So as to bring success in our business, we have to apply four functions of management. These functions include, control, organize, plan, and direct. Control, will help someone to retain his job and stay out of problems. Also one should control his/her actions. By doing this, one is able to do the right thing at the right time (Wiley 2010).
Furthermore, one should take full responsibility. This helps one to bear in mind that he/she has control over his destiny. It also helps one to keep away from making excuses. In addition, one should learn how to direct others. A manager being able to control workers leads to success in an organization. Also, having the capability of being directed is a source of success. As a leader, one should not ignore advice from his/her coworkers (Wiley 2010).
Direct communication is very important. Direct language should be used so as to ensure that your listener understands you. Also, one gets benefits of being organized naturally. This is in terms of how one performs his tasks. By doing this, one impresses the management (minds tool ltd 2011).
In Cost leadership organizations targets producers with the lowest cost within their industry. To drive the cost down, elements of production are used. Cost leaders aims at a broad market. The reason is to allow sufficient sales to cover costs. By offering goods and services at a low cost, one has a competitive advantage. The reason behind is that one can be able to undercut his rivals on price. A company under low cost can price its products at the same cost as its competitor.
By doing this the company can still make higher profits (Wiley, 2010). This kind of action will create a barrier to entry. The action requires huge capital so as to achieve a size that can be competitive in the market. Examples of low cost producers are Wal-Mart and Ryan air. Wal-mart’s size provides it with enormous efficiencies. The efficiencies help it to keep its cost low.
In niche strategies, efforts are made towards a specific segment. An organization becomes popular for its products within its area of specialization. Competitive advantage is formed for the niche market. Also, success may come for being a low cost producer and an example of a company practicing this strategy is Roll Royce. (Minds tool ltd, 2011).
In differentiation strategy, products acquire unique features and characteristics. Differentiated products satisfy the unique needs of the customer. The price of a standard product is always lower than the premium prices. (Minds tool ltd, 2011). For firm to outperform its competitor, the price charged should be greater than total product cost. Competitive advantage allows a company to stand. An organization under this strategy aims at focusing efforts in specific areas. It charges for the additional differentiated value.
For an organization to succeed under this strategy, it is required to carry out enough research, develop and innovate. Also, the organization should have the capability to produce high-quality products (Minds tool ltd 2011). Finally it should have effective sales and marketing. In this relation the market realizes the advantages of the differentiated offerings.
To make a decision on the generic strategy one is to follow needs time. One has to put into consideration the competencies and the strengths of the company. One is required to weigh his strengths and weaknesses. Also one should consider the opportunities and threats he is likely to face. Secondly one should understand the nature of the industry he is in (Minds tool ltd, 2011).
The two tactics used here are making the products to appear more pleasing and also lowering of cost. These tactics help in gaining more customers.
Reference List
Minds tool ltd. (2011): Porters generic strategies: choosing your root to competitive advantage. Web.
Wiley, S. (2010): How using the four functions of management brings business success. Web.