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Strategic Cost Management Practices,Used
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In a dynamic and competitive economic environment any business activity needs an integrative approach to organize a set of specialists from different departments into crossfunctional teams that all strive for a certain goal such as cost, quality, and lead time, forming an integrated planning and execution system. Traditional cost approaches are no longer adequate, strategic cost management understands what causes costs to occur, through cost driver analysis and value chain analysis. The knowledge derived from this process can lead to revenue enhancement, cost reduction and increased productivity; companies can also increase understanding of profitability, satisfy customer demand and meet profit targets. This book, therefore, provides a new strategic successdriver to the company and contributes in shaping the future of the company at a competitive advantage. Competitive strategy defines the goals that an organization must attain to satisfy market demands and remain profitable. Cost management provides the means that helps the organization to achieve these goals. It does so by integrating the strategic variables of market trends, customer needs, technology advances, and
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