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Strategic Cost Management

Program Overview

In today’s global business landscape, companies worldwide encounter mounting pressure to curtail expenses while enhancing profitability. The primary focus revolves around seeking more efficient and effective operational strategies. This imperative arises not solely from challenging market conditions and shareholder demands but also from the escalating expectations of customers, who seek heightened service quality.

 

To revitalize profitability as the economy rebounds, companies must acknowledge the necessity of strategic cost reduction endeavors and adopt an assertive stance in pursuit of this objective. Achieving a balance between short-term, tactical cost-cutting initiatives and sustainable, long-range cost management programs empowers organizations to realize significant cost reductions ranging from 15 to 30 percent.

 

Shifting the paradigm towards long-term cost optimization without compromising service quality demands a comprehensive approach to strategic cost management. This comprehensive three-day course aims to furnish all staff engaged in the strategic planning process with the requisite tools and expertise to accomplish these objectives.

Course Objectives

Upon completion of the program, each participant will demonstrate proficiency in the following areas:

  1. Utilizing analytical tools, including activity-based costing, customer profitability analysis, and strategic profitability analysis, to evaluate organizational performance in alignment with its strategic goals.
  2. Conducting, analyzing, and providing recommendations on value chain analysis.
  3. Comprehending the rationale behind business process reengineering and its interconnectedness with an entity’s strategy.
  4. Analyzing and assessing the impact of activity-based management on strategic planning processes.
  5. Grasping and articulating the correlation between product pricing, costs, and quality.
  6. Understanding and evaluating the strategic management considerations associated with capital expenditures.
  7. Proficiently analyzing information within diverse decision frameworks encompassing planning, control, and performance measurement and evaluation.
  8. Striking a balance between rigorous cost management practices and upholding core values, fostering team motivation, and facilitating organizational growth.

Course Modules:

The training program comprises the following modules:

  1. Overview of Strategic Management
  2. Organizational Cost Reduction Programs
  3. Operating Cost Analysis: Case Study – “Financing Gridlock”
  4. Activity-Based Management
  5. Customer Profitability Analysis
  6. Operational Excellence (OE)
  7. Outsourcing

Target Audience:

This course is designed for professionals across various domains, including:

– Finance Directors/CFOs, General Managers/Heads of Departments

– Divisional Heads, Financial Controllers, and Senior Cost Controllers

– Finance Managers and Operations Managers

– Auditors and Internal Control, Accountants, and Consultants

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