Research On Strategic Cost Management In Growth-type Small And Medium-Sized Enterprises

As the economic rapidly developing, customers' demand tends to individualized, changeable and internationalized, that causes the competition in international market intenser and deeply influences the modes of economic and enterprises. In order to get the room of survival and development, enterprises learned to cultivate long-term competitive advantage in the view of strategy. As for cost management, we not only need to widen the scope of the traditional cost management but also need to develop its methods. By doing that, we can construct a strategic cost management system which will be compatible with the strategic management system.Chinese growth-type small and medium-sized enterprises have good development prospects and do tremendous contribution for China in economic stabilization, employment promotion, export increasing and social service providing and so on. Their development is of great importance to Chinese economy. However, there are many flaws in the cost management of Chinese growth-type small and medium-sized enterprises, which weaken their competitive and cause them not to develop rapidly and successfully.In this paper, the author produces as viewed from an enterprise manager that Chinese growth-type small and medium-sized enterprises should consider strategic target and combine the long-term benefits and short-term benefits during their cost management so that they could achieves with a clear goal. Chinese growth-type small and medium-sized enterprises could analyze the influence of out and inner environment changes and the situation of their competitor and themselves with tools such as strategic orientation, value-chain analysis and cost driver analysis etc in order to discover key success factors and determine competition location rationally. Then they could reconstruct the value-chain to enhance the enterprise value and take adjustment measures based on cost drivers to control the cost from the beginning. Only then, Chinese growth-type small and medium-sized enterprises could fully use their potential to get and keep the competitive advantage, seeking larger development.The author hoped that the research on strategic cost management in Chinesegrowth-type small and medium-sized enterprises could provide them some useful and referable information and wish that they could obtain long-term competitive advantage and make it in the competitive market by carrying on strategic cost management system.