Strategic Roles Flashcards
cost leadership
aiming to have the lowest costs or to be the most price-competitive in the market while still being profitable.
the should still be a balance between cost and quality based on the standards of materials and information transforming throughout the transformation process.
can create economies of scale, or the cost advantage created as a result of an increase in scale of business operations, often coming from lower cost per unit inputs and efficiencies with improved technology
goods/service differentiation
tangibility and perishability, customisation, ownership, time between production and consumption, determination of value
standardisation - making of products that are homogeneous or identical
product differentiation - means distinguishing products in some way from those of competitors
ways to differentiate-
- varying the amount of time spent on a service
- varying the level of expertise brought to a service
- varying the qualifications and experience of the service provider
- varying the quality of materials/technology used in service delivery
profit maximisation
the overarching goal of the business, attaining greater sales over costs in marketing
strategic role of financial management
businesses have specific goals they wish to achieve in relation to investment in capital, training staff, marketing and the expansion of operations. these work towards achieving goals in short term and long term.
managing finance effectively
- sourcing financial objectives
- sourcing finance
- preparing budgets and forecasting
- preparing financial statements
- maintaining sufficient cash flow
- distributing funds to other parts of the business
strategic role of human resource management
- seeing an effective workforce as a way of adding value to all areas of their business performance
- focusing on the use of specific HR management strategies to retain, reward and motivate effective and skilled employees to achieve the business’s objectives
