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14).
Shank (p. 27) utilized Strategic Cost Management (SCM) verses the Management Cost Paradigm (MAP), which is more in line with Porter’s mentality, to show how value addition is determined (Shank, p. 27) by addressing the costs involved.
The SCM paradigm addresses strategy as a matter of addressing the value chain overall. Strategy (in Shank’s model), in observing the overall value chain elements and their interaction internally and externally, is molded by the firm itself as wells as the competition, suppliers and customers needs, wants and perceptions as well as costs. Accounting is not the end all to the process, but is an integral part of the process, therefore, intangibles are taken into account that pure cost accounting (of Porter) cannot address...
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Common topics in this essay:
- Costs And Reliability
- oppertunity costs
- Porter Verses Shank Value Chain
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