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Study On Dynamic Strategic Cost Management

Posted on:2008-08-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:G J TianFull Text:PDF
GTID:1119360215455219Subject:Accounting
Abstract/Summary:PDF Full Text Request
Now we are competing in a real-time, three-dimensional, global, open and free space. In this hyper-competitive dynamic environment, only those enterprises that follow the trend of times and hence initiate efficient management will not be defeated. Any enterprise that desires to form dynamic operating advantages and gain success must predict possible environmental changes with experience and foresight, and realize or maintain corresponding activity combination options on every aspect, paving the way for establishing a dynamic strategic system in line with interior and exterior environments.Strategy is becoming more and more flexible, so an enterprise must integrate its internal resources and capability, and make flexible, fast and timely dynamic responses to the rapidly changing and dramatically fluctuated market, so as to gain long-term competitive advantage. Costs are the key to strategy, and strategic management gives rise to strategic costs. Dynamic competitive environment and competitor's behavior have broken the relative balance of an enterprise's strategic cost management and impelled the enterprise to review its competitive strategy and strategy-oriented cost management from a dynamic angle. So the author thinks it is necessary to research on dynamic strategic cost management, and hopes to bring some support for the development of this field.This thesis contains 8 chapters, with the detail of each chapter as follows: Chapter1: Literature review. This chapter illustrates the significance, structure, thoughts, methods and main innovations of the thesis.Chapter 2: Basic theories of dynamic strategic cost management. This chapter discusses the impacts of flexible strategy theory, complex theory, dialectics theory in philosophy, transactional costs dynamic theory, dynamic economic analysis methodology theory, broad sense turn of cost theory and dynamic systematic theory on cost management. On this basis, the thesis defines the connotation of dynamic strategic cost management, and establishes the framework of dynamic strategic cost management on basis of a model of tumbler placed small ball of intelligence inside.Chapter 3: Environmental scanning of dynamic strategic cost management. This chapter illustrates scanning content of macro environments, competing environments and interior environments and their changes. It also expands and improves the environmental analysis methods, discusses the factors influencing costs control in the process of environmental scanning, with the example of SWOT analysis and strategic choices of a branch of E-commerce Company. In addition, the thesis discusses the problem of environmental scanning costs.Chapter 4: Integrated analysis of dynamic strategic cost management. This chapter illustrates the content of integrated analysis-strategic position analysis, value chain analysis, cost driver analysis and their dynamic realization, and offers analytical tools for an enterprise to form its cost competitive advantage through the extensive analysis of such cost management methods as TC and ABC.Chapter 5: Restructuring of dynamic strategic cost management. By putting forward such concepts as strategic resource integration, competitive strategy integration, strategic transformation and evaluation of an enterprise's competitiveness, this chapter has enriched strategic management with the system of both"flexibility"and"sustainable change"and explored the cost-effectiveness of strategic resource integration, restructuring among cost-leadership strategy and other competitive strategies and dynamic performance evaluation on the outcome of restructuring.Chapter 6: Instantaneous decision-making of dynamic strategic cost management. This chapter has made an analysis on the strategic competition by way of game theory and proposed cost competitive reaction model and accordingly simulated strategic competition, and instantaneous decision-making concept based on the speedy competition, cost budget and cost imitation.Chapter 7: Risk monitoring of dynamic strategic cost management. This chapter has probed into strategic risk and crisis, cost of risk and crisis as well as the risk and crisis monitoring strategy, based on the interpretation of information strategy, with Chery as a case in point to illustrate its competitive strategic risk and risk monitoring strategy. Chapter 8: Conclusions, limitations and suggestions on the follow-up studies. In this chapter, the main conclusions of this thesis are summarized, research limitations pointed out and suggestions on the follow-up studies proposed. In this thesis, many research methods, such as,logical deduction, induction and summarization, comparative analysis, case analysis, modelings setting up are employed. The detailed characteristics are as follows:First, it combines traditional theories and path-breaking innovations. Based on reference to the complex theory, flexible strategy theory, dialectics theory, transactional costs dynamic theory, dynamic economic analysis methodology theory, broad sense turn of cost theory and dynamic