Cost leadership strategy is often marked as an essential lower-cost strategy in the manufacturing industry. The main focus of this strategy lies in achieving the pricing and not with leadership. Furthermore, a particular cost leader tends to gain a high-end competitive advantage compared with low cost and other organizations. The cost leadership strategy can be achieved by underpricing the competitors and reaching a prominent market share to earn a more significant profit after selling the shares on competitive market rates.
Benefits of Cost Leadership Strategies:
There are many benefits of cost leadership strategies. This is a great gain for a company as low cost is evident in bringing an organization above-average returns from competitive businesses. It is hard to beat organizations based upon the cost needed.
The cost leadership strategy is also used to force the high-end market to lower their rates. Furthermore, the cost leadership strategy will handle cost increases in market value. Finally, a cost leadership strategy is the most vibrant strategy as it allows the company to be in a higher position against its competitors.
Types of Cost Leadership Strategies
Porter’s strategies provide a great way to gain an advantage as they aid in developing a particular brand’s sales and market value. Cost leadership strategy helps in maintaining the organization and eliminate its competitors in the market. However, to achieve this strategy, there are two main ways to develop and execute a Cost leadership strategy:
-Charging usual average industry prices, but increasing profits by decreasing costs.
– Second, to increase market value by decreasing overall prices and making profits on every sale after the cost reduction.
Methods to achieve Cost leadership Strategies.
Cost leadership strategy is a fundamental principle strategy that states the number of production per unit. If there are more units, the unitary cost will decrease. However, it resists the production and sale by having a show of high synchronization. Successful cost leadership strategies allow the company to generate more revenue and sell more units and at a lower margin rate.
The below mentioned specific cost leadership strategies are highlighted, enabling an organization to gain the upper hand and establish its success rates.
Economies of scale:
This is known to decrease production costs by implementing efficient output. In this theory, the organization’s main impact is that of an organization’s size as the lower its value, the more it’s extensive.
Advantages of size:
This idea solely depends upon the money given to suppliers, as this exhibits increasing the extraction of notable deals in the market. This shows the importance of increased purchasing power.
This method highlights increasing the supply of innovative technology to be used for better production methods that result in cutting various costs. This shows that a technology used in business explains its chances of staying in the long run.
The central point in the series is that of a company’s ability to manage the production with complete guide and efficiency. As stated, it is not essential for a company to be extravagantly huge to become a vast leader. In short, it is necessary to maintain focus and efficiency to gain higher chances of becoming a cost leader in the domain.
One of the most critical strategies to reduce the cost rate is its control over its raw material production. In short, other companies can tend to pay a lot for raw material, while another utilizes its resources and reduces the money spent. In other words, the more an organization has access to raw material, the more it is about keeping the costs.
This strategy means getting several tasks done in lesser time. This way, the costs are reduced. Similarly, the company’s efficiency has also increased. It is evident that the less time an organization spends on the production and their tasks, the lesser the cost consumption, thus making the company an effective cost-advantaged company.
If companies implement some of these strategies, there will be more available chances as cost leadership has become more comfortable and legally enforceable.
Examples of Cost Leadership Strategy:
However, individual customers believe that the lower the cost of a product, the lower the quality, which is usually not the case as specific organizations believe in maintaining the rates and becoming the cost leaders in the market.
One of the most significant examples is Walmart, the largest retail company in the world. Studies have shown that they have maintained their prices and utilize the cost leadership theory to keep their prices low. Walmart lowered its operating cost significantly by eliminating its in-house costing by traveling in economy flights than first-class and sharing hotel rooms. Furthermore, employees are said to use minimal prices when cooling or heating buildings. The employees are also kept on lower wages and are provided with less health insurance.
Furthermore, an organization like payless is famous for this kind of strategy. They try to limit the number of employees and insurance policies and serve them to cut all sorts of operational costs. Their slogan suggests that they offer profitable quality brands at affordable prices than their competitors. This cost-cutting strategy enables them to provide a wide range of products and services at very reasonable prices.
One of the most prominent food chains, McDonald’s, applies the cost leadership theory by practicing the divisional theories by recruiting the staff and employees inexperienced and require training as usually they are recruited on a fundamental salary package reduces the in-house costs for them. This allows them to manage their costs and gain a higher number of audiences.
