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Strategic Cost Management

The New Tool for Competitive Advantage

In this book, Shank and Govindarajan demonstrate how strategic cost management - an analytical framework which relates meaningful accounting information to a firm's business strategy - is changing accounting practices in leading companies. Using case studies, including Ciba-Geigy, Ford, Motorola and Texas Instruments, they show how the tools of strategic cost management - value chain analysis, strategic positioning analysis and cost driver analysis - provide a sustainable competitive advantage over companies whose cost systems are in disarray.

How is strategic cost management different? It is cost analysis in a broader
context, where the strategic elements become more conscious, explicit, and
formal. Here, cost data is used to develop superior strategies en route to gaining
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