Explain organizing to implement cost leadership strategies

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Reference no: EM13789498

1. Which of the two approaches used to implement cost leadership strategies seems more reasonable?

2. One way of thinking about orga-nizing to implement cost leadership strategies is that firms pursuing this strategy should be highly centralized, have high levels of direct supervision, and keep employee wages to an absolute minimum. Another approach is to decentralize decision-making authority-to ensure that individuals who know the most about reducing costs make decisions about how to reduce costs. This, in turn, would imply less direct supervision and somewhat higher levels of employee wages. Why is this?

3. Under what conditions would the two different approaches for implementing cost leadership strategies make more or less sense?

Reference no: EM13789498

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