The Study Of Lowering The Cost Of Coal Enterprise Under The Background Of Supply-side Structural Reform

Coal industry is the pillar industry of our country which is Closely associated with China's energy supply.But the coal market has performed worse since 2012,coal industries have high cost and face a serious situation,which limits the development of their own.We are now in the "Much starker choices-and graver consequences-in" period and chairman Xi put forward the Supply-side structural reform which listed coal industry the key point to be reformed.GM is a coal enterprises with small-medium-size in the area of Zhangjiakou,Hebei province,which cost composition is relatively simple compared with large-scale coal enterprise,and is not listed so far.In addition,its financing costs is mainly embodied in bank loans,so it is more convenient for the author to research.Although GM is not as good as large-scaled enterprise,we can see both cost properties of general small and medium-sized coal enterprises and its own styles.According to the research,the enterprise's net profit has been negative from 2014 to 2016.So how to lower the costs has been a major problem to all of the decision makers.In this paper,I emphatically analyzed the "cost reduction" which is a major task of the supply side in the structural reform and taking the cost fluctuation of GM coal enterprise from 2014 to 2016 as a case study,make a research on the Coal enterprises reducing their costs under the background of the supply side.First,my essay provides detailed information on the background and significance of the Supply-side structural reform and the main contents of Cost reduction in this paper,including a brief description about the prime cost.With reference to the traditional methods on Enterprise cost reduction such as the Homework cost method and so on,and in combination with the new background of the supply side,I put forward the enterprise cost reduction methods under the new situation.Next,I analyze two aspects of internal and external costs with taking the GM coal enterprise for instance.According to the research,labor cost and material cost take up the biggest share in the enterprise internal cost,which results from X industry properties of coal enterprises and their own limitations.Meanwhile,the cost of financing,security costs,etc are also important parts of the enterprise cost;Paying the taxes and dues to the financinginstitutions and government is the important component in the external costs.Then,I analyzes the characteristics of the enterprise cost and draw conclusions that the X coal enterprise has both high safety cost and high labor cost,which shares a positive correlation with the coal production.I also analyze the reasons of the high enterprise cost from two aspects of inner-enterprise and external-enterprise.Outside the company,the CPI pose lead to the high labor cost,financing cost and tax cost;In the company,I found that some self-reasons result in the high enterprise costs such as the low quality workers and the small scale of firms.Based on the analysis on GM,I took all the small firms into consideration.What methods should be taken by governments and enterprises to lower the costs under the background of the Supply-side structural reform? I has put forward some feasible methods to lower the high costs in this paper.At the government level,the government should start on the supply side of the reform,adjust the tax and monetary policy,take advantage of the convenience of "Internet +",be better to delegate,fundamentally improve the coal enterprise labor productivity;At the enterprise level,we should establish and improve the examination system and investigate market supply and demand reasonably and improve the comprehensive strength to reduce the extra cost,controlling cost loss in the most appropriate way.Based on the new background of supply side structural reform policy,the paper research on the problems of coal enterprise to reduce the cost.on the basis of predecessors' research,I summarizes the new situation to reduce the cost of coal enterprises.First,now the coal enterprise should be guided by long-term coal market supply and demand in the process of cost reduction and combined with the target cost method and other advanced cost management method,constantly adjust cost in economic activities,cost reduction,Second,we should cooperate with the government's latest policies actively and pay close attention to government action,looking for cost reduction methods in the enterprise internal and external.By researching on the problems of GM to reduce cost under the background of the supply side,the article aimed at providing some practical advice to related field to cut down their costs,providing a reference to our government to to formulate policies on Supply-sideand contributing my own efforts to the smooth implementation of Supply-side structural reform.