Question

In: Operations Management

‘Different organizational implementation tools should be designed in order to facilitate the implementation of different types...

‘Different organizational implementation tools should be designed in order to facilitate the implementation of different types of strategy’.

Do you agree with this statement? Why or why not? Please illustrate your answers with the two basic generic business-level strategies.

Solutions

Expert Solution

The above statement is true. Different organizational implementation tools should be designed in order to facilitate the implementation of different types of strategy.

The companies adopt various strategies to remain competitive into the market. For an example in cost leadership strategy, the companies plan to lower its cost than the competitor’s without affecting the quality so that they can reduce their cost to get competitive advantage over rivals. when the cost is lower they can use it for more profit generation or lowering their prices of the product lower than the competitors.

But for that appropriate tool has to be used. It can ot be achieved in general conditions. The companies have to update their technologies, procure the raw material at best lowest possible rate with good quality etc.

This is good for some companies but not for all. For an example if apple is adopting cost leadership strategy then it will lose its edge because it is known for its innovative product. So this strategy is not suitable for apple. They have designed their tools not for lowering the cost but being innovative.

Further other strategies like differentiation strategies where the companies make their products different than the existing products. For them special tools will be needed, they have to invest in research and development.

           

The companies can go for the niche market as well for revenue generation.

so the tools like Strategic Advantage Profile, Organizational Capabilities Profile etc are used as a tool for getting the desired strategies.


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