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
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
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
The skills and expertise of sales and marketing can contribute directly to a l...
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This document was uploaded on 04/02/2014.
- Spring '14