Research On Application Of Strategic Cost Management In AFG Company

To obtain sufficient profits is premised for the survival and development of enterprises, and the most direct and effective way to get profits is to reduce costs, therefore enterprises through better cost management to enhance their competitive edge. .AFG Company is a foreign manufacturer company of float glass. When it operation starting since 1995, it has losing money for most of the year, the losses are many reasons. Cost Management is one of the reasons behind, especially in an intensely competitive market, the sale prices are low, cost management issues will become more pronounced.With the current trend of global economic integration has accelerated, economic and environmental factors to increase further, the uncertainties facing enterprises and the growing number of traditional cost management has demonstrated the limitations of certain unsuited to the times. If enterprises are still the same as before, cost management remain in the enterprise vision, from the enterprises to seek to lower the cost of internal, external opportunities and challenges will be ignored. If enterprises can joint cost management and strategic management together, it will taking into account the cost of the entire industry value chain, from the internal and external two-pronged approach to the search for ways to reduce costs, create a higher level of strategic cost management. So this will help enterprises enhance its competitive edge, the better to achieve the objective of cost control.The biggest features that strategic cost management different from the traditional cost management is that making cost management at the same time concerning cost competitive position in the market; the purpose of strategic cost management is not only to reduce costs but more importantly is to establish and maintain a long-term competitive advantage; strategic cost management is a multi-dimensional,multi-angle, breaking the boundary of the cost management; strategic cost management can adapt enterprises internal environment and external competition in the market and changes in the environment, It is of great realistic significance.This dissertation introduces the meaning of strategic cost management, the characteristics, the model, analytical tools, and then describes AFG Company profile and cost-management status; and then joints their own characteristics, use the modern management theory analysis AFG Company's cost management. Finally, put the company's strategic cost management application model and how to implement the strategic cost management in AFG Company, how can we ensure the successful implementation of strategic...