CHAPTER 4
DEVELOPING A COMPETITIVE STRATEGY;
CONTEMPORARY COST MANAGEMENT
TECHNIQUES
DEVELOPING A COMPETITIVE STRATEGY
‘Asay isa set of poles, cers nd aprons sie that pede
longterm sae.
Finding» are bepine with tein the pean ogg icin
ron eer woud te msn of he compar. Te mission developed ino
‘pes perorance cee nbichae then wplemetey specie corer
‘rcopny ssi, ht psi actin tachi te Ojeives Ba wl
Fate mision Aim sucsceds by aplemeting a Se
Sieg sees tow a orpintion mechs i ove epabites with be
pertinent mht pace to scomplshisebjeties. heer Nod,
sg decries cant wil compte andthe pores isenployee
‘Soul seh and purse. Compenc flow on of fo oad sate. Some
onpaies sch a Jolie, Pore Golf and Ceba Pai Aine compete on he
beso prowling quliyprodicter sowie tow prices This aso known as
“CosLLénenhig”staes.Oterconpies sch as Rusan's Department Soe
‘24 BOC Shag Hal congte on the abit Woe tnigu produ
Series tat ween priced higher thane pes services of amps
TisishnownasPract Difecistin” ates
Deciding tec hes sates aig pat of what mangers do. Manageret
scouts ork coy wh amar in frating stey by pong
{afrmaon athe sources of eonpeieabantie = for exam the est
red e ecieny advange of th company aie to petro
{he prem pce eonpny cn care ative the cant of alin ees
tht make spss eSeniee iinine, Te manager account lst
helps oul sey by aseringunstn such
e co Tehnuer 7
Whom ot npr cto?
Tove we ne perp aly. and ie
vow toting?
i nisnuc ots nrc eth dy ie
Ime penn peed?
«Doel enn powige ig?
1 bettemieaiot
Seti ct management roe wed 10 deste Cot Marapenet that
Specify Fc on meg snes sah a tee
‘STRATEGIC MEASURES OF SUCCESS.
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& makesare
1. prod aly
canoer action
pow oppor,
“Theron facto show the fis cet a poten eompettne
soi ae mess frm ire sisal pensive, ney
2, ner snes proces and
2 moan ad ei
Sirateifnancal and ofan messes sees teal comonl cle
Ctl Sacer Factors CSF)
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Figure 41 show he Finacial and Nowa! Mess of Success (Creal
SsceeuFaceo)
gore 1: Fiancl and Nonlannit Memeres of Secs or Cite
Secen Factory and Howto Measre CSF
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‘i gereapmert Narter of racing tous, amount of wit
etararce nga
erysemone Empey trot, inter of congas,
lerocys sey
Competes Ra of rove tong, eerece, ssa,
nanos an opeagpectomance mesures
Gomer iis eR ST ST
Wout setpoint fi 'ihely wo sy fom ts competing
‘owe, o make aepally wrong manusctsing and making dein. 1
‘hon he wrong profit te wrong cusomers Some ofthe consequence of
{eek of reg: neato a shown Figure 42.
Figure 42 Comeqorncen of Lach of Strate Information
Decn mating based on mston
(ek otcany abou acinar pas
lett carat pecaten fe fey casters and sles
Incl iene dacs, cong pods, mates or manera
esses nse wh Sane Gras
+ habiny een terra compton eur lt nop ab
ow ec consetie sane,
+ Falooi dort max potable protic, etme and mats
Scanned with CamScannerCOMPETITIVE STRATEGIES
Fe fo 9 msn w competi poston mat pros 4 es of
mutt facecarive tone be sncametis es MMe
(Con Leader so Produc Dereon
Cot Lealeniy
“Tiss compttv sty in which fm suceds inprodsing product of
‘eric he owes! Co the indery A Gem tat cost eer makes
‘Sas pfis at ve ces they lining he row f eats in
‘he indy hogh ty succes pea ad wnderining he profit of
competi which mis meth Gm om ie
Prods Difrntiion
The diferent seg be nplemeed by cen & pereptin among
corumers tha be pat err wan i sone imperial By
being ofighr qa, ete or insvien, This pepo aoue the fr
care higher pcs sd earl he copeiion in fit witha edacing
‘et sgictly Most indies lag automobile, ersomer lest,
‘indi equip ave diferent fms. The ape of ifeeinion
Isespesaly rong fr rot ins wich he eet of eid image
‘ngonat, asin couric jel end sore. Tiny, Roles, Fran and
BAW ae god cxampsf ins hat enphsize dierent
Diaectv Aspects ofthe Toe Competitive Strategies
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sein marictng ard profit development ~ develo castoner yay and
sand cogs, epson super and unique roduc and eslping aod
wing tailed ard tinel infomation abot custome nee and behave. Tiss
‘wre the math ting und prot development wine em prove ae
andthemanagcment acount npr es eis abering. naling. and
eprint else information.
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[im succeeds by sping and efetinelyimpleretng one ofthe sep
‘expied ear. Recopize ta aouh oe sate is gelly doen 8
fi ix met hy wo work hard at proces improverttrosphowt the fem,
eter cost ede o ferent, and on ocrsont employ bath of the
Sues atthe same tine Hever, fr olawing beth sess hey
‘occed ely iitahives oe of thn iia A Fr hates nt achieve
‘eas one aegis et ily abe wazeufl. Thi shann is what Michael
Call"peting sak nthe mie. Af that i tc inthe miles nce
Susann compettive tvartage. For enamps at eae Maat Superman
‘been tick in he mie sen eying carpet wth Pe Gol om cot ed
ead wih syle eonshus ret on iferenion
Scanned with CamScanner‘CONTEMPORARY COST MANAGEMENT TECHNIQUES
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‘Tout Quality Manapement,
‘osu inainceing eonpettneerviennen fers harey
‘mt pace ighaiy pode Aus Yl an iceing mater of
Companies be sted fl yay mangement pos ese hat
‘bps ao he highest uly andar pedeton proces
Tal ually management (TOM) i x igen wich management
eves pes and paces ene at e's dec ands
aredeononen expen
Caney he in erly ged pon perf” ayo inte a TOM
propa But mex compan ch TQM develop a cory ut Sess
Feng te reds of ease, ming pots aM te fet in,
red eee dish mast Be woreda eecargng were
‘Berane ingove tr rodncton proces. Ti why some TOM
ropa ae leeds cana quis improve! rg
ToM seep ong hy eicing ered okt eon sp
snd revo land cho HTQM le wrede Bee cn oe)
iow eel he eit cing th eons rly oan ecto