Reward Power refers to the incentives and benefits provided for the obedience and compliance of the organization’s targets. It is a leadership trick used to utilize employees’ capabilities by providing a reward in the form of compensation, bonuses, incentives, a salary increase, or more off days. The benefits are provided to encourage employees to perform more productively. It revitalizes the strength and productivity of performance. It multiplies the performance of the employees.
As George Herbert once said, “service without reward is punishment.” Thus,
Reward power genuinely increases the motivation level of the employees.
Human’s natural inclination toward Reward power:
Even animals such as dogs get used to the owner if the owner frequently remunerates them. Humans have a natural preference and inclination toward reward power. Their propensity toward being compensated when achieving goals makes them better performers. Besides this, if the employee outperforms themselves and excels in the performance, then the reward power seems logical and justified. Thus, humans, intrinsic nature yearns to receive compensation for their performance.
Advantages of Reward Power:
Increasing courage and motivation: The provision of reward power proves to be detrimental in increasing employee motivation and encouragement. The underachievers in the organization seeing the financial compensation provided to the achievers, eventually get the courage to invest their wholehearted performance in outshining the others in the organization. Likewise, their greed for incentives and bonuses works as an energizer that increases the employees’ stamina.
Thus, reward power works as a full-time booster to increase the motivation of the employees.
Increasing contentment of the Employees:
Reward power helps increase the satisfaction and contentment of the employees. The employees feel connected to the organization. Their insecurities about being devalued and underrated tend to be diminished with the provision of the compensation system. Likewise, the employees feel financial security when reward power is used.
Their sense of joy increases, as does their satisfaction with their job. The author of the happiness project, namely Gretchen Robin, said that job satisfaction takes hold of the employee and gives them a sense of control and hold. Thus, reward power provides contentment and satisfaction to the employees of the organization.
Feelings of Job control to the employees :
The organization’s employees feel job security and control, while the reward power is being implemented for outperformance in the organization. Job security and control is essential when it comes to better performance. The employees get involved in the goals and objectives of the organization wholeheartedly. The employees own the objectives. And the equipment of the organization is maintained carefully because of job security. Thus, the reward power provides a sense of security to the employees.
Retention of the Employees :
The retention of employees minimizes the cost of the recruitment of newer staff by double. Reward power helps the organization retain the employees for a longer period.
A long-term relationship between the organization and employee is thus nurtured and developed through incentives and bonuses. Thus, retention of the employees become easier with the provision of reward power.
Increasing competition in the organization:
With the provision of reward power, the organization is subjected to intense internal competition among employees.
The increased competition paves the way for innovative ideas and actions in the organization. Likewise, thinking out of the box becomes easier with the bonuses and compensation. The employees work harder and compete to get more rewards for their work performance in the organization.
Besides this, the competing employees give birth to more innovative ideas in the organization. And innovative ideas help the organization grow rapidly.
Demerits of the Reward Power:
Although there are numerous advantages of the provision of reward power.
But with every advantage comes demerits as well. Following are some of the negatives of the reward system:
Causing resentment amongst employees:
The employees that have been blessed to receive frequent remuneration for their performance might create anguish among passive achievers. This resentment will affect productivity and undermine the abilities of the deprived staff. This anguish among the deprived staff might resultantly cause diminished motivation levels.
Thus, an equal reward power system is necessary to eliminate unjust favoritism in the organization.
Temporary motivation and encouragement:
The remuneration incentives in the form of reward power may become futile in the long run. The motivation may diminish with the immediate provision of the incentives. This will drastically affect the performance of organizational goals and objectives. Thus, while opting to establish a system of reward power in an organization, the boss must be prudent of the coin’s dual sides.
In a nutshell, the reward power system has endless competitive advantages to boost the productivity of the employees. One of the greater advantages of the reward power system is the birth of innovative ideas in an organization. The employees will be motivated to brainstorm ideas and solutions to problems.
The excitement towards incentives will increase the employees’ potential capabilities to present unique ideas to achieve the organization’s goals smoothly. However, the organization’s boss must be cautious enough to overlook the budget and capacity of the organization to endure frequent incentives. This will help to save time and resources cautiously.
