A Company's Strategic Cost Management Case Study

Costs control as an important part of the impact of corporate profits,has beenrealized by more and more managers,the situation that the profit margins are gradually squeezed is inevitable,in this case,want to maintain the development and expansion of enterprises and chase profit,we must start from the low cost,whether the cost can get good control has become the fundamental decision to survive the enterprise.Most of the enterprises in China still take the traditional cost management methods,the traditional cost management focuscut costs within the enterprise and mostly concentrated in the after-control.Nowadays,itcan not createmore profits for enterprises anymore.Coupled with the function of competing products between enterprises,the characteristics of convergence,continue to be limited to reduce costs within the enterprise,will undoubtedly ignore the opportunities brought about by many external environments.Therefore,it is a good idea to rethink the problem of enterprise cost management from the perspective of the strategic level.The strategic cost management can link the cost of the business and the value chain,and combine the internal and external environment to explore ways of reduce costs.As for the key parts of the production technology limitations,making China's bus manufacturing productionindustrydifferent from other countries:isassembly industryrather than the manufacturing industry.In the background of country on the economic regulation and control efforts continue to strengthen,the purchase of raw materials and technology,the introduction of the cost of talent to make the cost of bus manufacturers to further increase the cost of the bus industry has been fully into the high cost era.The "thirteen five" reform,"along the way",the new energy vehicle market explosion expansion for the bus industry market development has brought great opportunities,A company is China's automobile manufacturing industry comprehensive strength of the strong enterprise First,the selection of a company as a representative of the bus industry to study,can reflect the cost of China's bus manufacturing cost management and the problem,this paper through the strategic cost management case study to China's bus industry cost management some thinking and inspiration.Based on the theory of strategic cost management,this paper discusses the background and cost of a company,and advocates that it should improve the original cost management structure and apply the strategic cost management model.Based on the connotation,characteristics and content of strategic cost management,this paper applies the three analysis tools of value chain,strategic positioning and cost driver to the actual situation of the company,and makes a detailed study on this basis,it summarizes how the company should implement the strategy cost management in three aspects in order to promote the rapid development of company's cost management.