On cost control on the implementation of the strategic cost management（对成本控制的实施战略成本管理）

1、 On cost control on the implementation of the strategic cost management Summary of the face of fierce market competition, many companies will cost competitiveness as the core, which requires the enterprise to maximize the cost-reduction, but, for most enterprises, the traditional method of cost cont

2、rol has been done, but often limited success, these cost control measures to reduce the cost of the space was too small, and often at lower cost control over product quality, quality of service to be weakening, which in the long run but weaken the competitiveness of enterprises. In fact, the reason

3、for this phenomenon is that these companies only to see the company in place various kinds of explicit costs, but then all kinds of companies hidden costs turn a blind eye to these hidden costs of the control, in addition to The traditional means of cost control, but also from the corporate strategi

4、c level to consider the cost reduction, cost control and enhance the competitive advantage linked. The so-called cost control, the enterprise according to the cost of a certain period of pre-established management objectives, cost control by the subject in its terms of reference, in place before the

5、 production cost and cost control process, a variety of factors and conditions affecting the cost of taking a series of preventive and regulatory measures to ensure that cost management to achieve the objective of management behavior. As the complexity of enterprise economic activity and by the impa

6、ct of external conditions, making the control objectives of cost control both moving in this direction, also moving in that direction. Only if the accused objects to a direction of development may nature, it does not require control. cost control with optional, since cost control was charged with th

7、e development of object there are several possibilities, so we can take some control methods to make towards our selected given direction, which is the main purpose of the implementation of control in the cost control process, in order to exercise control over an economic business, may make a number

8、 of cost control models, methods, and other programs to choose from. cost control with a comprehensive, continuous and systemic features. 1 Overview of Strategic Cost Management Strategic Cost Management Cost management is an important branch, which is based on strategic management theory, the theor

9、y through the traditional cost function of the system to expand the emerging field of management, from strategic level to manage costs, so it is relatively traditional cost management more comprehensive, systematic, long-term. The basic idea include the cost of the origins of thinking, and thinking

10、to match the corporate strategy, cost management measures into the idea, and the cost of training staff awareness. From the 1950s, the world entered the era of an update (it was called the era of post-industrial era, or mutation. Into the 50s, the customer needs have changed significantly, enterpris

11、es of political, economic, cultural and natural environment and in the past compared to the competition more intense, rapid development of science and technology, so that enterprises are facing many challenges and many unexpected emergencies. In this case, the business must conduct in-depth analysis

12、 of the environment and adopt new management methods, seek the development of enterprises. It is because of the times has led to changes in business environment changes, changes in business environment to promote the development of management science, in keeping with this trend, strategic management

13、 came into being. the core of strategic management is to seek business sustained competitive advantage. competitive advantage is the core of all strategies, which ultimately comes from the enterprise to create value for customers, this value should exceed the cost of the enterprises to create it. Bu

14、siness management concepts and management techniques of the above changes, the traditional cost management had a huge impact, cost management requires new ideas, changes in technology in order to meet the needs of strategic management, on the one hand into the cost management accounting and strategi

15、c management with integration on the other hand, the introduction of management accounting in strategic cost management thinking, to achieve a strategic sense of the extensions to form a strategic cost management (Strategic Cost Management, SCM. It is obvious that the generation of strategic cost ma

16、nagement is one strategic management in order to meet the needs of the other is the cost of traditional enterprise management system and its own shortcomings, their own need for change. 2 The implementation of strategic cost management Cost reduction from the strategic level can follow the following

17、 three steps to assess the cost-cutting space. First, analyze the industry value chain, companies in the industry to see the location, the industry value chain, how the profitability of all sectors of the industry value chain, how the cost of distribution, to determine whether there is industry ente

18、rprise vertical and horizontal integration of merger opportunities. That is, by adjusting the companys business model and profit model, the structure changes from place to achieve corporate cost control costs and enhance business competitiveness objectives. This is a typical example of association a

19、nd DELL. Lenovo is Chinas oldest PC, DELL is PC Worlds oldest, neither professional technology as the core competitive power, but through the control of distribution channels as a core competitive advantage, but the association and the different approach taken DELL, Lenovos core competitive advantag

20、e is the efficient distribution system control and management, and DELL is completely different, it completely abolished the distribution chain, direct way to contact customers directly and to reduce costs and improve service quality and gain competitive advantage. Links to free download http:/ eng.

21、 Second, the strategic cost management, the second step is to analyze the companys management and organizational structure, cost control through the bureaucracy to reduce costs for companies, when companies grow later, there are many aspects of the cost of waste is hidden, not easy to find

22、this the most important is the cost of corporate bureaucracy. bureaucratic costs refers to the enterprise scale occurred after the coordination and communication costs which are often at the expense of reduced efficiency occurred. Here we were still Lenovo example, we all know the PC Lenovo in the 1

23、990s were to have two production and distribution business - Digital and Lenovo. From a purely business perspective, Lenovos PC production and its distribution system, the synergy is obvious , and both of the value chain can be the perfect combination, though how close to the situation, we do not kn

24、ow. But it is certain that Lenovo is one important reason for the separation of the rising cost of corporate bureaucracy, as the business expanded, co-ordination between departments, communication, PC production and sales of collaboration, the market often requires a lot of communication and feedbac

25、k coordination costs, respectively, became the last resort option. In addition, the group management model appropriate choice, but also from another point of view for enterprises to control costs, and that is the size advantage when firm size and growth, the firm often those with the scale advantage

26、s of the management functions of control resulting in cost benefits of scale, such as domestic and foreign groups used by many companies focus on procurement, so companies can select the appropriate group management model, a variety of functions headquarters and subordinate authority in a reasonable

27、 division between enterprises, which make full use of advantages of scale, while the maximum degree of reduction of corporate bureaucratic costs. Finally, companies can also improve the value chain to reduce costs within the Michael Porters value chain analysis model for understanding the operation

28、of enterprises have a very big help, from the perspective of business operations, value chain is the process of creating corporate value and gradually , but also the process of unfolding in business costs. value chain activities of the enterprise value of the conversion of part of the cost of the oc

29、currence and, therefore, companies should be the value of the internal value chain activities to analyze the costs and benefits, for those who are not economic , necessary to control or reduce the value of activities, thereby reducing costs. For each value of the internal value chain activities in a

30、 cost-benefit analysis, value engineering methods can be analyzed, first analysis of the value of the activities within the enterprise value chain function, followed by analysis of the need for businesses to invest in value-added activities which elements of the business activities of these values ?

31、which produce output value of these activities occur according to the amount of the cost to sort, what the value of the cost of a major event is often the focus of management control, while another based on cost and value of the amount of activity occurs within the value of a comprehensive analysis,

32、 resulting in a need to reduce the value chain of activities or outsourcing in an analysis of value-added activities, companies can reduce the value of those activities or not economic reconstruction, restructuring the enterprises reduce the value of activities to control costs. 3 Conclusion Currently, the Made in China to low-cost advantage of sweeping the globe, but this cost advantage is ba