Research On The Optimization Of Strategic Cost Management Of Xinbo Company

Nowadays,the competition in the domestic market and the international market becomes more and more intense due to the ever-changing business environment of modern enterprises.The enterprise’s competitiveness depends on the competitiveness of its product cost or service cost.The key point is whether the enterprise can achieve a sustainable cost advantage.Traditional cost management faces multiple shocks because the new economic environment is rapidly changing.Firstly,traditional cost management focuses on reducing internal production costs,especially for lower production line workers and improve labor productivity is relatively sensitive,but does not take the external value chains into account;Secondly,traditional cost management tends to ignore the cause of strategic cost,often unable to identify the root cause of the cost,which leads to information distortion of cost;Lastly,traditional cost management tends to reduce costs to achieve short-term economic benefits,but strategic goals are often ignored.Therefore,traditional cost management urgently needs to be transformed,and strategic cost management is developed.,Strategic cost management combines the ideological essence of strategic management based on cost management.From the perspective of strategic management,the goal of cost management function expansion has been completed.Enterprises must find a way to organize cost management effectively under different strategies.Seeking sustainable competitive advantage is the key to enterprise strategic cost management,and Enterprise competitive advantage is a key to strategic management.The value proposition of an enterprise should create value for customers,and it needs to completely cover the cost and resources invested by the enterprise.Moreover,realizing the strategic goal of the enterprise is the prerequisite for strategic cost management.This paper takes Xinbo Corporation as the case and discusses the related strategic cost management materials.It combines theoretical research with case analysis and adopts the theoretical model proposed by John K.Shank who is an American management accounting professor.A strategic perspective is provided and the strategic positioning of the company is analyzed.This paper also pays close attention to the driving factors of strategic costs and uses the value chain analysis tool to conduct a comprehensive analysis of the current situation and existing problems of the company’s strategic cost management,and concludes the advantages and disadvantages of the current state of strategic cost management.With the optimization of the value chain and the strengthening of cost drivers for the company,an optimization plan for the company’s strategic cost management is proposed.At the same time,the goal of the optimization plan is drawn up,and the difficulties and points of the implementation of the optimization plan are analyzed.Corporate culture and performance management protects the implementation process of our strategy.Finally,the start-up plan for strategic cost optimization has been developed after the analysis of Xinbo’s strategic products.In the future,we also need to continuously improve cost awareness,strengthen strategic positioning,and improve management efficiency to realize the value of strategic cost management and further promote the sustainable development of enterprises,which provides a theoretical basis for the development of enterprises.