Page 9 - Cost

Interview

Impact of Efective Cost Competency on

Sustainability of Business

Shri D S Rawat

Secretary General,
Te Associated Chambers of Commerce and Industry of India

Q. strategy. Government should extend subsidy
to those entrepreneurs in the purchase of Plant
How cost competitiveness helps to increase
& Machinery, Government should also ease
the overall competitiveness of the country and the process of quality control certifcation and
how it afects the organizational growth & make the tax structure lenient. Government
should promote these products in international
overall economic growth? market so that demand of the product could
be increased.
A. Cost competitiveness helps an Q. Based on your observations, do you think

organization to achieve the status of cost that current strengths of the members of the
efectiveness which results into producing company are sufcient to cope with competition
value for money products. At a large scale or need a change?
when companies become cost competitive
they contribute in making the country cost
competitive in the international market. When A.Te core competency of the organization
companies reduce the cost of a product or a plays an essential role to achieve its objectives
process they can have extra funds in their hands and its strengths complement its core
to spend on other important activities such competency in a way that organization
as IT infrastructure, machinery, best human could cope up with competition. However,
resources, quality management which leads According to the changing dynamics of the
to the organizational growth and ultimately to market, there is always a scope for the change
the overall economic growth of the country. for the improvement. Strengths can be further
improved to make the organization more
Q. What should be the role of Government competitive in the market.

when an entrepreneur designs its cost Q. In terms of long term growth and
competitiveness strategy? sustainability factors, how does cost
A. An entrepreneur, who is adopting cost organization?
competitiveness matter with respect to the

competitiveness, is also contributing towards
the country’s cost competitiveness. In other A.Cost competitiveness is an essential
words he is helping the country to emerge factor in terms of long term growth and
as the global economic leader. Government sustainability of the organization. It saves
should also play a vital role in the designing money for the organization which could
of an entrepreneur’s cost competitiveness be utilized in other important activities

09 www.icmai.in The Institute of Cost Accountants of India