Page 10 - Cost_Competitiveness
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The Institute of Cost Accountants of India
product or services sold, must deliver to Q.
survive, it has to sell competitively. The
In terms of long term growth
a promise. An aggregate of many such and sustainability factors, how
units comprise the nation. Sustainability
and growth are synonymous as one need does cost competitiveness matter
to grow to sustain. with respect to your own organiza-
tion?
Branding gives hype and gives relief to
cost ineffciencies, albeit temporarily. In
the long run, an organisation must be A. In the case of my organisation, it is
cost competitive. Similarly, trade barriers not only cost competitiveness but also
to give temporary relief to nations but technology upgradation and innovation
these measures have time limitations. which are important to survive in the long
term. This requires a strong and compe-
Q. Do you think that current mark our products with that of competi-
tent R&D Team who will always bench
strengths of your esteemed organ- tion, keep a track of the new develop-
ization are adequate to cope with ments in technology and absorb them
to produce superior products. Discipline
competition or need modifcations? and controls can limit cost increases, but
revolutionary break through can happen
only with technological innovation. That
A. Organisation strengths are never is why, both are important.
adequate since market changes take
place continuously and one needs to Q.
adapt and respond to such changes. In In order to obtain a fair view
my organisation, I am currently coping
with the worst ever downturn in our key about the performance of the or-
sectors of coal, power and iron ore. ganization, how to position the
cost aspect from the competitive
Our response is now to diversify out of point of view?
these core sectors so as to reduce our
over dependence on them. This is taking
time and I am never satisfed with what I A.The common tool that one adopts
have done. is what is called bench marking. For this
the steps are identifying relevant com-
There is also a need for continuously petition, determining the attributes of
training and enhancement of people the product or services which the target
skills. We have taken several steps to customer considers most important, study
formalize the training and knowledge the performance of each of the compe-
transfer process but there is a lot more to tition against each of the attributes and
do. compare the performance of one’s own
www.icmai.
The Institute of Cost Accountants of India
product or services sold, must deliver to Q.
survive, it has to sell competitively. The
In terms of long term growth
a promise. An aggregate of many such and sustainability factors, how
units comprise the nation. Sustainability
and growth are synonymous as one need does cost competitiveness matter
to grow to sustain. with respect to your own organiza-
tion?
Branding gives hype and gives relief to
cost ineffciencies, albeit temporarily. In
the long run, an organisation must be A. In the case of my organisation, it is
cost competitive. Similarly, trade barriers not only cost competitiveness but also
to give temporary relief to nations but technology upgradation and innovation
these measures have time limitations. which are important to survive in the long
term. This requires a strong and compe-
Q. Do you think that current mark our products with that of competi-
tent R&D Team who will always bench
strengths of your esteemed organ- tion, keep a track of the new develop-
ization are adequate to cope with ments in technology and absorb them
to produce superior products. Discipline
competition or need modifcations? and controls can limit cost increases, but
revolutionary break through can happen
only with technological innovation. That
A. Organisation strengths are never is why, both are important.
adequate since market changes take
place continuously and one needs to Q.
adapt and respond to such changes. In In order to obtain a fair view
my organisation, I am currently coping
with the worst ever downturn in our key about the performance of the or-
sectors of coal, power and iron ore. ganization, how to position the
cost aspect from the competitive
Our response is now to diversify out of point of view?
these core sectors so as to reduce our
over dependence on them. This is taking
time and I am never satisfed with what I A.The common tool that one adopts
have done. is what is called bench marking. For this
the steps are identifying relevant com-
There is also a need for continuously petition, determining the attributes of
training and enhancement of people the product or services which the target
skills. We have taken several steps to customer considers most important, study
formalize the training and knowledge the performance of each of the compe-
transfer process but there is a lot more to tition against each of the attributes and
do. compare the performance of one’s own
www.icmai.