How To Manifest Your Dreams? You need to sit and think about what you exactly want for yourself. Before going out and spending time and money on something, you need to decide and ask yourself the following questions.
What is it that you want?
How bad you want it?
How much would you sacrifice to get it?
Because fulfilling a dream might be easy, but it requires a lot of motivation and both mental and physical strength. You need to ask yourself and make sure you are ready to give up some things in life to achieve others!
Before going out in the real world, it is essential to conduct a personal search; this may require the visualization of scenarios that you might have to face in the future.
You can also do your research by talking to people who have had similar experiences. You can brainstorm with them, discuss your approach, and take their opinion. This can also help you motivate yourself.
3. Clear your Mind
Overthinking does not lead anywhere good; it only makes you anxious. So, you must take time out from your daily schedule and relax your body and brain.
Here are two different ways you can manifest your mind and ease yourself:
Pranayama is a type of yoga that helps you practice your breath regulation. You purposely hold your breath, inhale and exhale in a specific sequence. It relaxes the mind, and it is an exercise for your mind and body. Pranayama does not only contribute to your mindfulness, but it also has a therapeutic effect on your mind from continuous breathing. Pranayama calms the nervous system and reduces stress amongst the adults. It is specifically helpful for people who suffer from anxiety.
We would suggest that you use pranayama as an exercise to calm yourself down so that your mind feels free from all the stress and focuses on helping you achieve what you want in life.
The yoga series on manifestation helps you connect your whole body from head to toe. Placing your hands in a specific way result in changes throughout the body, liberating different body parts. There are so many yoga mudras you can choose from, like Ksepana Mudra. Hakini Mudra, Gyan Mudra, etc.
We would recommend you practice Lotus Mudra. It will not only relax you, but it will help you realize your potential. The lotus flower is a symbol of a beautiful flower that grows out of the mud.
This yoga position will help you focus and concentrate more on your thoughts. You’ll be able to brainstorm better and make better decisions. You always need the motivation to conquer your dreams, and mudra creates positive vibes that might give you the thunder you need to conquer your dreams!
You will see that yoga will help you cleanse your mind, and there will be more room for positive vibes. Now you have to motivate yourself and stay positive. Here are some ways that will not only motivate you but will help you move forward in conquering your dreams:
Create a vision board in a place where you spend most of your time. It can be your room or your office. You can collect pictures and cut-outs from places that you think motivate you. You can add pictures of people who have excelled in their field and are a living example for you. Add pictures of your family if they keep you going in your hard times.
You need to decide what motivates you and keep it close to you, so you never lose faith in yourself.
The best way to motivate yourself throughout your life is to keep a record of your achievements. Looking back, seeing where you started and going through your journey always helps you move forward.
This might not only help you, but it may help the people around you, and maybe even coming generations!
Fear of Failure
Nobody ever achieves their goals and dreams on the first try. They have to go down a long road to achieve what they want. There is a big chance that you might even not manifest your dreams after many tries.
You need to prepare yourself before every try that there is a chance of failure, and you need to prepare yourself to try again, and then AGAIN If you fail! You need to overcome your fear of failure because your dreams are not worth giving up!
Take a Leap of Faith
Many people leave their comfortable life and start their journey full of hurdles, only because they want to achieve something they could not do in the past. They are brave, and they have passion, and they know nothing can put them down. Sometimes, leaping faith is all you need to help yourself get back on your feet and start your journey of living your dream. So what if you fail? Is the fear of failure enough to hold you back from actually conquering your dreams? Ask yourself, again and again, every day, until you get an answer to satisfy your soul.
We hope you are successful and your dreams come true!
Are you having trouble focusing on your work? Does that stress you out? Does that affect the efficiency of your work? We have concluded 5 reasons why you might have trouble focusing on work. We are sure you might be able to diagnose your problem, so read on!
You Are Sleep Deprived
Whenever you sit to do work, do you start yawning? Do you have to tell your mind to focus again and again because you can’t seem to focus on what you’re doing?
