Study On Businesses Cost Strategy Detailed Abstract

With the transfer of our country's economic system, increasingly improvement of market economy and speeding up of progress on integrity of global economy, competence between modern businesses has become more serious. Today, more and more multinationals invest in china. At the same time, many Chinese corporations build their factory abroad. No matter foreign companies invested in china or Chinese companies in foreign countries, we can see they are trying to occupy the share of the whole market. If they hope to possess a large share of market, it is the best way to reduce the cost of their products and make the lower price or goods. So low cost strategy emerge as the time require.. This thesis focuses on the theory basis adopted by businesses and some steps of low cost strategy adopted by businesses through the combination of my working experiences for many years. Although low cost strategy exist many advantages, it also has some shortcomings. Traditional cost management strategy emphasizes only specific manufacturing cost such as manufacturing and processing, however, the thesis focus on the cost control of whole procedure which includes design of product, purchases of material, producing plan, manufacturing, quality control, marketing and sale service of products as well as specific implement measures. This thesis also put forward relative checking ways and encouragement and control to ensure the effective implementation. How to effectively reduce the cost and increase the profit of company have become the key to a company's success. Only the effective low cost strategy system of a company can the cost be controlled from the whole process and create good predetermin ing conditions for the company's victory to competence in the market.