Hunan Nonghua Means Of Production Company Strategic Cost Management Research

At present, the government is carrying out the reform of the fertilizer circulation system, which will change the subsidy policy and price limitation and achieve the complete marketability. At the same time, according to China's pledge for the entry into WTO, the fertilizer wholesale industry will be opened to the foreign capital at the end of this year. Facing the change of environment, Hunan Nonghua Means of Production Company that plays a leading position in the fertilizer industry needs to improve competence urgently from the strategic point of view.The thesis firstly introduces the theory of strategic cost management including the background, the development course, the basic thought and the characteristics. Next, according to the changing external environment faced and the limitation in cost management performed by Hunan Nonghua Means of Production Company, the thesis proposes the key points of implementing strategic cost management and its practical significance.Based on the analysis of macroscopic environment, the situation and structure of whole fertilizer industry, as well as the interior resources of Hunan Nonghua Means of Production Company, PEST and SWOT analysis methods are adopted to place the strategy for the company, that is, to develop into a big comprehensive agricultural material wholesale company. At the overall strategy and the perspectives of strategic value chain, Hunan Nonghua Means of Production Company carries out a reconstruction in three aspects of internal strategic value chain, the industrial strategic value chain and the competitor's strategic value chain. From the point of view of strategic cost drivers, Hunan Nonghua Means of Production Company will gain the long-lasting competitive advantages through controlling cost drivers and the work management.Strategic cost management is to take a thought about strategy from the perspective of cost and provide information service for strategic management. Under the background of fertilizer circulation system's being open, the thesis mainly discusses that how Hunan Nonghua Means of Production Company implements the strategic cost management and enhances the competence and the benefits from the three aspects of value chain, strategic localization and cost drivers.