Strategic Cost Management Of Liaoning Province Post And Telecommunication Engineering Bureau

Strategic cost management can enable enterprises to stand on the strategic height, combine cost management and strategic management,integrate corporate cost management into the value chains of the entire trade, seek ways to lower costs from both inside and outside of the enterprise, and form higher-level strategic cost management. Strategic cost management can help enterprises win sustainable advantages in competition, get outstanding operation achievements, and attain the dual purposes of sharpening corporate core competitive edges and controlling costs. So it is of great realistic significance to research on and implement strategic cost management.The paper focuses on the applications of strategic cost management in Liaoning Province Post and Telecommunication Engineering Bureau. First of all, it makes analyses of the cost management status quo of the Liaoning Province Post and Telecommunication Engineering Bureau and identifies such problems as the lack of strategic cost motives, narrow scope of cost management, too much emphasis on economic profit goals, imperfection of cost management systems, etc. In order to have long-term development, foster and sharpen corporate core competitive edges, an enterprise must redouble its efforts to solve the above-mentioned cost management problems. In light of the existing malpractices of the traditional cost management, it should adopt theories and approaches of strategic cost management, use the three analytical instruments of strategic cost management to analyze and identify major problems of the company in an overall and systematic manner.The paper recognizes the value-addition operations and non-value-addition operations along the corporate value chains, as well as the enterprise's position along the trade value chains, and probes into the possibilities of further lowering costs by making use of the upper-reach and lower-reach of the value chains. Through cost motive analyses, the paper discovers that the cost motives that have rather big impacts on the corporate costs are basic economic structures and operation procedures, so it pays strategic attention to the structure cost motives that have rather in-depth impacts on corporate costs and the implementing cost motives. Through analyses of strategic positioning and analyses of the internal and external environment with which the enterprise is encountered, the paper identifies the enterprise's advantages, disadvantages, opportunities and threats, clarifies the enterprise's position in the trade, in market and in product supply.The paper suggests raising value-addition operation efficiency and vigorous elimination of non-value-addition operation, etc. to restructure the internal value chains, and it proposes reconstruction of Liaoning Province Post and Telecommunication Engineering Bureau's value chains through such methods as restructuring business operation flows,restructuring organizations, establishment of information systems, strategic partnerships, outsourcing strategies, etc. Only through structure cost motives like controlling scale economy, integrating degrees, technicality, etc., and through implementing cost motives like productivity application models, overall quality control, staff dedication to the enterprise, etc., can Liaoning Province Post and Telecommunication Engineering Bureau really control costs to guarantee the attainment of strategic cost management goals. By appraisals of three competition strategies, the enterprise selects and positions the enterprise's competition strategy as cost-priority strategy. It regards cost, quality and service as the key factors for the enterprise to win sustainable competition advantages and raises there to the corporate strategic level for the purpose of planning.The analyses of the Liaoning Province Post and Telecommunication Engineering Bureau's strategic cost management have clearly identified the cost-priority strategy as the competition strategy. During implementing strategic cost management, Liaoning Province Post and Telecommunication Engineering Bureau, taking account of its features and adopting the multi-factor analysis methods, should be engaged in value chain restructure to transform its cost structures to lower costs. It should adopt objective cost management and constantly improve its cost situations. It should control cost motives to ensure sustainable cost advantages. It should resolve the bottleneck problem of "high costs and fees but low profiting capacity", which has been bothering the enterprise all the time, realize the core strategic goal of "cost competition advantage and scale benefits, to further raise corporate core competitiveness and form the company's sustainable cost competition advantages.