A Research On Strategic Cost Management Of Construction Enterprises

Along with the continuous development of the market economy and the deepening reform of the infrastructure management system in China,the competition environment that construction enterprises face has changed and become fiercer.It has become an urgent issue faced by the construction enterprises that how to seek for cost advantages and growth in this changing competition environment.Strategic Cost Management emerges and develops for the new requirements of strategic management in this fierce competition environment.Its essence is to seek for long term competitive advantages for the business.Construction enterprises in China must carry out Strategic Cost Management if they want to develop proper competition strategies to gain sustained competitive advantages according to external and internal situation.At the same time,in a market economy environment,many construction enterprises are one kind of integrated construction services provider,whose business range,besides production activities,from design,consultation to other services.The cost management of construction enterprises in China can play a positive role only when it is in line with the industry characteristics.Therefore,it has practical significance to find out Enterprise Cost Management methods which is in line with the construction industry characteristics.This dissertation discusses the Strategic Cost Management of construction enterprises,combined with the characteristics of the construction enterprises.The dissertation includes six chapters:Chapter OneIt introduces the background and significance of the topic,the development of Strategic Cost Management,the necessity and the feasibility of carrying out Strategic Cost Management for construction enterprises.It also introduces the research purpose, contents,methods,innovation and the shortcomings.Chapter Two It reviews the main perspectives about Strategic Cost Management in domestic and international literature.Chapter ThreeIt systematizes the theories of Strategic Cost Management,introduces the concepts, characteristics,analysis methods(such as strategic value chain analyses,strategic location analyses and strategic cost driver analyses) and cost management methods (such as Target Costing and Activity-based Cost Management) related to Strategic Cost Management.Chapter FourIt is about the cost management analysis of construction enterprises in China.This chapter discusses the characteristics of construction enterprises,the situation and defects of their cost management,and analyses their value chain,strategic location and cost drivers.It also discusses the cost management pattern of construction enterprises,and considers that they should combine Target Costing and Activity-based Cost Management as their cost management method.Chapter FiveIt has case studies about one particular construction enterprise.Chapter Six ConclusionIt is the trend of the times that the construction enterprises in China carry out strategic cost management.The construction enterprises in China should integrate design,consultation and other related areas and take the path of the general contracting companies.The combination of Target Costing and Activity-based Cost Management is more suitable for construction enterprises cost management.