Professional Documents
Culture Documents
Strategic Cost Management
Strategic Cost Management
Paramjit Sharma
cms
Wal-Mart Story
Paramjit Sharma
How did it happen? cms
Paramjit Sharma
the wall mart story-one instance cms
Now, I want you to raise your right hand…… I want you to repeat after me:
from this day forward I solemnly promise and declare
that every time a customer comes within 10 feet of me
I will smile,
Look at him in the eye and greet him,
I am Sam May I help You
Paramjit Sharma
the wall mart story cms
Success
Mission Strategy
Paramjit Sharma
Mission Statement of Wal-Mart cms
Wal-Mart
"To give ordinary folk the chance to buy the
same thing as rich people."
Paramjit Sharma
cms
Paramjit Sharma
cms
Paramjit Sharma
Scope of The Session cms
Paramjit Sharma
cms
Paramjit Sharma
concept of cost management information cms
Paramjit Sharma
concept of cost management information cms
Paramjit Sharma
cms
Paramjit Sharma
the uses of cost management system cms
Paramjit Sharma
cms
CMI FMI
Usefulness
Accuracy &
&
Timeliness Compliance
Paramjit Sharma
cms
4 functions of Management
Paramjit Sharma
cms
4 functions of
Management
Strategic Preparation
Management of
Financial
Statements
Planning & Management
Decision &
Making Operational
Control
Paramjit Sharma
cms
functions of
Management
Paramjit Sharma
cms
4 functions of
Management
Paramjit Sharma
cms
4 functions of
Management
Management
& OC takes place when mid level managers monitors
Operational the activities of operating level managers
Control
Paramjit Sharma
cms
4 functions of
Management
Preparation
of
Management complies with
Financial
financial reporting requirements Statements
as per law
Paramjit Sharma
CMI and managerial functions cms
CMI
1 Strategic is needed to make sound strategic decisions
Management regarding choice of products, manufacturing
methods. Marketing techniques & channels
and other long term issues
Paramjit Sharma
CMI and managerial functions cms
CMI
2 Planning & is needed to support recurring decisions
Decision Making regarding replacement of equipments,
managing cash flow, budgeting RM
Purchases, scheduling production and
pricing
Paramjit Sharma
CMI and managerial functions cms
CMI
3 Management &
is needed to provide a fair and effective basis
Operational Control
for identifying inefficient operations and to
reward and motivate the effective managers
Paramjit Sharma
CMI and managerial functions cms
CMI
4 Preparation of is needed to provide accurate accounting for
Fin Statements Inventory and other assets, in compliance
with reporting requirements, for the
preparation of financial reports and for use
in the three other management functions
Paramjit Sharma
cms
Paramjit Sharma
strategic management and strategic cost management cms
Pressure on
Business due to
Doing so
Managers requires
Global Competition Must think Strategy
Technological Innovation Competitively
Changes in Business
Process
Paramjit Sharma
strategic management and strategic cost management cms
strategic thinking
Strategic
•Anticipating changes issues are
•Product and production designed to gaining
accommodate expected changes importance
•Flexibility
•Ability to make quick changes Focus on
•Speed to market Strategic Cost
•Agile manufacturing Management
•Driving firm by using windshield not
the rear view mirror More cost
•Creative and integrative thinking……… Information
is Required
Paramjit Sharma
Strategic Cost Management cms
Paramjit Sharma
Organizational Strategies cms
Paramjit Sharma
cms
Paramjit Sharma
contemporary business environment- influence on cm cms
Paramjit Sharma
contemporary business environment- influence on cm cms
Paramjit Sharma
contemporary business environment- influence on cm cms
New
Manufacturing
Technology
Speed To Market
Flexible manufacturing
Statistical Quality Control
Target Costing
JIT
Paramjit Sharma
contemporary business environment- influence on cm cms
Information
Internet Technology
E-commerce
Amazon. com
Paramjit Sharma
contemporary business environment- influence on cm cms
Focus on Consumer
Expectations for
Quality product functionality
Service & Quality
Delivery
Features of products
Short PLC
Low cost high value
Paramjit Sharma
contemporary business environment- influence on cm cms
New Form of
Management
Customer Based Organization
Non Financial Measures
Quality
Time to delivery
Service
Flexible Structure
Paramjit Sharma
contemporary business environment- influence on cm cms
Social
Political
Cultural
Work Force Considerations
Ethical Responsibility
Flexible and adaptable
Increased deregulation
Paramjit Sharma
cms
Paramjit Sharma
Strategic Focus on Cost Management cms
Paramjit Sharma
Sheep Story cms
Paramjit Sharma
Strategic Focus on Cost Management cms
Paramjit Sharma
influence of contemporary Mgt. techniques on CM cms
Theory of Mass
Reengineering Just in Time
Constraints Customization
Paramjit Sharma
cms
Paramjit Sharma
Strategic Focus on Cost Management cms
Specific Actions to
Mission Performance Achieve
Objectives objectives
Paramjit Sharma
Strategic Focus on Cost Management cms
Specific Actions to
Mission Performance Achieve
20 years Objectives Objectives
5years Current Year
Paramjit Sharma
Competitive Strategies cms
Followed by Business Houses
Paramjit Sharma
Mission Statements cms
Paramjit Sharma
Mission Statements cms
Paramjit Sharma
Mission Statements cms
Paramjit Sharma
Strategic Measures of Success cms
Sales Growth
Earning Growth
Dividend Growth
Bond & Credit Rating
Cash Flow
Increase in Share Price
Paramjit Sharma
Strategic Measures of Success cms
Non Financial
Measures of
Success
Market Share
Customer Service Product Quality Competence
Delivery Mfg.Innovation Integrity
C Satisfaction Productivity Education & Training
Brand Recognition Cycle time Motivation
Market Position Reduction in waste Innovation
Paramjit Sharma
lack of Strategic Information- consequences cms
Paramjit Sharma
cms
Paramjit Sharma
developing a competitive strategy cms
Cost Leadership
Paramjit Sharma
developing a competitive strategy cms
Cost Leadership
BIG CAVIN
NIRMA AMUL BAZAR CARE
Paramjit Sharma
developing a competitive strategy cms
Cost Leader
remains only so long
as the consumer sees that product
or service is at least nearly
equivalent to competing product
that cost some what more
Cost Leadership
Paramjit Sharma
developing a competitive strategy cms
Paramjit Sharma
Porter's Generic Strategies cms
Advantage
Target Scope
Low Cost Product Uniqueness
Paramjit Sharma
cms
Marketing Differentiation
Paramjit Sharma
cms
Paramjit Sharma
Milind Lele cms
5 Dimensions( Maneuverability)
1. Target Market
2. Product
3. Place
4. Promotion
5. Price
Paramjit Sharma
Product cms
Form
Features
Performance
Conformance
Durability
Reliability
Reparability
Style
Design
Paramjit Sharma
Services cms
Ordering Ease
Delivery
Installation
Customer-
Training
Customer-
Consulting
Maintenance &
Repairs
Miscellaneous
Paramjit Sharma
Personnel cms
•Competence
•Communication
•Courtesy
•Credibility
•Reliability
•Responsiveness
Paramjit Sharma
Channel cms
COVERAGE
EXPERTISE
PREFERENCE
Paramjit Sharma
IMAGE cms
Symbols
Media
Atmosphere
Events
Paramjit Sharma
cms
Paramjit Sharma