Cost Management Strategy in Higher Educations

Abstract

Cost management strategy is a programme for business use in order to regularly identify and analyze cost drives to lower the costs and to maximize total value. By implementing the effective cost management strategy an institute can not only lower their costs but also create a strategic competitive advantage. There are three components of cost management strategies. The first one includes its core functions which comprises of nature of business, planning, product development and research. The next one includes added value activities like customer service, technical support, marketing, sales and manufacturing. And the last one deals with those activities that support core activities like IT,  human resources, general administration, accounting etc.