Resear Ch On Cost Management Of S Company Based On Value Chain

At present,there is an economic downturn while the raise of raw material's price and cost of labor and the government makes stricter requirements for environment safety.All these factors bring severe challenges to the printing market.In order to cope with the competition and challenges of the flexible market,the issue is getting sharper that the printing enterprises simply rely on traditional methods of making inner management to reduce the cost so as to persist a sustainable long-term competitive advantage.Though some of them try to bring in advanced production equipment,production lines and promote skills to enhance productivity,they will have to pay more for indirect fees such as maintenance,depreciation,and the boot fee.Value chain analysis is an effective analysis tool of strategic cost management.It can help to make a comprehensive arrangement to enlarge the scale of cost management beyond the organization so that would help the enterprises to obtain lasting advantages in competitions so as to make sustainable development.Under the research background mentioned above,this study takes a big printing company as a research object,uses the SHANK theory as a main analysis tool to do the exploration and research of strategic cost management based on value chain under the development background and the macroscopical orientation of printing industry.This study firstly expresses the macro external environment that the company lay,analyses the current situation of the company's development,and points out cost management related problems the company faced.Secondly,the study uses Porter five forces model to analyse the external value chain of the company in order to clarify the it's market position,advantages and disadvantages.It uses the cost drivers to analyse the value-added activities and non-value-added activities of the whole internal value chain in order to find the deficiencies in the company's strategic cost management.Last but not least,this study raises strategies for further improvement of cost management and supporting measures of implement according to the value chain strategic cost management theory.This study aims to find out the methods of improving the management level of the company by making analysis of the cost management actualities and problems in printing industry and using the rational of value chain based strategic cost management.The study is also expected to bring new thinking and inspiration to the cost management in the printing industry.