical environmental factors that could affect the viability ofstrategic plans, assessing the effects of organizational strategic actions, and ensuring that strategicplans are implemented as intended.Strategic control systems include information systems that provide feedback on the implementation andeffectiveness of strategic plans.