Research On Strategic Cost Management Of Z Construction Enterprise

Since 2006,the total output value of the construction industry has experienced a rapid growth of more than 20% yearly for 6 consecutive years.Then the growth rate has started to decline.The growth rate in 2015 was only 2.3%.The construction industry is faced with an extensive industrial development mode,an inadequate supervision system,and construction companies being large but not strong enough and other problems.Under the new normal of economy,it is urgent for the construction industry to adjust the industrial structure,change the development mode,and enhance the core competitiveness to meet the severe challenges of development.Under the background of the “Thirteenth Five-Year Plan”,China's urbanization process will continue to accelerate.China will continue to increase the scale of investment in infrastructure construction and advance the construction of social housing,bringing unprecedented opportunities for development in the construction industry.Therefore,in order to improve the out-dated organization styles of the construction companies and enhance the core competitiveness,it is imperative to introduce an innovative cost management model to reduce the overall cost level of enterprises and improve their core competitiveness to meet the opportunities and challenges brought about by the development of the industry.Based on the theory of strategic cost management,this thesis integrates theory and practice,combining with the actual situation of Z construction companies.Firstly it describes the existent issues of the enterprise's current cost management.Secondly it analyzes the strategic orientation of the company and makes it clear.Thirdly it puts forward the scheme of establishing strategic cost management for Z company and measures to ensure the implementation of strategic cost management.Finally come to the conclusion that the implementation of strategic cost management can enable enterprises to increase cost-competitive advantage,achieve the scale benefit and enhance the core competitiveness.From the current view,compared with the cost management level of foreign construction industry,the research and application of advanced cost management methods by China's construction companies are relatively backward.With the continuous opening of the market,the entry of foreign strong construction enterprises will further intensify the market competition.As well as the implementation of national policies such as “ One Belt One Road” will take China's construction companies to go abroad and join the international market competition.Under the requirements of the new environment and situation,how to reduce the cost level and enhance the core competitiveness of building construction companies has become the top priority of the company's development strategy.The introduction of strategic cost management as an advanced cost management method into the daily cost management of construction companies can help companies find problems and change the existing cost management drawbacks,and make the company's cost management more comprehensive,as well as implement the strategy more effectively.