Cost Leadership Essay Example | Topics and Well Written Essays - 500 words

Cost Leadership - Essay ExampleIts lines of communication, management control systems, and compensation systems mustiness all follow a functional or U-form grammatical construction where the CEO acts like an orchestra conductor who coordinates everyone and everything pickings place within the firm. This ensures that all stages of the value chain contribute to the cost leadership strategy and that non a single employee or manager or operating process is out of line. A functional structure is hard work, but it is the best way to ensure that the company implements its strategy without hitches or with as few difficulties as possible.A functional structure is flat, simple, and lean, allowing everyone to focus on a narrow mess of high-value activities. This structure is also highly quantitative because management has to control all costs very closely. This structure also helps everyone maintain a cost leadership focus and mentality, which would be difficult if there argon too many peo ple doing too many things. It would also help that cost savings argon shared with everyone in the organization as incentives.Firms with a cost leadership strategy usually exercise internationally to