Strategic Cost Management And Analysis Methods

The environment of today's corporations has changed greatly. For surviving in the severe competition, corporations will pay much attention to strategic management and cultivating core competition ability. Core competition ability comes from competitive advantage, and according to Porter's theory, competitive advantage comes from cost advantage. Thus, in order to survive and develop, the corporations must strengthen their cost management. In this thesis, based on the point of view of system engineering we analyze the strategic cost management comprehensively. The main works are as follows:1. The background of strategic cost management is summarized and the content, importance of strategical cost management are analyzed.2. The strategic cost management is classified into two types. In the first type the activity-based costing is introduced into strategic cost management and in the other type, the activity is upgraded to strategic level. In addition, the value-chain method, SWOT method, cost-drive method and benchmark method are studied.3. The technical support system and implementation of strategic cost management is discussed comprehensively.4. On the basis of above theory and methods, a real case is analyzed in detail and some suggestions are put forward.