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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. Fins os mangoes gor i Si gu. Te seco tment sents soacp rman, nig bah Fran ad ofan fat Frei perormace meses cade amon ters 12 promthin ke andeamingt exh fowe Sek pce “They show the inpet of he fis pes nd prcedre inthe fms ‘cent racial portion an heer is cuenta othe sorb. Nov fnacio mene efeperation cae amon overs & 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) Scanned with CamScanner Dowling Conptine Sra, Contemp Cot Manama Tames 2 chee 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 Cases Fs Fontana E a Teta ea pe pi sata See cmt fee fom ew ptt sa recat zany Poms Envi fe operons, eps ven ro uy heh ow, tn ee ow rast core, ot tro meray Tow, cas rove cat gs Metere Stave [Herne Meno ress Contec ‘Garner essen ‘Cesare ams ax cmp one ney Deland da? Govwage astro cee af dtu | arn rezone 9. mabe ees | fSuormpen Mtg ant stg resp sab peromee, ny, met rmeachoctes renired Rhos rps Tenet eve (nate dave partomarc, ef ocr some out Gusorerconsans naray eerse [itera ies rosa uty Namba oc, rani war, ca suney, aa of soap, nc revert. see pers, nara as, Yeo” Guy Pretty ‘ce ime (tom ow rateals nse poet, ‘er ecrey,mocire ec are ea Set eo tne suming 4 rnoreton Pra tortor Tino Same aps mre pe cor se reach at deer sor Tenisslvew ret | Harter ol os over ude Be ancicet po ‘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 CamScanner COMPETITIVE 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 [Ree [iting Trin ‘Sracpctnpe | ices scence —| Foose econo ha Pa TN) Lonel oA ane jeoaa Tae ea Peace oa aasen Prec enaane | ove naib etwth | rece RRA Nenautyadewed | pas pont ue Tae as] Longe Wah ie eg ease Pena pe dere, erst aes 26s sco rE = ‘Looking moe covey a ieee fis, the ey CSF mt exeton aes 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. her Sei sue [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 seers eae ig lege efi’ ol rangy See se ee ae ae sore ‘hon ot OD, ha hunters isa mimic ft cma coer Either smn cone beens Sak ans aac a a Merangieton ‘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

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