Research On Application Of Value Chain Analysis In Strategic Cost Management

With the more and more drastic competition, the strategic cost management becomes more and more important among the enterprises management. However, the value chain analysis, the start point of the strategic cost management, displays the serious limitation during the application, which hinders the extensive use of the strategic cost management. So this paper chooses the application of the value chain analysis in the strategic cost management as the research subject.First of all, the value chain concept and value chain analysis with contents are evaluated, and the application theory foundation of value chain analysis in the strategic cost management is pointed out. According to these, the application thought of value chain analysis in the strategic cost management is gained. Then through the qualitative and quantitative way, the application model of value chain analysis in the strategic cost management is put forward from the interior-value-chain, industry-value-chain, and rival-value-chain perspectives using three chapters. In the end the summary and theappraisement of the models are brought forward.In this paper, I think, there are two pieces of innovation. The first, it has built a model that can optimize the enterprise' interior-value-chain based on the activity based costing. This model mainly include the following aspects: analyzing the increment and efficiency of single value activity, fitting the function among the value activities by least square method, calculating and optimizing the value chain cost. The second, the profit pool model, which can carry out the quantitative industry-value-chain analysis, is improved by assets profit rate.The research in this paper increases the application validity of value chain in the strategic cost management, and has some instruction significance to the quantitative research of the value chain.