Strategic Management Thought

The Role of Strategic Cost Management in Improving Customer Satisfaction; A Case Study: IRAN Khodro Company

Authors

1 Associate Professor of Management, Imam Sadiq University, Tehran

2 MA of Industrial Management

Abstract

This study at first attempts to introduce the concept of “Strategic Cost Management” as a new approach, and also as an effective method, and then it will try to examine the impact of its application on improving customer satisfaction in the IRAN Khodro Company.
The main objective in this inquiry is to find out if using different cost management techniques in IRAN Khodro can improve its customer’s satisfaction and consequently can also enhance its market position.
A literature survey on the topic of strategic cost management, and its undergoing techniques, was performed and the summary of its finding is presented in the first part of this paper. Then, the case of IRAN Khodro is fairly introduced, with all the necessary information for logical analysis and conclusions. However, the emphasis was first on the company’s strong policy for cost reduction (particularly reducing the cost of their main brand, SAMAND), and then also their priority for customer satisfaction based on two factors: “cost” and “value”.
To do this, a proper questionnaire was designed and was distributed among two distinct groups of SAMAND Taxi owners (the first group’s car is made in the years 1384 and before, and the second group’s car in the years 1385 and after).
These questionnaires, and the other related data, were gathered and analyzed by SPSS software. The results in brief indicate that the price of their cars (costs) have not been reduced as was expected and further, the level of customer value has also demonstrated a considerable decline over the period of the project.

Keywords

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Strategic Management Thought
Volume 4, Issue 2 - Serial Number 2
October 2010
Pages 149-182
  • Receive Date: 22 January 2011
  • Revise Date: 23 September 2010
  • Accept Date: 26 February 2011