advantage of economic benefits of specialization leads to horizontal differentiation or departmentalization. As intragroup efficiencies increase‚ the inter-unit relationships may suffer as each group focuses on its own goals. Management thus seeks remedy through higher vertical differentiation (creating layers) accompanied by integration of functions under common heads. Like-wise growth may also result in spatial or geographic differentiation. Increased complexity limits top management’s ability to directly
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1. What is the problem statement in the following situation? Employee Loyalty Companies benefit through employee loyalty. Crude downsizing in organizations during the recession crushed the loyalty of millions. The economic benefits of loyalty embrace lower recruitment and training costs‚ higher productivity of workers‚ customer satisfaction‚ and boost the morale of fresh recruits. In order that these benefits may not be lost‚ some companies‚ while downsizing‚ try various gimmicks. Flex leave
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Operations Management Session I - Introduction - Operation Strategy - Competitive Advantage - Time Based Competition By D.G. Mehta B.E.‚ DMS‚ MMM PPT 1 / 9 [pic] PRODUCTION MANAGEMENT (TRADITIONAL APPROACH) BASIC FUNCTIONAL ROLE (Objectives) 1) Fully utilise man & machine. 2) Low Production Cost (Maximum Profit) 3) Production Planning & Control. 4) Control and reward people 5) Wastage Control. DETAIL FUNCTIONS 1) Inventory Control 2)
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should we compete?" True False 3. The goal of a strategic position is to create the largest gap possible between the value that a firm creates through its offerings and the cost required to create these offerings. True False 4. When pursing a differentiation strategy‚ the focus of competition is to add unique features in order to create a level of value creation that competitors cannot easily imitate. True False 5. Value drivers are considered to contribute to competitive advantage even if the increase
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find and exploit all sources of cost advantage. if a firm can achieve and sustain overall cost leadership‚ then it will be an above average performer in its industry‚ provided it can command prices at or near the industry average. 2. Differentiation In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important‚ and uniquely positions itself to meet
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production of above normal rents‚ in that it provides a long-term advantage that is not easily replicated. Sources of competitive advantage: Competitive advantage Competitive advantage Similar products at lower price Differentiation advantage Differentiation advantage Price premium from unique products Competitors’ gained by offering consumers greater value‚ either by means of lower prices or by providing greater benefits and service that justifies higher prices. Porter suggested
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Ann Taylor: Survival in Specialty Retail Founded in 1954 by Robert Liebeskind‚ Ann Taylor starting out in New Haven‚ Connecticut‚ is first stand-alone store. Ann Taylor was considered a store for the busy socially upscale women- polished‚ refined and versatile women. Although Ann Taylor wasn’t a real person‚ her persona lived up to the character of the customer. Ann Taylor has been one of the most popular women’s clothing companies in the United States. Ann Taylor has four divisions; Ann Taylor
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TARGET MARKET JUGOS DEL VALLE The target market of Jugos Del Valle is the group of customers that we will specifically‚ careful selection will be crucial for an effective marketing mix. It has had four main guidelines based on our market research. 1. The target market must be matched to achieve the goals of Jugos del Valle and must go outside with the image of it. You will not be able to sell juice to people who are not looking for a healthy life to reach a mass market for this is
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MANAGEMENT Paper – III Note : This paper contains seventy fifty (75) objective type questions of two (2) marks each. All questions are compulsory. 1. Hawthorne Experiment is related to the (A) Systems theory (B) Classical theory (C) Human relations theory (D) Scientific management theory 2. Cost incurred in the past and is not affected by a current decision is referred to as : (A) Sunk cost (B) Marginal cost (C) Incremental
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Outline 1. Michael Porter’s framework of generic strategies (overall cost leadership‚ differentiation‚ focus) ➢ Describe each of the strategies ➢ Provide examples of firms that have successfully attained as a means of outperforming competitors in their industry ➢ Address how these strategies help a firm develop a favourable position vis-à-vis the five forces ➢ Pitfalls managers must avoid if to pursue successfully these generic strategies ➢ Conditions under which firms may effectively
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