On Strategic Cost Management And Its Application In Chinese Enterprises

This article takes the change of cost management environment as the logistic beginning of our research. It connects strategic management theory with cost management theory and puts the former as the basis. It analyzes the change in competitive environment and the strategic requirement to cost management. This article uses both theory analysis and case study. Based on the systematic reorganization of the theory about strategic cost management(SCM) at home and abroad, it takes Baogang as an example to analyze the application situation of SCM in Chinese Enterprises. There are four parts in this article.Chapter one firstly introduces the study background and meaning of this article, and then it summarizes the related articles about SCM at home and abroad. These articles study the theoretical basis and application practice of SCM from different aspects and provide abundant references for this article. At last, it introduces the research method, structure and viewpoints in this article.Chapter two can be divided into three parts. It firstly combs the related concepts about SCM, and then discusses the three analysis tools of SCM——strategic orientation analysis, value chain analysis and cost driver analysis in detail. At last based on the discuss about analysis tools, it increases a method of SCM, that is activity based management(ABM).Chapter three mainly discusses the application of SCM in Baogang and summarizes the experience in practice.Chapter four discusses the feasibility of applying SCM in Chinese Enterprises, especially companies having lots of procedure and large quantities. It discusses the problems and related solutions when applying SCM in China.In the last part, it summarizes the study results and also points out the shortcomings in this article.