An Applied Study On Strategic Cost Management: Analysis Based On Chinese Saloon Car Manufacturers

Saloon car manufacturing is called "industry among industry" because of containing high technology, having long industrial chain, and contributing much to economic increase, it is the best embodiment of overall national strength and competitiveness for a country. Chinese saloon car manufacturing has made great progress in this years, but cost problem has been "the bottle's neck" that puzzled the manufacturers. If Chinese saloon car manufacturers want to enhance comprehensive competitiveness, they must change their careless means of management and low level of cost management. This paper tries to combine the western ripe theory of strategic cost management with Chinese saloon car manufacturers to make applied study, the author wish it will contribute to sustainable development and attaining competitive advantage for Chinese saloon car manufacturers.First, the author contrasts several model of strategic cost management ,and choose Shank's model as researching foundation. Second, the author makes investigaton of the strategic cost management driver of Chinese saloon car manufacturers, mainly analylizes the limitations of current cost management and the urgency of strategic cost management. Third, the author analyzes strategic cost management about Chinese saloon car manufacturers, by ways of value chain analysis, strategic orientation analysis, and cost driver analysis, the author discusses such problems as weakness of internal value chain and industrial value chain of Chinese saloon car manufacturers, advantage of competitor's value chain, how to choose strategic orientation about different corporation, structural cost driver and executional cost driver of saloon car manufacturers, and the author discusses the probability of practicing strategic cost management for Chinese saloon car manufacturers by case analysis. Finally, the author makes some suggestions of strategic cost management for Chinese saloon car manufacturers, and supplies a series of ways about reducing cost with different value tache in detail.