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Unformatted text preview: owcost or differentiation advantage.
R&D can reduce costs by developing cheaper ways of making a product. Low-Cost and Differentiation
Advantages Functional-level Strategy
Functionallevel strategy and structure
– According to contingency theory, each function should develop a structure that suits its skills and resources.
– In the most effective organizations, each department (production, sales, and research and development) need to develop its own way of responding to its environment. Structure in Sales, R&D, and
Production FUNCTIONAL-LEVEL STRATEGY AND
Organizational culture: a set of shared values that organizational members use when they interact with one another and with other stakeholders
The importance of culture for functionallevel strategy
If culture is embedded in the daytoday interactions of functional personnel, it is difficult for a competitor to imitate another organization’s culture.
A company that has an effective culture has an important source of competitive advantage. BUSINESS-LEVEL STRATEGY
The businesslevel strategy involves: 1. Selection of the domain the organization will compete in 2. Positioning the organization so that it can use its resources and abilities to manage its specific and general environments in order to protect and enlarge that domain STRATEGIES TO LOWER COSTS OR
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- Spring '14