An executive’s functional background can also have a powerful effect on the company’s strategy and focus. In particular, when company executives have backgrounds in “output functions” such as marketing, sales, and R&D, the company tends to emphasize product innovation, related diversification, and advertising. Conversely, when company executives have backgrounds in “throughput functions” such as production and process engineering, the company tends to emphasize automation, up-to-date plants and equipment, and backward integration.
