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On October 22, 2016, Better World Books opened up it’s Mishawaka, IN […]
John K. Shank
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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 costanalysis, 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.
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