Final answer:
A functional strategy is designed to guide activities within a specific area of a business, such as marketing or finance, and is integral to the development of a company's capabilities within that area.
Step-by-step explanation:
A strategy that guides activities within a specific area of operations is called a functional strategy. This type of strategy focuses on the key functions of a business—such as marketing, finance, human resources, and research and development—and is concerned with developing and nurturing a company's capabilities within each area to support the overarching business and corporate strategies. It is one of the three main levels of strategy in an organization, with the other two being business strategy and corporate strategy.