The Study On Cost Control Optimization Of J Construction Company Based On Value Chain Theory

With the acceleration of globalization and the rapid development of digital information,capital transactions are becoming increasingly frequent all over the world,while the competitions between enterprises are heating.Therefore,more and more enterprises spare no efforts in cost control to survive in the fierce market competition.In the past,enterprisesused to focus merely in the production cost of the product itself,and the cost control process was limited to the manufacturing cost only.Cost was the sole factor to consider during the whole controlling process.However,with the development of modern enterprises,the traditional cost control methods can hardly adapt to changes and improvements of the time.The cost control based on value chain theory is inherited and developed on the basis of traditional cost controltheory,as a evolutionary solution in cost control to serve the contemporary.The value chain cost control theory ranges from local segments to the entire value chain.It not only focuseson the internal value chain,but also emphasizes the external one as well.By integrating value chain activities,the cost control based on value chain theory actively encourages the coordination between internal enterprise resources and the external environment.Therefore,the theory of value chain cost control aims innot just cost reduction,but more in the increment of value,and the optimization of the entire system;the scope of cost management includes the production process,as well asevery segment of the productionprocess from design,procurement,production,sales and customer service.This paper mainly uses the method of case study,using J construction company as the subject.First of all,the paper reviews the background of the value chain cost control.Opinions from domestic and foreign experts and scholars over the years of are gathered and the paper discusses the results of systematic collation and analysis of valuechaincost control theory.Then the paper studies the cost control of the case company,finds out the shortcomings and brings out the necessity of introducing the value chain theory in enterprise cost control.The discussion section examines the characteristics of the industry,the actual conditions of enterprises and a detailed analysis of the internal and external value chain.An optimized plan of cost control for J construction company follows the review,aiming to help J companyreach the optimizationof the whole value chain,and create core competitiveness.Finally,a conclusion is drawn combined with case analysis,and exploration of value chain theory in the application of cost control.Moreover,this paper also hopes to provide new ideas and inspireother construction enterprise in cost control.