An Applied Study On Strategic Cost Management Based On Chinese Thermal-electric Power Manufacturers

The Thermal-electric Power Plant, which is greatly concerned about energy-saving and environmental protection, is able to supply heating and electrical powers of high quality. Due to the continuous rise of fuel prices and reformation of electrical power system, the decline of performance of enterprises has affected the stability of the development of the electrical power industry. In order to improve the competence of thermal-electric power industry, the inefficient management should be made changes to. This paper tries to combine the western ripe theory of strategic cost management with Chinese thermal-electric power manufacturers to make applied study, the author wishes it will contribute to sustainable development and attaining competitive advantage for Chinese thermal-electric power manufacturers.First, the author contrasts several relative approaches of cost management, and choose Shank's model as researching foundation. Second, the author makes investigation of the strategic cost management driver of thermal-electric power manufacturers, mainly amaryllises the limitations of current cost management and the urgency of strategic cost management. Third, the author analyzes strategic cost management about Chinese thermal-electric power manufacturers, by ways of value chain analysis, strategic orientation analysis, and cost driver analysis, the author discusses such problems as weakness of internal value chain and industrial value chain of Chinese thermal-electric power manufacturers, advantage of competitor's value chain, how to choose strategic orientation about different corporation, structural cost driver and exceptional cost driver of thermal-electric power manufacturers, and the author discusses the probability of practicing strategic cost management for Chinese thermal-electric power manufacturers by case analysis. Finally, the author makes some suggestions of strategic cost management for Chinese thermal-electric power manufacturers, and supplies a series of ways about reducing cost with different value in detail.