Factors influencing effective cost management within South Africa’s retail banking sector

Abstract

Today, organisations are faced with drastic economic challenges which include, the global financial crisis, credit crunch, globalisation and increased competitive forces. As market share shrinks, organisations strive to find new customers, and increase its bottom line, by adequately managing costs. The objective of cost management practices is to ensure that organisations have a true understanding of costs, so that it can continuously make the right decisions with regards to product mix, price and market. This research uses a qualitative methodology to uncover how the South African banks currently use costing principles. This is achieved through semi-structured long interviews with individuals, who are directly responsible for this function within their respective organisation. <p.The conclusion offers a conceptual cost management framework, which is made up of a number of key models to assist an organisation mature in their cost management practices. It is evident from this research that the banks in South Africa are relatively immature; therefore, they require a focus on efficient and effective cost management practises. Copyright