Title: Strategic cost management: preliminary lessons from European companies

Authors: Hans H. Hinterhuber

Addresses: Department of Management, University of Innsbruck, Austria

Abstract: Entrepreneurial drive, technology, and productivity are three characteristics which give many European companies a role of worldwide importance. This article describes strategic cost management within the framework of strategic management reflecting the current European approach. The conclusion is that at present European companies: (1) are making core competencies the guiding ideas of their strategies, and (2) are striving aggressively to increase their value, first by reengineering practices, and second by ||inventing|| new markets and satisfying all stakeholders, not only the shareholders, better and quicker than the competitors or other reference companies are able to do.

Keywords: discounted investment and operating expenses; discounted production flows; experience curve pricing; innovation; intangible factors; internal rate of return; pay-back period; strategy; strategic management; stakeholder satisfaction; tactics; target costing.

DOI: 10.1504/IJTM.1997.001643

International Journal of Technology Management, 1997 Vol.13 No.1, pp.1-14

Published online: 15 Aug 2003 *

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