You might have drained yourself, and you’re probably tired, which hinders your ability to concentrate! Studies have shown that sleep deprivation and tiredness impact your cognitive memory and especially cognitive speed. You will find yourself getting the same amount of work done in less time when you’re not sleepy or tired compared to when you are.
Lack of sleep actually destroys brain cells. You may think you can manage large amounts of work with lack of sleep, but you should know that your efficiency in doing your work will be compromised because your brain’s alertness will die off eventually.
A quick fix for sleepiness can be a caffeine boost, but that is just a temporary fix. There is no other way to stop yourself from falling asleep while focusing on work other than having good sleeping hours! You need to have at least 6 – 8 hours of sleep every day. You may think that you might not have time for so much sleep, but it is essential if you want effectiveness while working.
You can try taking a break when you’re unable to concentrate and take a nap instead for a bit to recharge yourself!
You Are Multitasking
You may feel very accomplished when handling different things at one time, but you may not realize that your productivity may suffer due to this. Studies have shown that you may work faster when you are constantly interrupted, but you may be less productive because your attention is diverted every few minutes.
Managing many things simultaneously is a great quality, but you need to understand that it stresses you out and makes you tired. You can try to manage your time better. Assign different time slots for specific tasks to not have trouble focusing on the task you’re currently doing.
Create an environment that does not distract you from the task you’re doing. You can do this by putting your phone away and putting on music that motivates you and helps you concentrate. You will see that carrying one task without switching your concentration to another task will help you focus and help you increase your speed!
You Don’t Like What You’re Doing.
There is a high probability that you find yourself surfing the most random things on the internet, having snack breaks, and even calling different friends. You will see that you’re procrastinating and doing the silliest things at this time when actually you have to complete a task! This means you’re avoiding the task by distracting yourself with unimportant things because you have no interest in the work you’re appointed to do, and you probably hate it.
It’s okay; everyone has had experiences where we had to do things that we hated but did them anyway. It would be best if you faced reality. You need to realize that you will have to do it at the end of the day, no matter how much you delay the task. So, the smart thing would be to stop delaying the work that you hate! In fact, the smarter thing would be to do the work that you hate before doing anything else.
You will see that a weight has been lifted from your shoulders when you’ve completed the most dreaded task earlier in the day. You will have a stress free day ahead of you, and you will definitely enjoy the other tasks.
4. You’re working in a Messy Environment
Unless you are a person who thrives in messy, chaotic environments`, there is a high chance that the messy environment around you distracts you and probably slows you down. You might think that the mess and the clutter around you aren’t bothering you, but the truth is it definitely does distract your mind. Imagine you’re reading and researching articles for a study, but the food wrappers, bottles, and the colorful toys around you keep getting your attention.
It would help if you had your mind to focus only on your work, and for that, the environment around you must be clean and clear. Your workspace is the only place that is supposed to be the least chaotic so that your mind does not wander off to places when you look at things.
Your workspace does not have to be empty, and you can always fill it with things like stationery to motivate yourself while working.
If the above-mentioned factors seem pointless to you, and you do not feel sleepy, nor do you procrastinate, then there might be a chance that you have ADHD.
You do not have to panic when you hear about this, many people are diagnosed with ADHD, and they learn to cope with it. We would recommend that you consult a doctor, and if you’re diagnosed with chronic ADHD, you should get proper treatment for it.
The grace of make a positive impact in the department of home and community is not a cup of tea or attained with just one day of labor. It requires a person to be flexible and keen on adopting necessary changes in one’s personality. The most graceful and influential personalities burn the midnight oil to impact their professional and non-professional circle positively.
Thoughtful leadership skills are required in a leader to begin the journey of being forward-thinking when positively impacting the community. The person must be equipped, or be willing to become equipped, with a forward-thinking pattern for the sake of creating a visionary and leading image in the community. Before initiating the steps of beginning to make a positive impact, we ought to explain what the forward-thinking pattern is to understand the concept.
What is Forward-Thinking?
Forward-thinking involves being able to analyze possible future constraints through a clear visionary approach. It requires anticipation and preparation to avoid pitfalls and failure and also requires creating roadmaps for embarking opportunities through innovatory ideas. Forward-thinking has the ability to create and ultimately make a positive impact.
