Strategy Oriented Cost Controlling Research In Group Company

Cost controlling is a core part of enterprise management, it has a bearing on the survival and development of enterprises. In the past the study about cost controlling mainly focused on lowering the cost in the production process, it was a "production-oriented" cost control. However, in the sense of modern scientific management, corporate cost controlling is an emerging area. Compared to the traditional, modern economic environment has undergone dramatic changes, and traditional cost controlling mode can't go up with the development and innovation of enterprises. In order to succeed in today's competitive world market, we must break up the traditional cost control mode and explore an advanced cost controlling mode that adapted to the new environment.In this paper, we study Group Company and give a cost controlling frame that take strategic as guide, which based on a deep study of the cost theory and flawed model of traditional cost controlling. And we also introduce its basic theory, goals and control methods of cost controlling. Lots of projects have strategic impacts on the Group Company, from which we select representative ones from a strategic and group perspective and have a detail introduction, such as developing new products and strategic procurement. We summarize the basic business processes of new product development and divide it into four parts, new product designs, Framatome, NSD and list. In each part we have detail introduction about its cost controlling objectives and methods. In the Group Company's strategic procurement, we also give a definition and principle of procurement strategy. Procurement control strategy consists of four parts, they are the controlling before procurement, in the procurement, after the procurement and strategic procurement based on vendor management. In every part, we summarize the methods of cost controlling and briefly introduce Group Company's development trend of strategic procurement. Finally, it is the summary of the paper.