According to Michael Porter, Managers Have Two Basic Ways of Increasing

question 99

Essay

According to Michael Porter, managers have two basic ways of increasing the value of an organization's product: differentiating the product or lowering the costs of making it. Define each strategy and analyze its impact on profits and the entry of new competitors into the industry.

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Definitions:

Individual Differences

Variabilities among individuals in behavior, personality, cognitive abilities, and emotions that make each person unique.

Transactional Leadership

A leadership style that focuses on the execution of tasks and procedures, and the transactions between leaders and followers, typically involving rewards and punishments.

Contingent Rewards

Incentives or rewards that are given based on the achievement of specific performance criteria.

Management By Exception

A management strategy where leaders only intervene in decision-making when performance metrics fall outside of accepted boundaries or standards, allowing for more autonomous operations.