Research On The Control Mode Of Strategic Cost Drivers

Absolute cost management is the thinking to reduce cost absolutely by limiting the consumption and cutting down the expenditure, however, it is effective only in a certain range. Thus, the relative cost management must be adopted which reconstructs the basic conditions making cost occur and strengthens them aiming at enterprise's targets under the existed cost-positioned so as to reduce cost substantially because of the changes of cost drivers by the way of choosing the best location of activity, changing the enterprise's scale, innovating technologies ,reorganizing the business processes. This is a logic thinking to control cost from the angle of strategic cost drivers. Meantime, creating competitive advantages from the angle of strategic cost drivers is the focus and core of cost management in the modern enterprises.Applying synthetically multi-disciplinary knowledge such as strategic management, management accounting, economics, philosophy, synergistic management and system modeling and abiding by research thinking from theory to practice, this dissertation explains the influence mechanism of strategic cost drivers on enterprises' cost using the combination of research methods such as qualitative analysis and quantitative analysis and normative analysis and empirical analysis. Then it discusses the controlling of strategic cost drivers.Based on the theories such as scale economy, transaction cost, learning effect, technical cost management, reengineering, this dissertation explains the influence mechanism of the strategic cost drivers such as the enterprise scale, business scope, learning and its spill, geographical location, technologies, diversity, staff enthusiasm, total quality management, the relations between value chain, production capacity utilization and choosing opportunities. From the angle of the influence mechanism, this dissertation optimizes the controlling of strategic cost drivers for two times.This dissertation bases the first time optimization process that designs independent control tactics of single strategic cost driver on the full analysis of influence mechanism of strategic cost drivers regardless of the influences among strategic cost drivers.As there are the risks stemming from the independent controlling of strategic cost drivers and the influences which cost embodies among strategic cost drivers and between the strategic cost driver and the other systems, implementing independent control tactics of single strategic cost driver still could not make enterprises achieve cost competitive advantages. This means that it is necessary for the controlling of strategic cost drivers to harmonize relations among strategic cost drivers and between the strategic cost driver and the other systems in order to avoid the conflicts and ineffective actions. Thus, this dissertation analyses the synergistic of strategic cost drivers under the synergistic management theory's guidance, including the motives, levels, contents, mechanisms of the synergistic of strategic cost drives.As there are multiple strategic cost drivers in an enterprise, each of which exerts different influence on cost, this inevitably brings forward a question to optimize controlling of multiple strategic cost drivers in a specific enterprise. Only implementing simultaneously the independent controlling and the synergistic controlling, could the controlling of strategic cost drivers achieve the optimum effect. Therefore, the second time optimization process to found optimization-controlling mode and analyze their applied tactics in enterprises including the independent controlling and the synergistic controlling of strategic cost drivers is under the System Theory's guidance. The optimization-controlling mode of strategic cost drivers including the factors such as ideas of the controlling, the environment of the controlling, objectives of the controlling, the identifying of strategic cost drivers, the choosing of the key strategic cost drivers and tactics of the controlling is a set of cost management system, which guided by the optimization-controlling ideas, by means of founding the optimization-controlling mechanism of strategic cost drives , makes various factors of strategic cost drives form a strict structure, in which they interact, cooperate mutually, synchronize in order to achieve maximum control effect.From the influence mechanism to the independent controlling, and from the synergistic analysis to the optimization controlling again, the controlling of strategic cost drives with the forms of one on top of another and the functions of increasing progressively helps enterprises create cost competitive advantages after implementing above-mentioned two optimization processes.The main research achievements in this dissertation consist of:â‘ explaining the influence mechanism of strategic cost drivers and the interaction mechanism among strategic cost drivers based on the correlative theories.â‘¡designing independent control tactics of single strategic cost driver based on the full analysis of influence mechanism of strategic cost drivers regardless of the influences among strategic cost drivers. â‘¢analyzing the synergistic mechanisms of strategic cost drivers under the synergistic management theory's guidance, including the motives, levels, contents, mechanisms of the synergistic of strategic cost drives.â‘£founding the optimization-controlling mode of strategic cost drivers with clear objectives, clear targets, prominent emphasis, and forceful control tactics under the system theory's guidance and explaining its application tactics.