Research On SL Pesticide Corporation Cost Management Based On Value Chain

In recent years, the global economy is in a state of high speed, the development of the information is becoming more and more quickly, increasingly rising of the materials and labor cost, directly led to a substantial increase in the cost of the enterprise, the enterprise management environment and management mode has also changed dramatically. Cost management is always the theme of enterprise production and management, it throughout every process in the enterprise to create value, therefore, the cost control is of great significance for the enterprise’s rise and fall. For pesticide industry, from an international point of view, the six giants occupy monopoly position, from the domestic point of view, due to the development of agriculture and the support of rural policy, the domestic pesticide industry is developing rapidly, and gradually formed a set of relatively complete industrial system of pesticide industry. On the whole, appear crowded melee situation of pesticide industry, competition has become very fierce. The traditional cost control has been unable to meet the demand of modern enterprise decision-making information, enterprises must explore a new mode of cost management to reduce the cost of production and operation of enterprises, in order to obtain the cost advantage, and improve the economic benefit, and finally achieve the strategic goal of the enterprise. As an important analysis method and the key link of strategic cost management, the value chain analysis provides a new thought and method with cost control for the enterprises. Enterprises should studies the cost comprehensively by using value chain, and exploit the cost potential, and explore the methods of cost control, to help enterprises with its cost management in-depth, to lay the foundation for the management decision.The main research content of this paper consists of six parts, Part one introduces framework structure of the article, the research background and significance, and summarizes the research achievements of scholars both at the domestic and foreign, and points out the innovation and the shortcomings of the article at the same time. Part two defines the concept of value chain and cost management, introduces the composition of the value chain briefly, focuses on the value chain analysis which includes the analysis of internal and external value chain at the same time, and discusses the link between the value chain and cost management in the end. Part three analyzes from the current situation of SL corporation and the pesticide industry, discusses its cost structure and the current situation of cost control, and points out the problems existing in the cost management. Part four analyzes from the internal value chain, industry value chain and rival value chain, and explores its cost drivers aiming at the existing problems of SL corporation. Part five puts forward some suggestions for the existing problems of SL corporation. Part six summarizes the research process and the conclusions in this paper, and prospects the future research.The characteristics and innovation of this paper is that the value chain management theory used in the cost control of pesticide enterprises, linking theory with practice, integration of resources to achieve the value of the entire value-added activities with combining the characteristics of pesticide enterprise. Through the case analysis, reach the feasibility and importance of the value chain for cost management. By using a series of method, analyzes value chain and cost driver of SL corporation in detail, pays attention to the influence of the external environment, and puts forward some suggestions for improvement, and tries to make the value-added of the entire value chain becomes possible.