The paper "The Process of Implementing Cost Leadership through Organizational Structure" is a great example of management coursework. If affirm wants to implement cost leadership they will do it through the establishment of functional cost leadership through a functional manager. The chief executive officer of the company will be the only person who shall be having multifunctional duties (Hill & Gareth, 2010). The Cost leadership shall be implemented through the chief executive officer formulation of the strategy to take place and the activities that are involved in the strategy formulation.
The management control systems are characterized by the tight systems, reports that are detailed, the management emphasis on the quantitative goals and the compensation policies. The employees are offered compensation policies as a form of incentives so as to reduce the loss that is incurred in the company. The main objective of the cost leadership, therefore, is the reduction in costs so as to have higher costs as compared to the competitors. The functional managers need to understand who has the cost advantage in the organization. In this way, the manager is supposed to have knowledge of who has the cost advantage and then strategize against however has the cost advantage.
The functional manager then shall assess the source of the cost advantage and be able to deal with it in the appropriate manner. The process of the firm’ s product differentiation through organisational structure, control and compensation policies The organizations have got different ways of managing things. However, there needs to be a clear cut policy to ensure that the policy is not stuck in the middle as compared they seek the incorporation of more than one strategy (Hill & Gareth, 2010).
Differentiation is one way that porter developed from dealing with product control. The organizational policies and the arrangements are needed to reinforce the organizational product differentiation. There is a range of skills and abilities that are required to properly carry out product differentiation these skills include: strong marketing abilities, product differentiation engineering, creativity, product reputation for quality, basic research abilities, technological competencies and the firm cooperation with other channels. The organization is required to have very strong marketing capabilities. This will make it possible for the organization to properly differentiate the product in the market form other similarly related products (Hill & Gareth, 2010).
There is also a need for the product development team of highly skilled and creative employees. The employees should ensure that the product that is developed is of the highest quality possible. The employees should also be awarded incentives so as to curb the issue of loss through the product. The organization should ensure that the social amenities such as housing, office environment is of the best quality.
This will, in turn, attract investors and top-notch employees to the organization. In conclusion, the product differentiation strategy should ensure that the product is placed in the market higher than the other products currently available. The consumers of the product should be able to uniquely pick the product amongst many others in the market due to its outstanding qualities.