Hongsheng Textile Enterprise Strategic Cost Management Application Research

Cost mana geme nt mode has been “the bottle’s neck” that puzzled the Hongshe ngtextile Company, the defects of the traditiona l ma nage ment make it ve ry d iffic ult forthe enterprise to adapt to the imp le mentation o f strategic mana geme nt, If textileCompany want to enhance comprehens ive competitiveness, it must cha nge its carelessmeans of cost mana geme nt. One of the most effic ie nt ways to this s ituation forenterprise is to adopt the strategic cost manage me nt. Strategic cost manage me nt is acomprehe ns ive cost mana ge ment, whic h based on the strategic concept to analys is theindustry market, enterprise and competition of financ ia l and non-financ ia linformatio n. The strategic cost manage me nt mode can provide the full range ofdyna mic cost information for the productio n and operation manage me nt, thusenterprises can effective ly and continuo usly adapt to the changes in the competitionenvironme nt, ma inta in long-term competitive advanta ge.This paper focus on the current strategic cost ma nage ment theory, analys is theHongs heng textile enterprise cost mana ge ment current situation, find out the existingproble ms, then po int out the limitations o f current cost ma nage ment a nd the necessityof us ing strategic cost mana geme nt. Applying strategic cost ma nage ment theory intoHongs heng textile enterprises, conc lude that the enterprise should choose theintegrated competitio n strategy, optimize mana geme nt of the interna l and externa lvalue cha in, contro l cost factors driving. Comb inatio n with the Hongs heng textileenterprise cases, finds the methods and means of the enterprise imp leme ntation ofstrategic cost manage me nt theory, and I hope it can he lp Hongs heng textileenterprises improve cost manage me nt mode and thus obtain co mpetitive advantage.