Research On Cost Management Of Iron And Steel Enterprises From The Perspective Of Value Chain

With the continuous development of economic globalization,China's steel industry is facing severe challenges such as high steel costs,slow growth of steel demand,overcapacity of steel,unfavorable position of steel exports,and so on.If the enterprises want to make the products more competitive so that they can turn their losses out of difficulties and create additional benefits,they should do the following two things.For one thing,the enterprise should change the cost management target from the single production cost to the omni-directional cost management based on the value chain.For another thing,the competition of enterprises needs to expand the scope of business not only from the production management of a single enterprise to the entire industry value chain but also from upstream suppliers to downstream vendors.Moreover,each link of synergy can create profits.Nevertheless,most of the existing cost accounting methods and data systems in iron and steel enterprises can not adapt to the current development situation.It is an imperative and effective measure to carry out value chain cost management through value chain analysis and management.It not only improves the level of fine management of internal production costs but also the utilization efficiency of the whole enterprise resources.What's more,it can achieve the cost reduction plan in the enterprise system and increase the overall value of the enterprise.Based on the cost management theory,the value chain management theory and the value chain cost management theory,this paper establishes the value chain cost management framework system of our country's iron and steel enterprises.And based on the cost management case analysis of the value chain,the value chain management theory and the value chain cost management theory,the paper use them to analysis specific results of value chain cost management implementation.The first part of this paper states the background of the topic,the significance of research,the target of research and the structure of research.The second part expounds the theoretical basis of cost management based on value chain.The third part says the current situation of iron and steel industry in China and cost management of iron and steel enterprises in China.Part 4 describes the construction of cost management system based on value chain in China's iron and steel enterprises.Part 5 is the case study of AG Iron and Steel Company.It shows the cost management analysis based on the internal and external value chain in AG Iron and Steel Company.In the end,the improvement and enlightenment of cost management based on value chain in AG Iron and Steel Company are expounded.Part 6 indicates the conclusions of this paper and the problems to be further studied.The main conclusion of this paper are two points.Firstly,the traditional cost management cannot adapt to the unpredictable economic environment.In order to have competitive advantage and create profits,enterprises should change the cost management mode.Therefore,the value chain cost management is imperative.Secondly,through the analysis of cases,fllowing the value chain cost management,iron and steel enterprises can really achieve the cost reduction plan of the enterprise system and help the loss-making iron and steel enterprises get rid of difficulties and realize the maximization of the enterprise value.It shows that the value chain cost management is feasible in the iron and steel enterprises of our country.