Study On Cost Management Of M Company Based On Value Chain

In the current economic situation,more and more manufacturing enterprises in order to stand firm in the market economy will join the market price war,in the same quality of products with low cost enterprises obviously have a competitive advantage in the market.For auto parts manufacturing enterprises,the level of cost management indirectly represents the market competitiveness of enterprises,which makes the status of cost control in enterprise management increasingly prominent.With the emergence of value chain cost management theory,it brings a different perspective and thinking to the cost management research of enterprises,which can effectively help enterprises to carry out cost management and enhance their advantageous position in the market competition.Therefore,in order to optimize cost management and maximize profit,enterprises need to think about the relationship between each link in the value chain and the impact of individual value chain operations on the total value chain net growth benefit,and innovate on the basis of traditional cost management to optimize cost management and enhance the market competitiveness of enterprises.The study of value chain-based cost management of Company M provides a practical way for quantitative analysis of the value chain by optimizing the internal value chain of the company with the orientation of cost reduction,so as to achieve the effect of cost reduction and efficiency increase.This paper takes M auto parts company as the case study object,through an in-depth investigation and understanding of M company,based on theories such as value chain,value chain cost management and operation cost method,from the current cost management status of M company,combined with the industry characteristics and operation of M company,sort out the problems of M company’s cost management and analyze them,then the internal value chain activities of M company are Then,we identified the internal value chain activities of Company M,and constructed the internal value chain cost analysis model of Company M.Through the scatter diagram regression analysis,we linked the cost of mutually influencing value chain operations,linked the cost of individual value chain operations with the total value chain net growth benefit,and calculated the total cost of value chain operations and the value chain net growth benefit respectively,and finally,based on the calculation results and the cost motivation analysis of each value chain operation,we optimized the internal value chain of Company M,and helped the company to better optimize the value chain of Company M.Finally,based on the calculation results and the analysis of the cost drivers of each value chain operation,we optimize the internal value chain of M,and help the company to obtain the cost competitive advantage better,and hope to bring new research perspectives and ideas to the cost management of similar auto parts manufacturing enterprises.