Strategic Cost Management: The New Tool for Competitive Advantage (Paperback)Shank Govindarajan (author)
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With persuasive evidence, Shank and Govindarajan demonstrate the strategic power of value chain analysis, i.e., linking external value creating activities all the way from basic raw materials, to component suppliers, and through to the ultimate end-use product delivered to the consumers. Next, they examine how cost management and cost control must be differentiated depending on the strategic positioning chosen by the firm, be it cost leadership or product differentiation. Finally, the authors offer penetrating in-sights on cost driver analysis using such examples as Champion International and Motorola to describe the uses and limitations of activity-based costing, quality costing, and technology costing.
Traditional cost analysis, the authors show, is limited to assessing the financial impact of managerial decision alternatives, with no consideration for strategic business objectives. In this indispensable guide, Shank and Govindarajan show how Strategic Cost Management (SCM) relates to a broader context, where strategic elements become far more conscious, explicit, and formal, and cost data is used to develop superior strategies en route to gaining sustainable competitive advantage.
Publisher: Simon & Schuster
Number of pages: 272
Weight: 311 g
Dimensions: 229 x 152 x 23 mm
Partner, Price Waterhouse
Executives and managers of all levels will find something in this book that will help them improve the bottom line.
Clark H. Johnson
Vice President, Finance and CFO, Johnson & Johnson
It's time for management accountants to be players with the team on the line. Learn how to achieve competitive advantage using "Strategic Cost Management."
Barry J. Brinker
Editor, "Journal of Cost Management"
This book--by insisting that management accounting must consider strategic issues and showing how to do so--provides a sophisticated understanding of cost structures, which is essential to achieving a sustainable competitive advantage.
Partner, Coopers & Lybrand
Shank and Govindarajan move beyond the traditional theory of cost analysis to a new paradigm which integrates many of the strategic value models and concepts that are critical for success in today's global economy. This important book should be essential reading.
H. Thomas Johnson
Retzlaff Professor of Quality Management, Portland State University, author, "Relevance Regained"
Here is a balanced and penetrating review of the information companies need to support continuous learning--perhaps the only sustainable source of competitive advantage. I recommend "Strategic Cost Management" to all executives, regardless of background or experience.