The Application Research Of Strategic Cost Management In Our Iron And Steel Industry

The strategic cost management is the product which the strategic management and the cost management is unified. The birth of the strategic cost management, on one hand is to meet the need for the enterprise's strategic management, on the other hand, is to meet the need for the transformation of the enterprise's traditional cost management system. The strategic cost management is still a theoretic problem and a realistic problem which should be solved. Now the iron and steel enterprises of China are under complex conditions and face the cost pressure. It urgently needs them to adsorb the new idea of the strategic cost management theory, and at the same time, there is application feasibility for the strategic cost management theory in China because of the iron and steel enterprise's manufacture flow and the cost management's characteristic. The purpose of this article lies in attempting to provide one new cost management to the iron and steel enterprises of China and making them reduce cost consistently and enhance the competitive advantage. This article has mainly used the standard analysis, the comparative analysis and the case study analysis. The author innovatively proposed the basic methodology system of the strategic cost management theory as well as the concrete procedure of the strategic cost management and made present strategic cost management theory's framework further rich and perfect. The author elaborated how the strategic localization analysis tool, the value chain analysis tool, the cost driver tool as well as the strategic achievements appraisal system are applied in the steel and iron enterprises. At the end, the author conducted a concrete case study.