systematic theory, this thesis has acquired connotations of dynamic strategic cost management by induction and deduction, which can be found in the content of the following thesis.Second, it incorporates multi-factor comprehensive analysis and key-factor analysis. Dynamic strategic cost management includes such five sub-systems as environmental scanning, comprehensive analysis, restructuring, instantaneous decision-making, risk monitoring. This thesis has analyzed the above five sub-systems with focus on comprehensive analysis, restructuring and instantaneous decision-making of dynamic strategic cost management.Third, it combines theoretical analysis and case analysis together. In addition to theoretical analysis, this thesis, has analyzed such cases as SWOT analysis and strategic choices of a branch of E-commerce Company, Dell's dynamic value chain, Haier's information resources, evaluation of a retailing enterprise's competitiveness, Chery's strategic risk and risk control strategies.Fourth, model measurement is coupled with fuzzy judgment. As this thesis involves a wide range of topics, therefore, it is essential to adopt the combination of mathematical modeling and fuzzy judgment for the illustration. This thesis has referred to many mathematical computation models and graphical models, such as a model of tumbler placed small ball of intelligence inside, strategic positioning model, cost competitive reaction model and risk and crisis strategic management model.Main innovations in the thesis include:First, at present, the theoretical literature of dynamic strategic cost management is insufficient home and abroad. This thesis has conducted an in-depth study, which bridges the gap in this research field to some extent and paves the way for its future development. This thesis is based on the competitivestrategy in the dynamic business context, so the study follows the trend of our times and practical needs, in line with the direction of future development. Second, this thesis clearly defines the concept of dynamic strategic cost management as a management system in which strategic cost management has a dynamic framework. Concretely say, as an enterprise in a changing competitive environment, through rapid environmental scanning and dynamic comprehensive analysis, it constructs the best strategic structure and achieves instantaneous decision-making based on resource integration, impels the relative improvement of an enterprise's competitive position, and remains the reasonable risk control. Dynamic strategic cost management involves such five characteristics as competitiveness, foresight, integration, timeliness and risk. This thesis considers building cost competitive advantage is task of dynamic strategic cost management, strategy and dynamism is source and foundation of building cost competitive advantage.Third, this thesis has discussed the operation of dynamic strategic cost management overall system and constructed the research framework, based on"a model of tumbler placed small ball of intelligence inside", including environmental scanning, comprehensive analysis, restructuring, instantaneous decision-making and risk monitoring, and explored the cost competitive advantage based upon this framework. In this thesis, it can be noted that the operation process of these system factors is a long-term, circular, dynamic and timely one. The dynamic strategic cost management overall system depends on the quality of sub-systems and relatedness with each other.Fourth, this thesis still includes the following innovative academic standpoints: Firstly, there should be some improvements on the traditional cost management methods (such as TC and ABC). So we have to rebuild target profit and target cost, keep dynamic monitoring and continuous combination on the trend of activity. Secondly, the strategy shift is a special form of strategy transformation and evaluation of an enterprise's competitiveness is an effective form of the performance evaluation on the strategy transformation. Carrying on a choice to project of multi-stage strategy transformation is on the basis of dynamic evaluation of an enterprise's competitiveness before or after transformation. Thirdly, the key to successfully formulate and implement the strategy lies in the emphasis on the competitors'reaction and speed-up decision-making. We should support strategic instantaneous decision-making by cost competitive reaction model, cost budget, cost imitation and expansion of cost forms.In this thesis, there are some defects, such as inadequate compatibility between case and theory, unreliable concrete evidence about the empirical statistics, incomplete dynamic system building. Due to the limited existing research literature in this field, the author's humble knowledge, as well as exclusiveness and confidentiality of cost-data information, it is extremely hard to conduct a comprehensive analysis of"dynamic strategic cost management"in a much deeper sense. There are inevitably some inadequacies or even errors in the thesis, so the author calls great attention to the follow-up study.
Keywords/Search Tags:Dynamic strategic cost management, Environmental scanning, Comprehensive analysis, Restructuring, Instantaneous decision-making, Risk monitoring
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