Management Styles and Innovation - Assignment Example

MANAGEMENT STYLES AND INNOVATION Question two On determining whether a firm can deploy cost leadership strategy and differentiation in policymaking, a definition and an analysis of the two strategies become important needed. Firms institute various policies in a bid to outshine their immediate competitors and firms may use a single strategy or deploy various strategies. A look at the two strategies will be the basis of the discussion. Cost leadership strategy involves efficiency and cost are controlled and regulated to outshine competitors. In the strategy, low cost lay basis as they increase customer demand for the product and service. A brand loyalty lays basis on affordability, which the management strategy advocates for low cost. In creating a leading role, a firm secures their position in the market and generally avert possible rivalry form either direct existing competitors or new entries in the market. As a way of satisfying customers, low cost will avert goods returns and negative feedbacks that could arise (Porter, 1980 p35-40). Organizational structure plays a part in enhancing the strategy. A well-organized management integrates the firm’s capital and revenue in a bid to maximize profits and ensure customer satisfaction. The strategy focus mainly on a large number of customers while minimizing in external expenditure. The strategy then realizes profits by maximizing supplies created and attracted by competitive services. Differentiation strategy mainly entails uniqueness of a product and services in the market. The strategy focuses on creating loyal customers by offering services and products according to customer preference but with added features different from their competitors. The customers create a brand loyalty perspective as they fail to find direct replacements and substitutes with similar features. The strategy requires a team of marketers and market researcher to identify opportunity. Reaction to new products by competitors is responded by the introduction of the new service or product with unique features (Barney & Hesterley, 2006 p126-135). The limitation of the strategy as compared to the cost leadership strategy is the fact that it may fail in realization of high market shares. A firm using differentiation creates a specific customer base. The strategy lacks variety and is specific on what they offer. Due to the resources pulled together in ensuring the unique factor, the end prices may be high. High cost in this strategy is aimed at ensuring that the e firm realizes its profit maximization. Expenditure and cost of production is directed to the customer. Various lines of production characterize a firm that combines the two strategies. A single product uses either of the two strategies. Differentiation aimed the higher end of the market while the cost leadership strategy focuses on the lower end of the market and focuses on a larger market share. A firm that delivers a variety of products targeting different markets may deploy both strategies. The strategy will mainly be specific depending on the nature of the product. A firm that uses both strategies boosts both large market shares and brand loyalty forms the customers. A firm’s major objective is profit maximization, which entails maximizing on revenue and reducing expenditure. Question four As much as innovation is encouraged in a given workplace, it is important to set and regulate the manner in which it is carried out. Innovation provides added advantage to both the company and individuals involved. Firms set regulations and at the same time encourage innovation, leading organizations lay basis on internal innovations and incentives given to those creating new ideas for the development of the organization. First budget strength, the firm provides conditions on the proposal of a given individual. When the proposed innovation is evaluated, its economical viability is considered. Its future benefit considered. Innovations may be overwhelming and if adopted without future consideration may lead to future constraint as alternatives may be outsourced due to the failed innovation. The first consideration when setting innovative consideration is its economic benefits. As much as many companies encourage innovative methods, it is important to considered variety before implementing a given plan. Second, the management should set innovative initiatives in an effort of ensuring its relations to the current organizational plans. If an organization chooses to encourage innovations that are not related to the organization, then the firm may face a brain drain and shift of plans to rival companies. The rate of innovation may result to a crisis in the company’s productivity. Much time may be shifted to this innovations and the core objective of an organization. Third, freedom while innovating should be granted to avoid interference while the innovation is at its initial stages. Experiments should be in place before the implementation of the idea. A case study should follow innovation; this will give the company humble time to evaluate how effective the plan may be and at the same time providing the organization time to adapt to the new ideas. Risk taking should be at the case study rather than after implementation (Zachariah, 2011). A firm that encourages innovation, always over shadows their competitors in matters success. Traditional companies involved more in product marketing and innovative methods were not given. Marketing dealt mostly on specific markets with less efforts being involved in creating new markets. (Andrew et al, 2010). While incorporated innovation new opportunities must lay the basis. While encouraging technology, a well-defined organizational plan should be in place. Innovations should be timely. The management should be able to correctly judge what the competitors offer to the market at a specific period. Timely innovational will play a big role in creating unique products and offering improved services. Assumptions and predictions of the market may seam to be beyond reality and the firm should provide measures to act as an alternative while offering a platform for innovation (Zachariah, 2011). In conclusion, a firm must be in prime position to identify its weakness and strength by doing so the firm will be in a good position to identify its needs and be able to counter them. a firm should set out measures aiming at controlling the activities of a firm by regulating innovation, the firm will have time to ensure adoption or rejection of a given project. Question six While ensuring profit maximization, a firm involves its self in diversification. Diversification refers to a system where a firm extents its product line to cater for various brands. The aim of the firm is to offer a range of products to its customers. Diversification ensures a company acquires a large market share. A firm always specializes on a major product and included minor products in an effort of supplementing its profitability. Diversity ensures a