Fayol stated that work has to be divided into special units and distributed among groups depending on the area of specialization. Managers be aware that power has responsibilities. Discipline is another essential principle, which ensures the success of the organization through the common effort of workers. There should also be the unity of command principle and subordination of personal interests to the organizations interest. Managers should base remuneration on the job responsibilities, qualifications, business conditions, and performance to determine the pay rate while there should also be centralization and decentralization of power. Development of organization hierarchies, as suggested by Fayol under the scalar chain principle, increases the success rate of operations. Order is essential in the workplace as it increases efficiency through ensuring that all materials and skills are treated as important. Equity in the workplace is also important as it increases production while under the stability of tenure, leaders of organizations should target at retaining productive personnel. Consequently, there would be increased job security and increased performance and Through the principle of initiative, managers should encourage workers to be self-directed. Intrinsic motivation increases the performance level. Finally, espirit de corps entails encouragement of harmony among the employees (Berry, Broadbent & Otley, 2005).
Importance of having a VISION for a company
A vision is a realistic and attractive future that companies target at attaining within a specified period. It should therefore be attainable and future oriented. Companies communicate their visions through a vision statement. One importance of a vision is its ability to attract commitment from people within the organizations. Workers gear their efforts towards realization of the targets. This creates a sense of purpose for the employees within the organization since they develop a sense of belonging as they handle their work. Moreover, a vision bridges the gap between the present and the future. It gives the direction and acts as a basis for strategic plans (Kendall, 2005).
Importance of Positioning Strategy
Positioning refers to the differentiation of a brand to increase its competitiveness in the market. The company gains a larger market share. A positioning strategy is important in determining the performance of a product in the market in relation to the competing brands. It targets at improving the reputation of the goods and services in order to attract more customers. Through creation of a good image in the minds of consumers, there is increased loyalty. Consequently, organizations experience growth and increased dominance in the market (Karadeniz, 2009).
Democratic Management Style of Leading
Democratic leadership entails a leader who makes decisions based on the views of the people. Managers who embrace this type of leading tend to view the organization as a team. During the decision-making process, they capture the ideas of all people in the organization to build a consensus. Through incorporating their suggestion in the decision-making, they acknowledge that other people are creative. Although they motivate workers through engaging them, they face a challenge of making fast decisions in light of urgent challenges (Kippenberger, 2009).
Importance of Marketing in Organizations
Marketing is the process that entails the introduction of products and services into the market and ensuring their distribution to potential customers. This element is essential in organizations as it helps in the development of products that meet the needs of the consumers. This is through identification of need gaps and the target market. It is through marketing that firms can attract new customers and retain the old ones. This is through promotional activities, such as advertisements and awarding redeemable loyalty points. Marketers are also responsible for improving the level of a companys competitiveness through meeting and exceeding the customers expectations (Kotler & Amstrong, 2012).
Importance of Understanding Various Pricing Strategies
Pricing is an important marketing strategy that helps in determining the cost of the products in the market. Understanding various pricing strategies is essential as it enables the marketers to choose the most appropriate one depending on factors within the market. For instance, the level of demand and supply influences the level of prices. Low supply results to increased prices while low demand leads to a reduction of prices. Knowledge of these factors, also enable the marketers to incorporate the pricing strategy that would ensure that the organization does not run on loses (Kerin, 2006).
Four Pricing Strategies
Penetration pricing strategy entails the sale of products at a low price to increase the sales level. Products that use the skimming strategy embrace the concept of profit maximization as they sell at high prices. The strategy targets at consumers who are not sensitive to prices. Psychological pricing is a strategy that bases the cost of the product on factors, such as perceived value and price points, that would lead to consumers perceiving them as fair-priced. Lastly, value-based pricing is based on the effective value of the product to customers in relation to substitute products. A high the perception of value, leads to high price (Blythe, 2009).
Most Important Concept I have Learnt this Semester
The most significant concept for me this semester is that the management of a firm and the marketing department heavily influences the performance of a company. While the management determines the internal operations of the firm, such as the performance of workers, the work itself, and the quality of products, the marketing team mainly deals with the customers and ensures that the organizations exceed their expectations. Although they have different functions, they should work together. For example, through marketing research, marketers can identify need gaps that would enable the management of the firm to produce a product that meets the needs. Working towards the achievement of the companys vision integrates the responsibilities of the marketers to those of the management.
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Berry, A., Broadbent, J., & Otley, D. (2005). Management control: theories, issues, and performance. Hampshire: Palgrave Macmillan
Blythe, J. (2009). Key Concepts in Marketing. Los Angeles, CA: SAGE
Karadeniz, M. (2009). Product positioning strategy in marketing management. Journal of Naval science and Engineering. 5, 98-110
Kendall, G. I. (2005). Viable vision: Transforming total sales into net profits. Boca Raton, Fla: J. Ross Pub.
Kerin, R. A. (2006). Marketing. New York, McGraw-Hill/Irwin.
Kippenberger, T. (2009). Leadership styles. Oxford, U.K.: Capstone Publishers.
Kotler, P., & Armstrong, G. (2012). Principles of marketing. New York: Pearson Prentice hall.Bottom of Form
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