Strategic Cost Management Study Of Small To Medium Sized Enterprises

This is our best time as we are having a much stronger national strength, a higher standard of living, a highly developed technology and a regulated market of environment. This also is our worst time as the competition is getting tough, customers becoming nit-pickers, the level of loyalty of brand name is dropping and the enterprise is now facing a more complex customer's community. Nowadays, the concept of tactics or strategy is gradually introduced into the business environment as a form of business strategy management. Under the new concept, it seems that the traditional method of cost accounting emphasized too much on providing internal data within the organization and ignored the environment changes, made it become the attachment of financial accounting.Therefore, it should be the new trend for cost management to focus and hang together with strategy.LJJ is a manufacturer and distributor of Chinese saucing enterprise and has a highly developed market in foreign countries. The company has entered the Chinese market since the Chinese's government opened its domestic market around ten years ago. LJJ is currently at expansion phase amongst her small to medium sized competitors. LJJ also has benefited and achieved a steady growth through balancing the cost of expansion and efficiency, whilst other companies treat these two issues in different aspects. How's LJJ expanding continuously? Can LJJ maintain her strengths and advantages under this competitive Chinese saucing industry? In order to help LJJ in achieving its goal - "Becoming the market leader" in the Chinese saucing industry and also provide information for all small to medium sized enterprises to understand the concept of "Strategy costing management" . This article gathers a lot of internal and externalinformation and analyzes LJJ's current position, value chain and all other costs factors from the massive of Chinese and foreign strategic costing concepts and thoroughly understanding of business operation. It's also re-affirms the successes of LJJ's strategy costing management and provides reference for all small to medium sized enterprises.