Research On Application Of Strategic Cost Management Based On Value Chain In T Rubber Company

With continuous improvement of Chinese market economy,the competitiveness between enterprises has become fierce increasingly.For Chinese small and medium enterprises,they pay more attention to the cost of production processes.The traditional cost management mode can not satisfy the need of long-term for reducing the cost to expand sales to achieve the purpose of profit of enterprises.So it is more important for small and medium-sized enterprises to improve the traditional cost management mode.If the enterprises want to hold his ground and gain competitive advantage in the fierce market competition,according to the overall situation,they must improve the mode of cost management in the long term.Therefore,the enterprise should be in control of the cost from the point of view of value chain,we should analyze and perfect the weak links in the enterprise chain,and introduce appropriate cost management methods to control the cost in the light of the enterprise's own situation.To ensure that cost management can be consistent with the company's development strategy,so as to form an overall advantage and achieve long-term development.This paper uses the method of combining literature research and case study at home and abroad and summarizes the value chain,strategic cost management,the related concepts of target cost management and activity-based cost management,the characteristics.Secondly,it analyses the use of strategic cost management tools,the internal and external value chain as well as strategic cost management,strategic positioning.Based on value chain analysis of T rubber company strategic cost management,through the analysis of the current situation of the cost management of T rubber company,the company pointed out that the cost management method is backward,indirect cost allocation is not scientific,and the lack of long-term,the fundamental reason lies in the lack of strategic thinking,then.This paper constructs a strategic cost management system suitable for T rubber company: perfect the internal value chain and industry value chain,strengthen the cost control of each link,strengthen the strategic cooperation relationship with the upstream and downstream suppliers and customers;The strategic orientation suitable for the development of the company,namely,the cost leading strategy,the improvement of the cost management method,the introduction of the target cost method to control the product cost and the distribution of the manufacturing cost by the activity-based costing method,are defined to ensure that the cost collection is more accurate and standardized.This paper draws the following conclusions through the research of T rubber company: It can help T rubber company to define the direction of strategic development and perfect the cost management mode of enterprises by constructing strategic cost management system basing on value chain,and target cost method to face the market.It is suitable to be applied and popularized in the manufacturing industry of small and medium-sized enterprises with the characteristics of cost driven by the overall situation,and Activity-based costing can more scientifically and reasonably distribute the manufacturing costs and provide more accurate information for the cost management of enterprises.Strategic cost management is a continuous and dynamic process.In the process of implementation,advanced management methods and means such as performance appraisal system and information management system should be attached to promote the war.The direction and effectiveness of cost management.