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SCM (Discussion)

Strategic Cost Management focuses on applying cost management measures to enhance a company's strategic position while controlling costs. It emphasizes the importance of aligning cost strategies with long-term growth and overall business strategy, especially in a competitive and regulated environment. Managers are encouraged to identify improvement opportunities and make decisions that balance cost reduction with revenue enhancement for better profitability.

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33 views1 page

SCM (Discussion)

Strategic Cost Management focuses on applying cost management measures to enhance a company's strategic position while controlling costs. It emphasizes the importance of aligning cost strategies with long-term growth and overall business strategy, especially in a competitive and regulated environment. Managers are encouraged to identify improvement opportunities and make decisions that balance cost reduction with revenue enhancement for better profitability.

Uploaded by

Park Mina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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DISCUSSION (STRATEGIC COST MANAGEMENT)

Strategic Cost Management is the application of cost management measures to improve a company’s
strategic position while also controlling costs. It also deals with a decision-making system to support the
organizational strategy as a whole. Traditionally, firms have always been pressured to cut costs in the
short-term without considering the long-term growth and integration with the overall business strategy.
Most especially in today’s business environment of increased global competition, more stringent
regulations, and changing demographics, companies must build a comprehensive cost strategy or
framework to gain sustainable competitive advantage in the market. Managers must be able to see
possibilities for improvement, consider trade-offs, define priorities, and take actions that are consistent
with desired strategies to cut costs and enhance revenues, in other words improved profitability.

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