Volume : 1, Issue : 3, August - 2012

A Study On Strategic Cost Management Of Tanishq

Mr. Suresh A. S, Mr. Bharath R

Abstract :

The justification of existence of any company is determined by performance. Performance evaluation is necessary from the point of view of the investors, creditors, public, government and organization. Why a company does not perform well for years? Why net profit has tremendously increased over the years? Where the raised funds are invested? What about liquidity and solvency position of the company? The pressure of the company to perform well in the face of severe competition has pressurized them to decrease the margin. How to increase the margins? All these questions require a depth study. Strategic cost management is cost analysis in a oader context, where the strategic elements become more explicit and formal. Strategic cost Management involves usage of cost data to develop superior strategies to gain sustainable competitive advantage. A holistic understanding of a firm’s cost structure can go a long way in search for sustainable competitive advantage. Thus, SCM is the managerial use of cost information explicitly providing strategic perspectives.