Research On Cost Control Strategy Of T Company Based On Value Chain Management

Recently,Micro-small companies have played an important role in our social and economic development.However,there are a great many differences,such as asset size,corporate organization,enterprise management,especially in the aspect of cost management,between Micro companies and large enterprise.These differences will restrict its survival and development of the Micro-small and medium-sized enterprise.Cost control is a series of management activities of cost consumption accounting,prediction making,decision making,budget controlling and analyzing.Cost control is an important managerial title of all enterprises to face to.Cost reflects the stand or fall of a company’s management benefit directly,especially when a company faced an intensively competitive in the same industry.When there are no significant differences in product quality and the quality of service,the cost of control will play an important role in the competitive advantage.Face to the fierce competition,a company need to do a series of steps to reduce costs,improve the quality,and customer value and stabilize their position in the industry by cost controlling.With the economic developing of market environment,the traditional cost control theory and method also need to be constantly developed and optimized.Nowadays,the value chain cost management have been focused on as a powerful analysis tool,an increasing number of enterprises will pay more attention to the study of the value chain cost management for improving the level of modern enterprise cost management.In this paper,I chose T Company as the research object,and discuss T Company’s cost controlling problems and analysis of the causes,according to the perspective of the value chain.Based on the value chain cost control theory research,and combine with T Company’s development overview,state of operation,management status,and other aspects,and I found that main problems of T Company in the cost management aspects were ineffectively corporate culture,over high purchasing and operating cost,absence of Human Recourse management and Financial management.For these issues,I analyzed the causes of main problem and brought forward ameliorative measures by using value chain analysis tools from external and internal of T Company,in order to minimize the overall cost,optimize the allocation of enterprise resources,and improve the management level.