Study On Jiujiang Power Plant's Cost Leadership

Strategic Management is important to a firm's continual development. The strategic management process consists of three stages: strategy formulation, strategy implementation, and strategy evaluation.With the market economy's reform, firms in generate electricity are studying on strategic management. Cost leadership is their only choice under the framework of electric utility industry and character of product. With competing from strength to strength, It is an important task to power-making firms in generate electricity how to find right strategic mode, formulate effective cost leadership, increase income through reducing cost what base on analyze firm's the external and internal assessment. Jiujiang power plant is a typical firepower plant in Jiangxi province and center region of China. In the face of Electric power reform on power plant is separated from electric power transmission and price competition, plant's extensive planned management mode was inapplicability. So it must be solved how to formulate and implement cost leadership according with its actual condition.This article studies the problem in theory and practice.The author started studying with external assessment of Jiujiang power plant. In particular to new change of electric power reform, article described the firm's opportunities and threats. Then, combined with plant's actual condition, this paper draw a conclusion on external opportunities kept the weather to external threats and internal weaknesses kept the weather to internal strengths.Based in the conclusion, this article wrote Jiujiang power plant's mission statement, long-term objectives and strategy in the mass, and under the framework of electric utility industry and character of product, cost leadership is only choice for Jiujiang power plant. Later, author analyzed plant's content and character of cost, draw a few ways to reduce cost basic with building up idea of cost leadership and perfecting its cost management. Those have actual value to plant's strategic management.In the end, this article analyzed and summarized strategic control to the point.