Applied Research On Strategic Cost Management To Cost Control In Hotel

With the help of modern information and communication technology, strategic cost management turns to be a new and developing management by way of expanding the traditional cost management function, which emphasizes the core competencies. The integration of strategic management into the essential characteristics of hotel industry forms a fundamental framework of hotel industry strategic cost management analysis. Throughout the whole thesis, it puts forward a newly modern cost system-strategic cost management, explicates how apply it well to the hotel cost management, and points out the shortage of traditional cost management by analyzing the recent tendency of hotel development. At the last part of thesis, it mainly does a deep research on the pending issues while applying strategic cost management to hotel management and get the conclusions, thus this thesis is composed of seven main parts.The first part, introduction, includes analysis of recent develop of hotel development, the shortages of traditional cost management, comments on the internal and external research situation as well as the main techniques train of thoughts and significance of doing this research. Clarifying the status quo and facing issues of modern hotel industry, it points out tour shortages of the traditional cost management, while strategic cost management rightly makes up those deficiencies which are regarded to be a great innovation and supplement to tradition cost management.The second part explicates many issues dealing with strategic cost management including its definition, characteristics and its specialty applied in hotel industry. Strategic cost management is the key to the core competencies that make it have four characteristics, namely, it is export-orient, competitive, longer and all-round, which helps distinguish it from traditional cost management, and strategic cost management is feasible to the characteristics of hotel industry, so that its application will make great significance to the cost control in hotelThe third part explains how distinguish and integrate value chain of hotel industry. It gives details in the ideology of value chain, the value chain structure, value activity analysis, as well as optimization of internal value chain and harmonization of external value chain. The ideology of value-chain management is a new thought that integrates all the resources and all the factors, related to the creation of value. On one hand, enterprise creates value that takes in the product and service; on the other hand, the consumed resources turn to cost; meanwhile, cost management is converted to the value activity management just when the productive and operational management is regarded as a kind of value activity. This chapter rightly analyses value activities-essential activity and auxiliary activity, and their characteristics and position ofcost control, and clarifies the difference and relationship between them as to find out the way to reduce cost.The forth part analyses the causes that stimulate cost-cost driver analysis in the hotel industry, include structural cost driver . executive cost driver and tactical cost driver. Based on the value-chain analysis, it is important to find out cost produces in the course of value activity, what' s more, to find out the causes of producing cost-cost driver, so that it is easier to make a measure and ensure the efficiency of strategic cost management, and gradually attain its given target. Strategic cost driver analysis breaks through the limits of traditional cost management, and takes a new measure to analyze whether the cost should be produced or not. Structural cost driver analysis asks for choosing business scale. variety and location etc, while executive cost driver analysis asks for quality management productive efficiency and activity arrangement. In addition, this chapter explains activity-based costing (ABC), which involves in the whole process of operation and management, and emphasizes the causes of operation. Comparing with traditional cost system, ABC is a...