A Study Of Cost Management On SEP Corporation

SEP Corporation is one of the obvious state-owned electric power companies in West China, which won a position in the national strategic of energy development. Since SEP Corporation has been operating with help of administrative monopoly privilege for a long time in the electricity market, it has not participated genuine market competition, also has not established the market-oriented management and culture, therefore, SEP Corporation has not formed its powerful core competitive ability. Considering SEP Corporation's developmental environment and referring the international electric power development tendency, we have obtained a mutual recognition that the reforming on electric power organizations is unavoidable, and the natural monopoly superiority in the electric power industry would gradually placed by the market competition. As we know, the cost advantage is the basic advantage that can give an electric enterprise competitive ability. Therefore, the initiative study and the introduction on the international first-rate cost management, including its smart theory and successful practice, will be the just strategic for any electric power enterprise to take. By studying SEP Corporation's own condition, enhancing strong points and avoiding weaknesses, we got a most suitable modern cost management pattern for SEP Corporation, the strategic cost management. Then, we designed a set of scientific and effective strategies cost management system in SEP Corporation. After carrying on the strategic cost management system, we obtained the conclusion that the strategic cost management was effective, and will be able to strengthen SEP Corporation's competitive ability in long term.