STRATEGIC COST MANAGEMENT - PRELIMINARY LESSONS FROM EUROPEAN COMPANIES

Entrepreneurial drive, technology, and productivity are three characte ristics which give many European companies a role of worldwide importa nce. This article describes strategic cost management within the frame work of strategic management reflecting the current European approach. The conclusion is that at present European companies (1) are making c ore competencies the guiding ideas of their strategies, and (2) are st riving aggressively to increase their value, first by reengineering pr actices, and second by 'inventing' new markets and satisfying all stak eholders, not only the shareholders, better and quicker than the compe titors or other reference companies are able to do.