scholarly journals The Role of Strategic Cost Management in Marketing Decisions: A Case Evidence of Brand Acquisition Assessment

2020 ◽  
Vol 3 ◽  
pp. 5-24
Author(s):  
Richard Kristoffer S. Manapat ◽  
◽  
V. G. Sridharan ◽  
◽  
Keyword(s):  
Value Chain ◽  
Cost Management ◽  
Financial Statement ◽  
Strategic Positioning ◽  
Value Analysis ◽  
Strategic Cost Management ◽  
Marketing Function ◽  
Product Pricing ◽  
Cost Allocations

While the role of strategic cost management (SCM) is heralded to pervade through all the links in a firm’s value-chain (Anderson, 2006; Shank & Govindarajan, 2004) the specific role of SCM in relation to a firm’s marketing function has thus far been limited to a few areas such as product pricing and analysing customer profitability through activity-based cost allocations (Datar & Rajan, 2018; Foster & Gupta, 1994; Van Raaij, 2005). This paper presents a case study to show how SCM concepts can be extended to evaluate brand acquisition by a large organisation. Using shareholder value analysis for pricing the brand and combining with financial statement analysis and strategic positioning models such as Porter’s five forces and SWOT, this paper conducts an assessment in order to offer recommendations for a multi-billion peso investment of a large Philippine-based processed foods company seeking to acquire a new brand.

scholarly journals The association between strategic cost management and enterprise risk management: A critical literature review

2011 ◽  
Vol 9 (1) ◽  
pp. 184-195
Author(s):  
Mohamed Elsayed ◽  
Ananda Wickramainghe ◽  
Marwa Abdel Razik
Keyword(s):  
Risk Management ◽  
Value Chain ◽  
Positive Relationship ◽  
Cost Management ◽  
Enterprise Risk Management ◽  
Value Chain Analysis ◽  
Total Quality ◽  
Strategic Cost Management ◽  
Chain Analysis ◽  
Enterprise Risk

Reviewing literature and application of strategic cost management (SCM) and enterprise risk management (ERM) are critical and significant for corporate management to facilitate top management to employ appropriate SCM and ERM processes and systems especially in occurrence of constant and regular business turn around, crises and turbulence in recent time in world of business. This paper revisits and reviews the association between strategic cost management and enterprise risk management. Based on this review, the following propositions were developed; firm, which adopted SCM, is more likely to adopt ERM approach, there is a positive relationship between audit type and the association between ERM and SCM, and there is a positive relationship between company size and the association between ERM and SCM. The association between ERM and SCM differs from industry to another. The study also develops a framework for SCM composes of the following items: SWOT analysis, benchmarking, competitive advantage, value chain analysis, implement strategy that reduce cost during the value chain analysis by using target costing, accounting based-costing, accounting based-management, just in time, total quality management, life cycle, theory of constraints, and measure performance by using balanced scorecard.

Strategic Cost Management in the Supply Chain

2020 ◽  
Author(s):  
Lisa M. Ellram ◽  
Wendy L. Tate
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Return On Investment ◽  
Cost Management ◽  
Strategic Cost Management ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Definition Of ◽  
The Cost

Companies increasingly face challenging economic times, where it is not uncommon to see revenues decline or remain stagnant. This can strain business viability and reduce the return on investment for shareholders. To increase the return on investment and favorably impact profitability, organizations focus on cost reduction efforts. Cost management should be both holistic and purposeful, while taking a supply chain perspective. This is often not the case because the cost reduction efforts tend to be internal and short-term focused and do not consider the supply chain implications of decisions. Strategic cost management takes a supply chain perspective and includes several tools that can help facilitate cost management. This chapter provides a definition of strategic cost management with supporting examples. It also discusses some tools, including total cost of ownership, target costing, and supply chain finance, that can be used to holistically and strategically manage supply chain costs. The chapter closes with a discussion around the growing role of supply chain finance in cost management.

Cilindro del Sur and United Gas Products: An International Application of the Strategic Cost Management Framework

2011 ◽  
Vol 26 (2) ◽  
pp. 321-339 ◽  
Author(s):  
Thomas G Canace ◽  
Paul E Juras
Keyword(s):  
Value Chain ◽  
Joint Venture ◽  
Financial Analysis ◽  
Cost Management ◽  
Capital Budgeting ◽  
Vice President ◽  
Business Case ◽  
Information Value ◽  
Current Accounting ◽  
Strategic Cost Management

ABSTRACT This case provides students with an opportunity to apply project valuation methodologies in an international context. The dynamics of the case offer more complexity than typical textbook capital budgeting problems because, while the identity has been disguised, the case is based on a real company. We complement recent pedagogical literature on strategic cost management (Blocher 2009) by applying a five-stage information value chain to our case setting. Students must consider both the financial and strategic factors to make a unified decision about whether an industrial gases joint venture should expand operations into Guatemala. Students are asked to perform thorough financial analysis using advanced spreadsheet modeling techniques to support their decision. Equally important, they are required to research the socio-political-economic factors, and to assess the joint venture's competitive and strategic landscape. The primary deliverable is a written recommendation, in the form of a business case, which is submitted to the Vice President of the U.S. joint venture partner. This component addresses concerns raised in recent literature (Matherly and Burney 2009) about the lack of emphasis in current accounting curricula on developing students' writing competencies in a relevant context.

scholarly journals The Strategic Framework of Cost Management for Production Competitiveness: World Experience

2018 ◽  
Vol 7 (4.3) ◽  
pp. 432
Author(s):  
Valentina Dubovaya ◽  
Anna Komelina ◽  
Shamila Hassan Ismail
Keyword(s):  
Value Chain ◽  
Operations Management ◽  
Cost Management ◽  
Activity Based Costing ◽  
Value Chain Analysis ◽  
Target Costing ◽  
Value Analysis ◽  
Chain Analysis ◽  
Key Concepts ◽  
Management Techniques

Purpose of the article is to analyze the concept of production competitiveness and develop framework of cost management. A variety of cost management techniques requires the identification of their relationship with the requirements of operations management. Identified seven key concepts of operations management, analyzed their essence, information requirements. Systematized cost management techniques accordance with modern concepts of operations management such as: standart-costing, break-even analysis, direct-costing, life-cycle costing, target costing, value analysis, functional analysis, activity-based costing, sensitivity analysis, JIT-costing, kaizen costing, activity-based cost management, value-chain analysis. The aim of the article is the establishment relevance of costing methods with the key concepts of operations management companies.  

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