The Study Of ZD Real Estate Company Cost Management Based On Value Chain Analysis

Abstract:As the socialist market economy with Chinese characteristics continues to mature and develop, the competition between real estate development enterprises become increasingly fierce, strengthening cost management has increasingly attracted the attention of the authorities. Almost all of the real estate development enterprises will regard cost control as their management object, it is because the enterprise development cost will directly affect the quality of business performance.As a real estate development company of private small and medium enterprises in the third-tier cities, ZD real estate development company was faced with intense competition of large local state-owned enterprises as well as the influx of foreign capital predators, and the new changes of customer demand for investment as well as the need of residence, the traditional cost management methods have shown a lot of limitations in cost accounting, cost control and exposing the problems of existing cost management. Value chain as an advanced strategic management analysis tool in the field of enterprise cost management also plays an increasingly important role in many famous enterprises management practice and achieved good results, such as Ford, Handan Iron&Steel, and so on.In view of the practical need, this paper attempts to use the theory of value chain to analysis the value chain of ZD company, the cost structure and the value of the value creation activities between the internal and external relations, in order to help enterprises to optimize the resources, and devoted that to the relative key strategic, so as to gain a competitive advantage. This paper made some review on the relevant theory of value chain and value chain cost management, and then analyzed the ZD company existing in current cost management problems, put forward the theory of value chain cost management as the analysis tool, stressing analyzed the cost driver of ZD company in practical management which based on the theory. At the same time, this paper took ZD company as an example to do a comprehensive analyze and discussion on internal value chain, industry value chain, the competitor value chain of ZD company, and on this basis, discussed ZD company cost management optimization strategies and measures to ensure the implementation of value chain cost management, and finally predicted the effect of ZD company implement with using the value chain cost management.This article develop the full cost control management for the ZD real estate company which is in the rapid development of the crisis-ridden, providing theoretical guidance and decision to the optimized cost management program. This study also provide a reference to the small and medium real estate development enterprises of three or four lines in implementing full cost control value chain.