Studies On Strategic Cost Management In A Automobile Company

The dazzling development of information technology, especially the sweeping influence of the Internet, making global sharing of knowledge, technology and information possible, has greatly precipitated internationalization of enterprises' production and management in that resources are no longer distributed within the sphere of one enterprise or one area, but on a global scale. In the mean time, modern market has completed the transformation from a seller's market to that of buyer's. Such drastic changes of market situations intensify already fierce competition in world market, forcing enterprises to resort ever so increasingly on cost control so as to sharpen their competitive edges. Therefore, the competition among enterprises has largely become one of cost control. In this light, managerial cost accounting, which is still used by most domestic enterprises, can no longer adapt to the above-mentioned changes in economic environment. To sharpen their competitive edge, introduction of new cost control models is uttermost necessary. Because strategic cost management (SCM) is international and competition oriented which takes long-term interest and comprehensive factors into consideration, it has increasingly been accepted by more and more enterprises.Using theories on SCM, the present dissertation analyzes the possibility of introducing SCM into the present managerial cost accounting system in A Auto, so that its cost management will not be confined within the enterprise itself, but extend to the whole industry. To do so, the dissertation first analyzes the company's competition environment, value chain, strategic positioning, and cost drivers so as to establish an assessment system of strategic cost; then demonstrates its feasibility while pointing out its shortcomings and possible solutions. The research is done in an aim to help A to gain a advantageous position in the fierce competition in domestic auto industry, and hopefully provides a possible model for other state-owned enterprises in strategic cost management.