Chapter 7 - Organisational Strategy In Global Environment


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Unformatted text preview: tion should: Perform functional activities at a cost lower than that of its rivals, or Perform functional activities in a way that clearly differentiates its goods and services from those of its rivals Strategies to Lower Costs or Differentiate Products Differentiate The manufacturing function can lower the costs of production by pioneering the adoption of the most efficient production methods. The human resource management (HRM) function can lower costs by designing appropriate control and reward systems to increase employee motivation and reduce absenteeism and turnover. Functional-level Strategy Functional-level The materials management’s just­in­time inventory systems, computerized warehousing, purchasing managers’ skills in developing long­ term links with suppliers and distributors, and fostering of an organization’s reputation can lead to a low­cost or differentiation advantage. Functional-level Strategy Functional-level The skills and expertise of sales and marketing can contribute directly to a l...
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