Cost Management Based On Value Chain Theory

In this era of rapid economic and social development,cost management is more and more concerned by modern enterprises,and the cost leadership strategy is one of the key factors for an enterprise to survive and maintain its development.Therefore,for enterprises,cost management plays an important role.However,with the increasing willingness of modern enterprises to manage all-round costs,the traditional cost management model is obviously lagging behind,and the cost management based on the value chain theory is born.Therefore,it is the development direction of the cost management of today’s enterprises to comprehensively and accurately control the cost management model of the enterprise,to achieve the cost optimization management that conforms to the characteristics of today’s enterprise development,so as to achieve the effect of reducing costs and improving performance.As an important contributor to the national economy,my country attaches great importance to the development of agriculture and animal husbandry,and has successively issued documents closely related to it.In recent years,Chinese agriculture and animal husbandry have undergone dramatic changes.From the early stage of individual planting and livestock raising by small farmers to the current stage of large-scale planting and large-scale breeding,many agricultural and animal husbandry enterprises have ushered in a new spring breeze,and the development of modern agriculture and animal husbandry in China has further possibilities.At the same time,the cost of these farming and animal husbandry companies is overloaded,and the problem of cost management is gradually emerging.Therefore,applying the cost management method based on the value chain to various cost management of these companies is the direction of cost management for these companies in the future.Taking New Hope Group as an example,this paper analyzes the company’s value chain and finds out the appropriate strategies for cost management based on the value chain to enhance the value of New Hope Group,which also has reference significance for other similar enterprises.First of all,this paper briefly expounds the relevant theories of value chain,cost management and value chain cost management;then,taking the pig industry chain as an example,it briefly introduces the current situation of domestic agriculture and animal husbandry and the general situation of New Hope Group analyze.Through the analysis of the group’s internal value chain,this paper finds out the problems existing in the group’s R&D,production,sales,etc.,and on this basis,optimizes the group’s internalvalue chain,thereby improving the group’s resource allocation rate;secondly,analyzes the external value chain of New Hope Group,and uses various methods such as AHP to find the best partnership between upstream enterprises and downstream customers,and build a more reasonable strategic management system.Finally,this paper compares and analyzes the representative competitors,so as to find ways to improve the management level of New Hope Group,and establish business alliances with competitors to achieve resource sharing,so as to gain competitive advantages.