Cost Control Study Of J Company Based On Optimization Of Value Chain

With the improvement of residents' living standards and driven by high-end consumption,China's liquor industry ushered in a golden decade from 2003 to 2012.After a rapid development of more than one decade,the liquor industry encountered double barriers of the policy and the product quality at the end of 2012.The seemingly prosperous liquor industry seems to lose the internal and external power to continue to prosper.With the coming of the adjustment period of the industry,a reshuffle of the industry is inevitable.As the whole industry enters a period of deep adjustment and the restriction of high-end consumption,major brands of liquor are fighting for the market share of low-end liquor,which is the main field of J company's products.Since 2013,J company's sales performance has declined consecutively for five years,both in revenue and profit falling.The adverse conditions includes the constant declining of operating revenue,the increasing of operating costs yearly and the further squeezing of profit.Therefore,it is necessary to control costs.From the perspective of value chain,cost control has changed the narrow understanding that traditional cost control only focuses on the cost saving.It requires enterprises to extend cost control to the four-dimensional space:from the strategic level of enterprises,down to the operational units of enterprises,outward expansion to suppliers,customers and competitors,and inward expansion to product design and research and development.Therefore,the study of enterprise cost control from the perspective of value chain is more comprehensive,systematic,which is practically significant to reverse the current adverse situation.This paper is divided into six parts.In the first part,the research background and significance are firstly proposed.It sorts out the research of domestic and foreign scholars on value chain theory and value chain cost control theory.The second part elaborates on the related concepts and theoretical basis of value chain theory and cost control theory.The third part introduces the basic situation of J company first,then elaborates on the current situation of cost control from the four links of research and development,procurement,production and sales,and analyzes the existing problems of cost control.The fourth part puts forward optimization suggestions from the internal value chain,industry value chain and competitor value chain according to the existing problems of J company's cost control.The fifth part proposes four safegu,ard measures for value chain cost control from four aspects:organization,incentive,supervision and culture.The last part summarizes this paper and points out the shortcomings of this paper,and the future development of value chain cost control prospects.