Principles of management and competitive strategies: using Fayol to implement Porter

Purpose – The purpose of this paper is to present how the past, Fayol's principles of management, is applied to the present, Porter's competitive strategies – cost leadership and differentiation – and in turn how the understanding of this connection between the past and present directs the future development of firms.Design/methodology/approach – This study explores which of Fayol's principles can be matched to Porter's cost‐leadership or differentiation strategy in terms of strategy implementation.Findings – The paper finds that the principles of division of work, authority and responsibility, unity of command, unity of direction and scalar chain are useful in the implementation of a cost leadership strategy but other, more modern alternative principles apply for differentiation strategy. Likewise, the three principles of stability of tenure of personnel, initiative and esprit de corps apply to the implementation of differentiation strategy, but not to cost leadership, where, again, alternative principle...