Applying The Value Creation Model in tire industry
Understanding of the relationship between the costs of the firm and the value the firm provides to its customers is the key to the ability of the firm to reach its profit potential. The objective of this research is to determine how to identify the relationship between costs and value by introducing...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Shahid Bahonar University of Kerman
2010-06-01
|
| Series: | مجله توسعه و سرمایه |
| Subjects: | |
| Online Access: | https://jdc.uk.ac.ir/article_1918_f5a7308a9095774cae08246e040a45af.pdf |
| _version_ | 1797835598345535488 |
|---|---|
| author | Ahmad Khodami pour, Ph.D Esmaeil Farzaneh Kargar |
| author_facet | Ahmad Khodami pour, Ph.D Esmaeil Farzaneh Kargar |
| author_sort | Ahmad Khodami pour, Ph.D |
| collection | DOAJ |
| description | Understanding of the relationship between the costs of the firm and the value the firm provides to its customers is the key to the ability of the firm to reach its profit potential. The objective of this research is to determine how to identify the relationship between costs and value by introducing and applying the value creation model (VCM). This research is a case study in which we have use a survey. In this study on the basis of value creation model, the firm cost structure has been define in terms of value added, non-value added but required activities, as well as of waste. Also, the trade-off between what the customer is willing to pay for a product/service bundle (value) and the cost the firm bears to provide what the customer desires was assessed and according to this trade-off the value multipliers were computed for each bundle. There is of study help firm manager to determine the activities which should be focused on to develop the competitive advantage. More there, this article while be a part of emerging literature on strategic cost management, extends the existing knowledge of the relationship between costs and value. |
| first_indexed | 2024-04-09T14:55:12Z |
| format | Article |
| id | doaj.art-3b35087f61e54fb48296e652c2163229 |
| institution | Directory Open Access Journal |
| issn | 2008-2428 2645-3606 |
| language | fas |
| last_indexed | 2024-04-09T14:55:12Z |
| publishDate | 2010-06-01 |
| publisher | Shahid Bahonar University of Kerman |
| record_format | Article |
| series | مجله توسعه و سرمایه |
| spelling | doaj.art-3b35087f61e54fb48296e652c21632292023-05-02T06:51:11ZfasShahid Bahonar University of Kermanمجله توسعه و سرمایه2008-24282645-36062010-06-013110713110.22103/jdc.2010.19181918Applying The Value Creation Model in tire industryAhmad Khodami pour, Ph.D0Esmaeil Farzaneh Kargar1Assistant Professor of Accounting, Shahid Bahonar University of Kerman, Kerman, Iran.M.A. of Accounting, Shahid Bahonar University of Kerman, Kerman, Iran.Understanding of the relationship between the costs of the firm and the value the firm provides to its customers is the key to the ability of the firm to reach its profit potential. The objective of this research is to determine how to identify the relationship between costs and value by introducing and applying the value creation model (VCM). This research is a case study in which we have use a survey. In this study on the basis of value creation model, the firm cost structure has been define in terms of value added, non-value added but required activities, as well as of waste. Also, the trade-off between what the customer is willing to pay for a product/service bundle (value) and the cost the firm bears to provide what the customer desires was assessed and according to this trade-off the value multipliers were computed for each bundle. There is of study help firm manager to determine the activities which should be focused on to develop the competitive advantage. More there, this article while be a part of emerging literature on strategic cost management, extends the existing knowledge of the relationship between costs and value.https://jdc.uk.ac.ir/article_1918_f5a7308a9095774cae08246e040a45af.pdfvalue creationstrategic cost managementcustomer satisfactionprofit potential |
| spellingShingle | Ahmad Khodami pour, Ph.D Esmaeil Farzaneh Kargar Applying The Value Creation Model in tire industry مجله توسعه و سرمایه value creation strategic cost management customer satisfaction profit potential |
| title | Applying The Value Creation Model in tire industry |
| title_full | Applying The Value Creation Model in tire industry |
| title_fullStr | Applying The Value Creation Model in tire industry |
| title_full_unstemmed | Applying The Value Creation Model in tire industry |
| title_short | Applying The Value Creation Model in tire industry |
| title_sort | applying the value creation model in tire industry |
| topic | value creation strategic cost management customer satisfaction profit potential |
| url | https://jdc.uk.ac.ir/article_1918_f5a7308a9095774cae08246e040a45af.pdf |
| work_keys_str_mv | AT ahmadkhodamipourphd applyingthevaluecreationmodelintireindustry AT esmaeilfarzanehkargar applyingthevaluecreationmodelintireindustry |