Strategic Cost Management Performance Evaluation Study

With the development of economy in the world, corporations face much fiercer competition than before. The mode of cost management, whose core is strategy, has gradually become the key to corporations to develop and obtain the competitive advantage. With the reformation of the framework, Strategy Cost Management Performance Measurement (SCMPM) has become the measuring tool of the whole procession of cost management. SCMPM is the procession of analysis, evaluation and summarization, which reflect the effective level of enterprises' cost plan and cost control in a certain period. Beside, after the analysis and comparison of the performance of competitors and the situation of the whole market, the system of SCMPM can help corporations to obtain the competitive advantage. In this dissertation, after studying the relative basic theories; I analyze systematically basic meanings and characteristics. Then, from indexes of performance measuring, I study methods of performance measuring step by step and design the basic frame of the system of SCMPM. Furthermore, I cite Southwest Airline, the representative of the strategy of low cost, as the aiming case, analyze it by steps of SCMPM and educe ideas from its enlightening experience. In the last part, I enumerate and analyze some problems from adopting SCMPM in our country, and give some relative methods and actions to settle them.Based on the above-mentioned research logic, this paper consists of three parts. In the first part, I study definitions, characteristics and basic requirements of strategy cost management and SCMPM, and divide steps of SCMPM; then, from of measuring indexes, which is the basic units of performance measurement, I summarize different methods of SCMPM and design the whole system of performance measurement. The system of SCMPM can be divided into four segments, which are Corporation Performance Measurement, Exterior Competitive Environment Measurement, Manager Performance Measurement and Internal Management Performance Measurement.