Study On Strategy Cost Management Of State-owned Engineering Company G

As the reform of economic system is launched deeply and vertically, domestic construction markets are increasingly open with competition being fiercer. On one hand, state-owned construction companies are restrained by system and cannot change their traditional management modes and frames; on the other hand, traditional management modes and frames cannot accommodate the current fierce competition, resulting in the situation that they are faced with high costs, reduced profits, and increased difficulties in management.Based on traditional management mode of stated-owned G company and domestic markets, this paper makes a deep analysis of external and internal competition changes and its main competitors. Its purpose is to find out bottleneck problems that affects G company's strategy position on long-term development and cost management. Besides, it introduces thoughts and theories of strategic cost management.This paper also analyzes and studies the strategic position, value chain, and cost drivers through the combination of research framework and company practice on strategic cost management. It then finds out the current solutions to strategic position and cost management in order to lower company management cost effectively and to realize reasonable profits. Thus, the company can maintain its long-term competition advantages and can promote sustainable development.