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
Strategic cost management: preliminary lessons from European companies
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.