What Actions Do Thought Leaders Take to Make a Positive Impact?
Thought leaders are well versed and well equipped to make a positive impact on the universe. It requires tremendous effort to impart a positive vibe and a reflection of one’s personality onto other people in the community. Thought leaders have the ability to unify the team by redirecting and reorienting toward a common goal of accomplishing the vision through proper consultation among team members. Following are the ways through which thought leaders make a positive impact on society.
Involvement of team members:
The thought leaders make sure to involve and engage team members in the participation of activities. The thought leader tries to impart feelings of ownership to the team member in this manner. Team members’ involvement creates a sense of ownership, accountability, and recognition for the people in the group.
Gives reminders of the vision:
The thought leader makes efforts to remind the team members of the vision frequently. This helps them stay mindful of the vision and ensures the alignment of actions towards the common goal. Otherwise, the team members could be easily disoriented toward the achievement of goals for accomplishing the vision. Thus, the thought leaders make a positive impact by reminding the team members of the vision and being aligned toward taking positive steps to accomplish goals.
The thought leaders take the necessary risks to reach the heights of success. The thought leaders know the price to be paid for taking risks in the form of one’s own sacrifices. They have a better idea and a better understanding that there will be zero chance of embracing innovation in the achievement of the goals without risk.
Read and watch:
The thought leader knows the power of reading and watching documentaries. By creating a reading habit, the thought leader enhances their analytical skills. These reading habits also help to inculcate the good quality of forward-thinking skills in the thought leader. Thus, utilizing a reading habit, the thought leader gets enough strength and valor to impact people positively.
Set aside time for forward-thinking:
Last but not least, the thought leaders set aside dedicated time for forward-thinking. During that designated time, the thought leader tries to think about any future impending issue or issues from all angles. The analysis of the future, and mind mapping for the future, provides a systematic pattern for enduring through the selected way. Similarly, the thought leaders’ forward-thinking approach created an actual difference in the ordinary person’s personalities and thought leader. And eventually, the thought leader, through the forward-thinking approach, make a positive impact and demeanor in the community.
How can be forward-thinking approach inculcated to make a positive impact?
A static minded person can never adopt a forward-thinking approach in life. To be a forward-thinker, you must inculcate flexibility into your personality. The person’s flexibility will help them to adjust to the emerging contingency issues with ease easily. Life is a blend of unexpected experiences. One can never expect to have win/win situations all the time. Thus, flexibility will help adjust to and overcome the unexpected happenings in life to accomplish the goals.
Negotiating with team members:
It would not be wrong to say that consultation helps in clearing any ambiguities in the pathway. Negotiation and consultation will help the person clear the whims and suspicions from the achievement and help align toward the common goals. Thus, negotiation with team members will also help to make a positive impact among the people.
Trying to increase one’s emotional intelligence:
To be a forward-thinker, the person must be tactful and mature enough to know people’s feelings and reactions. A person with a higher skill of managing others’ emotions can tremendously increase one’s forward-thinking pattern skills. Likewise, a good manager of other’s emotions has the ability and potential to make a positive impact in the community.
To be a forward-thinker, one must be a good critical thinker. By critical thinkers, we mean to be mindful of the pros and cons experienced in life. The person must be good at scrutinizing the flaws and uncertainties that could be encountered while on the path of achieving their goals. Thus, a good critical thinker helps in building the patience to be a good forward-thinker.
Lastly, but equally as crucial and important in reaching the marvel of successes, one requires a minimal creativity share. Creativity is not bestowed by nature or by birth, but it can be inculcated with years of practice and experience. The bitter experiences of life and the harsh realities work to bestow humanity the ability to learn a multitude of lessons. Thus, it is up to a person to extract positive and creative lessons from one’s experiences. Creativity can be nourished through practice and willpower.
CONCLUSION how to Make a Positive Impact
Thus, concluding the above discussion, it can be deduced that a forward-thinking approach does not happen overnight. It requires the midnight oil to burn by inculcating enough patience and strength for the future. Likewise, summing up the discussion, we can say that to make a positive impact in the community requires a person to have will power and choice in life. Without will power and choice, one can never embrace the journey of a forward-thinking approach in life.