Cost Leadership Strategy Business Comparison

Cost attractorship Strategy Business similarityIdentify two very different brasss that compete on a cost egestership outline and explain how they do this, i.e. find aside(a) what they do that enables them to keep their prices low.IntroductionWhat is difference between handler and a leader? This is a question that asked more(prenominal) than whizz and answered in umteen sorts. The big difference between manager and a leader is they move peoples who incline or follow them. By the way , many peoples be act in both qualitys , they absorb the vigilance jobs, that they exculpate that they can not acquire heart ,especi solelyy follow them down a diffcult path, and so act as leaders too.1.1 ManagerManagement which is the organization and coordination of the activities of an enterprise in accordance with certain policies and in chance onment of define objectives. A Manager is the person responsible for planning and directing the work of a group of individuals, monitori ng their work, and taking corrective action when necessary. Managers encounter a position of indorsement vested in them by the telephoner, and their subordinates work for them and generally do as they be told.As a manager, in all his work within the scope are under the management and administrative. Managers are paid to get things done, they are subordinates too, often within tight constraints of cartridge holder and money. They thus of course pass on this work focus to their subordinates. report under the administrator is qualified for all work and maintain, without change. As a manager in the management all structures and transcriptions are oriented. All the positions are set by the system, and work is also to go along with the system. In the management system, managers are being controlled, including time, work, and salary. In other way , the manager learn to focus on bottom line and control the fat the attention of all the work off the assembly line. Leadership is m iddling one important component of the directing function. A manager cannot except be a leader, he also needs formal authority to be effective. For any quality initiative to blast hold, senior management moldiness be involved and act as a role model. This involvement cannot be delegated.1.2 LeaderLeadership which is academics affirm great encumbrance in defining what a leader is, or pinpointing the reason back tooth an organisations success. A leader who impact the realization of a goal to achieve a group of people. A leader by its meaning is one who goes first and leads by example, so that others are motivated to follow him. This is a basic requirement. To be a leader, a person must slang a deep-rooted commitment to the goal that he de while extend to achieve it even if nobody follows him.As a leader, should have mod ideas and the establishment of a management system without having to be free of innovation. And this will improve a leaders ability.When a leader of the freed om of reaping and development. Leader development focuses on the development of the leader, such as the personalised attributes desired in a leader, desired ways of behaving, ways of sentiment or feeling. The other set of behaviors is referred to as people-oriented style, where the leader provides a more supportive role in providing a positive work environment. In a group where all the members do not allow the system to be controlled, the development of all are free. And all the members are relying on trust to maintain. Besides , as a leader need take care of his own group and motivate the group. The leaders salutary need to focus on the horizon members only and teach the horizon members to lead their own groups. This will lead the team with team spirit.1.3 Manager and LeaderManagers think incrementally, whilst leaders think radically. Managers do things right, while leaders do the right thing. This means that managers do things by the book and follow company policy, while leade rs follow their own intuition, which whitethorn in work out be of more benefit to the company. A leader is more horny than a manager . Men are governed by their emotions rather than their give-and-take . This quotation illustrates why teams choose to follow leaders. Leaders stand out by being different. They question assumption and are suspicious of tradition. They undertake out the truth and invent decisions based on fact, not prejudice. They have a preference for innovation.A leader is someone who people naturally follow through their own choice, and managers must comply. A manager whitethorn only be passed to give the company time and the power of the true to their own position, not because of his leadership results. A leader may not have organizational skills, but his vision of the people rally hind end him.1.4 ConclusionManagement and leadership are two different ways organizations. Managers use a formal, rational method, and the use of the leaders of the enthusiasm and stimulated emotions. William Wallace is a good example of a wise leader, but must not be considered manager.2.0 IntroductionOperating a successful moving in strategy is based. But there are, of course, different types of crinkle strategy. Among one of the business strategy is cost leadership strategy. Companies choose cost leadership strategies strange features or customer can accept the relatively measuringized product. In other words, with the lowest levels of differentiation and the lowest price competitive. Companies want to be a cost leadership strategy the following must be maintained at lower costs, create value for our customers ongoing efforts to fundament success.2.1 Mass MarketMass trade is product advertising level best exposure to consumers. This is opposite to where the idea of niche markets and sell products is to promote a specific target market. The target market is identified through interrogation as the most likely to buy a product to consumers part of. M ass marketing also operating the business with products caters for all or public which sell considerably catchpenny(prenominal) in the perception of consumers. yield a look in a example that Ramly burger and Macdonald burger , Ramly burger is cheaper than Macdonald burger because Ramly burger just a normal tiny business and Ramly burger just only can buy in Malaysia. Macdonald more valuable because it is an international networking business and their cost is higher(prenominal) , some more need register trademarks and a circularise of fair play enforcements stuffs to protect their rights. Besides , Macdonald is one of the top global brands, branding is big-ticket(prenominal) need a lot of constant advertising.In other way , how does the Ramly burger to keep their price low? By reducing cost , Ramly burger no need to actually rent a land or twist to sell , just need to place at a wayside stall to sell it. The supplier also will be cheaper and this read all the cost lower alre ady. Ramly burger dint provide a good enviroment for customers just at the roadside , so the cost will reduce too. close to more , Ramly burger no need to register trademarks and a lot of jurisprudence enforcement stuffs so their cost will be lower. Besides , process for make the burger is easier and hot also , customers just need to wait about hardly a(prenominal) minutes only. Ramly burger provided a good services such as faster ,cheaper and easier.2.2 Niche MarketNiche market focus on a small population, but specific and clear of all marketing segments. Niches do not exist, but create to determine the needs, desires and not being communicate or not by other companies, and develop and deliver goods or services to meet their requirements. Niche market operating with products cater for a particular segment of consumers which sell at considerably cheap but premium in the perception of consumers. As a strategy, niche marketing is aimed at being a big look for in a small pond ins tead of being a small fish in a big pond. For example , Old townspeople chocolate Shop and Starbucks Coffee Shop , even though Starbucks more expensive than Old Town but still have many peoples volition to pay the premium price for the Starbuckss umber. Starbucks more famous than Old Town , can be compare with the brand. Then, Starbucks provide internet access and punter enviroment compare with Old Town. Old Town cheaper than Starbucks and a lot types of drinks and foods to put too. Starbucks coffee is more expensive because the cost is higher and Starbucks there have varieties of coffee such as latte , cappuccino , espresso , blended and many more.why peoples involuntary to pay premium price for the products? Now the people of this age, everyone says the standard of living, it is necessary to improve their standard of living, with a good eat well, so now the people of this age are willing to spend a lot of money in his own body, so let his comfort. level(p) the Starbucks produ ctss price is higher but still have a lot peoples willing to pay the premium price for the coffees to improve their standard of living. Besides, starbucks coffee has many types of tricks such as latte, cappuccino, espresso, blended and many more, is because of this it has attracted many customers willing to pay premium price for the coffees.2.4 ConclusionWhether expensive or cheap products, will have its own intrinsic value. Usually get a lot of people will put the lowest cost to the most appropriate price. Even then the high value products, it is still the uniform living standards in pursuit of will buy.Cost leadership strategy may have a low customer loyalty little comings, such as price-sensitive customers will switch a low-cost alternating(a) product available. One as the cost leaders reputation may also lead to lower quality status, which may cause a company is difficult to rename itself or product in the next if it chooses to transfer to a different strategy.