The Application Research On Strategic Cost Management Of The Times Electric Company

Cost is the focus of attention of the enterprise parties and an important factor of enterprise development. The cost size decides enterprise’s profit, so to affect its market competitive and influence stakeholders’ value. It is particularly important to fully reflect the cost information. Basing on the cost drivers and the work core, Strategy cost management is a management method throughout the whole cycle of strategic management process, by fully controlling and improving enterprise’s cost structure and cost behavior, which can provide better cost information for development strategy comparing with traditional cost management. But from our country present stage of this method USES situation, there are still many shortages. This paper studied the problem that should be paid attention in the strategic cost management process of implementing, using case analysis method, so as to providing theoretical and experience support to the reform of the system of enterprise cost management, cost information, and the optimization of long-term competitiveness.Basing on a summarize of academic circles to the strategic cost management on the basis of research achievements, this paper used the Times Electric company’s as the research object, studied the Times Electric company’s cost management current situation in use of strategic cost management. This paper used three analysis tools of strategy cost management that are the value chain analysis, cost drivers analysis, the strategic positioning analysis method, concluded that the Times Electric company can obtain continued cost advantage by optimizing the value chain, controlling key cost drivers, using the cost of the strategy of leading strategic cost management implementation method. To the case study, this paper puts forward relevant policy suggestions. Finally, according to the theoretical analysis and case study results, this paper put forward to take measures to help the effective implementation of the strategic cost management in organization, enterprise culture, human resources, and system, which can provide enterprises with more comprehensive strategic cost information.