Organizational requirements to support and sustain cost leadership are:

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Frequent, detailed control reports are essential for cost control and maintaining a cost leadership strategy. Subjective measurements and incentives may not always align with cost-cutting goals, and a tradition of closeness to key customers may lead to additional costs in providing extra services or customization. While having personnel skilled in sales and operations can be beneficial, it is not necessarily a requirement for supporting and sustaining cost leadership.

Organizational Requirements to Support and Sustain Cost Leadership Are