Enterprise Strategic Cost Management System Research Based On The Theory Of The Balanced Scorecard

In the face of the rapid development of the integration process of economic globalization, the competition between domestic and foreign enterprises becomes more intense. How do companies will deal with this situation? In the case of a rapidly changing economic environment, it is very necessary to strengthen the development of management science and enhance Management activities to the strategic level. This situation produces the strategic management. Today, the most fundamental competition between enterprises is the competition between enterprise cost. Therefore, in order to gain a competitive advantage, the core problem of the enterprises is the effective cost control. In order to long-term development, the key is to achieve long-term sustainable competitive advantage and to solve the practical problems in terms of cost control. In the past, cost management mainly focuses on highly standardized management in the production process. But for the overall management departments of the enterprise, and the relationship between the stakeholders consider too little, it is unable to adapt to the development of economic globalization. Enterprises urgently need to change this situation. The best way to reverse this situation is to stand in the strategic height, fully aware of the cost of the resources are used to gain competitive advantage, and effective use of strategic cost management, in order to improve the overall level of cost management and long-term sustainable competitive advantage for enterprises. So strategic cost management organically combine the external market and the company’s own internal management, obedience to the needs of the development of strategic management, effectively converts the competition that enterprises are faced in the market to internal stress management.This article use literature research and case analysis, in view of the balanced scorecard theory and enterprise strategic cost management related theory has carried on the system arrangement and comprehensive analysis, using the balanced scorecard theory to build the enterprise strategic cost management system. Strategic cost management theory used in this paper are based on management accounting professor Sanker proposed strategic cost management theory. According this theory, the theory of strategic cost management include strategic value chain analysis, strategic positioning analysis, strategic cost analysis of three basic analysis tool. On the analysis of the construction of strategic cost management based on the balanced scorecard theory, on the basis of the feasibility and rationality of corresponding to the four dimensions of balanced scorecard analysis, so as to set up different targets and indicators. In the end of the paper, we have ZTS cases of enterprise strategic cost management, using the previously established strategic cost management system based on the theory of the balanced scorecard. After inspection and analysis in ZTS enterprise, we put forward some reasonable improvement opinion to achieve value of Enterprise long-term shareholders. This article is helpful to improve enterprise’s emphasis on strategic cost management, and the practice of the implementation of strategic cost management of the enterprise has the certain reference value.