S Company Strategic Cost Management Based On Cost Analysis

Market likes the battlefield, so the business management highly relies on the strategy. Today, with the fierce global economic competition, the development of business strategy management covered all the levels of business management, which has the special instructive significance on cost management. Strategic management and cost management combined each other to compose the business strategic cost management. Firstly, it matches the requirements of business strategic management. On the other hand, it makes correction of the traditional business cost management system. From strategic point of view, they are a series of management activities which combined by the daily business management target and the business long-term strategy. The thesis is focused on the topics such as:improving the core competitive ability, developing multiple operation directions, business process rebuilding and optimization of corporate governance structure. How to use the main analysis tool of strategic cost management—strategic cost driver analysis to study the driving factors affecting the cost management and get summary, then dig out the cost management focus to improve it, are the main content of strategic cost management.Under the background of machinery and equipments industry on unconventional oil and gas fields, the author studied the whole process of strategic cost driver analysis using in S company from the aspects of structural and executive cost drivers. The cost management activities based on the strategic cost driver analysis were evaluated, and the correction plans are given according to problems and deficiencies in cost management. Also the improvement suggestions on setting up the multiple scale management frameworks of strategic cost driver analysis are raised.The cost management tools include not only the strategy cost management tools but also others. Due to the limitation on timing and understanding, the author can not combine all the tools with strategic cost driver analysis and make them match each other. In addition, the application and research of strategic cost driver analysis can be developed on the fields of cost management. Overall, the study on strengthening business strategy cost management by using strategic cost driver analysis gives some tips on the management research, has certain referential significance.