The Study Of Cost Strategy Based On Enterprise Life Cycle

Cost issue is the eternal subject of economy, management and accounting. The research on cost strategy was emphasized more and more seriously because of the more and more intensive competence of the market economy and the globalization of the world economy. In order to actualize sustainable development, with lesser input and more effective output, enterprises must pay more attention to cost issue. With the direction of Porter's overall cost leadership strategy, scholars put forward some cost management methods with strategic factors. However the research ignores use condition of cost strategy and doesn't embody to different periods of enterprise life cycle. In this article we bring forward the ultimate goal of cost strategy is that the average unit cost during enterprise life cycle is under competitors. In order to realize the goal, cost strategy should be emphasized in different patterns in different period of enterprise life cycle.Standard analysis methods are adopted in our research. With the basic of compartmentalizing enterprise life cycle and making use of existent strategy orientation analysis methods, we put forward different cost strategies in different periods of enterprise life cycle according to enterprise and finance characteristics. And we combine standard analysis and case analysis to explain the applicability of a certain cost strategy in a special life period. The paper is divided into five parts as follows:The first chapter: Introduction. We introduce the research backgrounds of the paper and bring forward the issue we will study on. We get down on the elements in enterprise life cycle and research the issues residing in the management of enterprise cost strategy based on the periodic alteration of the enterprise.The second chapter: Literature summarization. We analyze and appraise relational theories of cost strategy. And then introduce the basic theory of cost strategy and theory category of enterprise life cycle.The third chapter: Overall cost leadership strategy and environment analysis. We discuss the meaning and applicability of overall cost leadership strategy, and explain the necessary of constituting cost strategy according to different periods of enterprise life cycle. We analyze inside and outside environment and cost driver, because it's the jumping-off point of the form of cost strategy. And we bring forward the ultimate goal of cost strategy is that the average unit cost during enterprise life cycle is under competitors.The fourth chapter: The cost strategy models based on the periodic alteration of...