Which aspect is a key focus of functional strategy?

A key focus of functional strategy is indeed specific resource allocation for operational units. This aspect emphasizes how different departments or functions within an organization—such as marketing, production, finance, and human resources—define their roles and allocate resources to effectively fulfill the overall business strategy. A well-defined functional strategy ensures that resources are used efficiently and aligned with the organization's goals, which helps in enhancing overall performance and achieving competitive advantage.

Each department must understand its specific objectives and the resources necessary to meet those objectives, which is crucial for optimizing their effectiveness and supporting the broader strategic goals of the company. Resource allocation might include budget distribution, staffing, and prioritization of projects that align with the organization’s strategic direction.

The other aspects mentioned, while important in their own right, do not encapsulate the primary focus of functional strategy. For instance, the overall market competition approach relates more closely to competitive strategy, corporate governance policies fall under management and compliance practices, and financial forecasting pertains to financial management rather than the specific allocation of resources at the functional level.