Strategic Cost Management Research Based On The Value Chain

With the development of technology and appearance of new industry, operational circumstance and competition model that enterprises face have changed greatly. External change provides higher demand to corporation cost control and management, compels that to construct good internal circumstance which is propitious to the cost continuance reduce, depending on market requirement and management situation and in direction of market competition price and in term of long-range benefit. In view of above, traditional cost method already can't adapt the request of corporations, thus Strategic Cost Management is an integrated management approach. In 1980's, SCM was brought forward, at present SCM is accepted not only in theory but also in practice in the west. But the theory is just being introduced and tested in some enterprises in China.It is important for enterprises to research and apply SCM, on the base of the value chain. We pay the emphases on internal and external value chain by the way of the new frame built in the article. That system combines value activity and cost management and finds the ways to solve the matter from the deep cause, on the base of basic enterprise's activity. The value chain accounting includes all items: product R&D, produce, sale, after service. It expands the scope of cost management, which doesn't be limited in production procession. This article analyzes portrait value chain, landscape orientation value chain and internal value chain of enterprise, through constructing SCM system based on value chain, thus it can provides useful quantitative and non- quantitative message for strategic decision.The situation of every tache value-added is analyzed in the article through SCM system, It also is significant to analyze portrait value chain, landscape orientation value chain and interior value chain to provide decision for enterprise Strategy.