In: Operations Management
Provide a thorough response to each question, please.
1. Briefly discuss Porter's three competitive strategies and provide an example of an existing business for each strategy.
2. Briefly explain the concepts of line and staff departments and authority.
3. Compare and contrast the Type A and Type B behavior patterns.
Porter's three competitive strategies-
Cost leadership- Here an organization aims to become the producer with lowest cost.This kind of organization focuses over gaining market share by appealing to cost restricted consumers.
Every organization aims for reducing its cost by lowering or removing unnecessary expenses but this strategy allows them to reduce the cost from all overheads. Sometimes these organizations sell their product below average price just to increase their market share and yet they enjoy profitability as their cost is lower than others.
Differentiation- To attain competitive advantage, these oranization involves in producing differentiated or unique products.They emphasizes over their product's uniqueness to attract consumers for gaining the matket share. In this strategy , organizations target large market to get involve in differentiation at wider scale
Focus- This is further divided into two parts- Cost focus and Differentiation focus.
Under cost focus- organization focuses over advantage of low cost in small segment of the industry. For example a budgeted food items stocked by small local supermarket.
Under Differentiated cost- organization strategise the product differentiation or develop their product's uniqueness to target small level or in small segment of the market. Example- Craft beers, which attracts consumers more than that of large breweries product.
2. Line and Staff organization is the phenomenon where Line refers to authority of superiors who command the subordinates and they are accountable to the functions entrusted to them whereas staff officers are those who are specialist of their segments and give expert advice to line officers. Line officers and their department deals in decision making whereas Staff department authorises to give their expertise to Line department.Line-Staff organizational structure is appropriate for rendering complex organization while ensuring no sacrifice in managerial authority.
3.Type A and Type B are two distinct personality theories. Type A is totally different from Type B where type A personality is stress prone,impatient and always in hurry whatever they do whereas Type B is comparatively less stress prone and relaxing, they are easy going one and have lots of patience.
Type A is hypersensitive to time and very competitive and goal oriented. They don't like to kill time so generally they do multiple works at a time whereas Type B are more tolerant and reflective and posseses more creativity.