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Evaluating the relevance (importance) of strategy in controlling business operation costs

Author: 
Dr. GYASI, Evans Akwasi and CHUNG, Kristen Ka Yee
Subject Area: 
Social Sciences and Humanities
Abstract: 

Operations and project cost overrun is one of the many challenges faced by businesses in this current global market. The effects of cost overrun are numerous ranging from loss of profit, threat to business competitiveness and survival and many others. Therefore, the need a strategy that incorporates cost control cannot be over emphasized. This article discusses the different cost control techniques that can be employed when drawing a business strategy. Expert judgements from professionals in the oil and gas industry was gathered using a semi structured interview technique for the purposes of analysis for this structure. The findings revealed that one cost control method cannot be used to manage project cost overrun and hence integration of several cost control techniques relevant to a business is the way forward.

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