company to enjoy economies of scope; they include spreading of resources, advantages that are associated to skills and operational advantages. In diversification, a firm presented itself with the opportunity to utilize its idle capacity fro the economic benefits of the firm. The firm’s diversification brings to the firm added revenue that would have rather been unutilized by the previous mode of production. Increase in production result to higher revenue, which enhances the firm to grow according to its strategic plans. The growth of a firm will enable it compete with larger organizations and multinationals. The growth of a firm brings with it increase in the market share. By utilizing idle capacity, a firm may shift from a small and medium enterprise to a firm listed in the stock exchange. Stock markets increase the value of the company (Markides, 2000). By diversification, a firm employs more workers and investment in different technologies. Investment in technology increases the output of a firm and improved marketing strategies that will entail the entire activity of a firm. It becomes advantageous marketing an organization rather than marketing a single product. While diversifying a firm utilizes the available labor and management personnel (Hirschey, 2000). This will save the company on expenditure associated to administration. Funds then channeled are to the expansion strategy. Diversification drives a firm from a global product perspective to an international company involved in a wide range of product. The strategy also provides synergies in their line of production, I that customers are provided by a range of products under the same company brand. It increases sales and gives the company an added advantage compared to their competitors. While shipping product to the international market, the firm may ship various brands using a single container hence saving on cost that could be incurred while shipping a single unit. Saving on cost relates directly to increases revenue. The firm deploys various strategies to maximize profit by increasing efficiency distribution and minimizing on cost (Markides, C.2000). A firm realizes economies of scope while investing in various lines of production. They result to innovation and additional skilled personnel. As a result, the firm increases its revenue collection. In that long run, the firm increases its competitive age (Hirschey, 2000). A healthy competition result to improved technologies that later on improves output quality. A large market share inspires a company to offer Initial Public offer to its shares. The nature of administration then changes to accommodate the public. The three modes in which a company may realize economies of scale depend on the market response a negative response will directly influence the company’s position. Extra question Migration to new trends in management and adoption of technology describes the future of management. Future management describes devolution in that future manager will tend to consult and integrate the juniors in matter decision making. A consultative manager is an ideal manager for the future of business organization. The future of business entails departmental independence, in that decisions made are only supervised and not influenced by none democratic manager. The hierarchy of future leadership will entail gender equality and consultations done on a level ground rather than a horizontal platform. A democratic management style provides room for innovation and share of ideas by staff of a given organization without fear of intimidation. While referring to consultative management, both players in the field are affected. A manager should be able to reflect the image of a company. The manager should be able to coordinate the organizational framework without affecting its functionality. Team building has been a custom of previous management and little has been done to teach the lower hierarchy on matters management. According to Malone (2004) future manager would involve himself in ensuring the staff is equipped with management skills, this will assist the organization and save on costs used in supervising worker while at work. Traditional managers have in a way or the other involved them self in self marketing rather than marketing the organization hence a firm becomes a one man show, an ideal 2020 manager will involve him/ herself on a guidance role rather than self marketing. Coordination in the management field is important as it provides a framework where various management traits are combined to form a successful outcome. A manager should posses leadership and mentorship skills, the ability will enable them invest in nurturing young aspiring individual to join the field and encourage innovation. The last trait of a future manager is a transformational leader. The type of manager is one whose presence usually influences the performance of a company. a manager should be able to identify shortcomings of a company and propose ways to improve their performance. A well-organized management team should be able to identify opportunities provided for by the market and venture in them without constraining the budget allocated in a given financial. Strategic plans always include new ideas with a limited amount of resources (Bradford & Cohen, 1984). During class, management traits including traditional and emerging styles have been studied. The entire course has provided various investment opportunities available with respect to innovative modes. The course provided a wider perspective of how management and leadership is changing. New inventions have transformed the entire business world. Various departments under a firm act as a unit in a bid to ensure they realize success. Looking on the entire scenario in which the market remains demanding while marketing strategies and product involvement change, it is high time to adopt various means. Traditional specific methods where considered superior while implementing but changing times provided an equal playing ground and policies are decided based on agency of the matter. Reference Andrew, et al, (2010). Innovation 2010: A Return to Prominence and the Emergence of a New World Order. Boston, Boston Consulting Group Barney, J.B. & Hesterley, W.S. (2006). Strategic management and competitive advantage- Concepts. New Jersey ,Pearson Prentice Hall Bradford, D & Cohen, A ,.(1984). Managing for excellence: the guide to developing high performance organizations. John Wiley, New York Hirschey, M. (2000). Managerial Economics. New York, Centage Malone, W.T. (2004). Future work: How the New Order of Business will shape your organization, Your management style and your life. Boston, Harvard business school Publication Markides, C. C,. (2000). Diversification, Refocusing, and Economic Performance. Boston, The MIT press. Porter, M.E. (1980). Competitive strategy: techniques for analyzing industries and competitors. New York, Free Press. Zachariah, F. (2011 June) The Future of Innovation: Can America keep pace? Time, 177(23) . Read More