The paper finds that the principles of division of work, authority and responsibility, of command, unity of direction and scalar chain are useful in the implementation of a cost leadership trategy other, more modern alternative principles apply for differentiation strategy. Likewise. the three principles of stability of tenure of personnel, initiative and espnt implementation of differentiation strategy, but not to rnst leadership. where, again, alternativ principles apply. The remaining six principles of discipline, subordination of individual interests to the general interest, remuneration, centralization, order and equity are applicable to implementation of both.