A Case Study Of Haier Group's Strategic Cost Management

With the development of Chinese manufacturing industry,China has been a global big country in manufacturing now,but the overall level of China's manufacturing sector still lags behind the developed countries,and it is still a long way to go if China want be the world's manufacturing powerhouse.With the gradual loss of cost advantage,the model of traditional cost management increasingly difficult to meet the changing market demand,in order to survive in the fierce market competition,it is necessary to use a new cost management to deal with However,while implementing of strategic cost management also need to consider the business process,because any cost management will have an impact on the implementation of business processes,therefore,the implementation of strategic cost management based on business process reengineering is critical to the enterprise.Haier as the representative of Chinese household electrical appliance enterprises have a decisive influence on the trend of the global home appliance industry,Haier white goods become the world's first white goods brand,its success provide a new transition path to Chinese manufacturing enterprises whose pursuit of low-cost in the blind,also provides a guideline for the Chinese manufacturing companies to explore how to catch up with foreign companies and the formation of international competitiveness.This paper starting from the theory of strategic cost management and business process reengineering,analysis of the main elements of both in details,and then addressed the interaction between strategic cost management and business process reengineering specifically,and analyzes the related theory.Through the study of the theory of strategic cost management based on business process reengineering,it is think that the enterprise cost management must conform to the trend of social development.Draw attention to the importance of business process reengineering in the implementation of the strategic cost management,so as to minimize costs.Through the analysis of cases of Haier Group,this article is applied strategic cost management theory and business process reengineering theory to specific cases---the Haier Group.It discusses its basic overview of the situation and introduced the backgrounds.Analyzed on how to rely on business process reengineering to achieve strategic cost management in the continuing reform and development specifically.First,analysis of specific practices in the implementation of the enterprise cost strategic based on BPR,just like the specific steps companies penetrate BPR into the strategic cost management.Secondly,through the implementation of strategic cost management based on BPR,Enterprises are achieved some success in the core competitiveness in three areas: cost management and cost dynamic coupling strategy and corporate strategy.the cost of business optimization is reflected in three aspects: its optimized organizational structure change as the core optimize the organizational costs,to the "third-rate integration" model as the core business transaction costs as well as in order to optimize logistics costs as the core business.These three aspects,centered on organizational transformation to optimize organization cost,centered on "Three flow integration" model to optimize business transaction costs and centered on order to optimization of logistics cost.All of above are permeate business process reengineering philosophy to the whole process of cost management,maintain the dynamic coupling with the cost management and the business development,so that cost strategy should provide services to the enterprises for its transformation and upgrading.Finally,based on the analysis of strategic cost management of Haier based on BPR,there gets some conclusions that to explore momentum and reason of enterprises to achieve high growth on the level of strategic cost,is the development direction of Chinese manufacturing enterprise to obtain core competitiveness.