Management and Organizational Studies 4410A/B Lecture Notes - Lecture 4: Cost Leadership, Process Engineering, Vertical Integration

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: Raymond Leduc

Document Summary

4410 lecture 4: price is what you sell the product for, cost is everything the company puts into it, low cost, allo(cid:449)s (cid:455)ou to offer lo(cid:449) pri(cid:272)e (cid:271)ut do(cid:374)"t ha(cid:448)e to i. e. price of oil, approx. If you differentiate in a meaningful way, you can charge more: you should(cid:374)"t differe(cid:374)tiate if it (cid:272)osts (cid:455)ou (cid:373)ore tha(cid:374) (cid:455)ou (cid:272)a(cid:374) (cid:272)harge, each area of porter"s generic strategies are good, if it makes sense for the company. I(cid:373)porta(cid:374)t to u(cid:374)dersta(cid:374)d the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s positio(cid:374) (cid:449)ithi(cid:374) the i(cid:374)dustr(cid:455: fir(cid:373) positio(cid:374)s itself (cid:271)(cid:455) le(cid:448)eragi(cid:374)g it"s stre(cid:374)gths, michael porter: firms strengths fall into 1 of 2 headings, 1. Imitation by competitors: focus strategy, concentrates on narrow segment tries to achieve either a cost advantage or differentiation, risks, changes in the target segments. Increase in relative market share, increase in cash. Types of organizational designs: traditional designs, 1. Functional structure: a design that groups similar or related occupational specialties together, 3.