The Application Research Of Strategic Cost Management Of Real Estate Enterprises In China

As the country’s macro-control efforts of the real estate industry intensified, thereal estate enterprise already farewell past glories and entered “winter period". In theface of the downturn market environment, the cost management for real estateenterprise is crucial. And strategic cost management as a new generation of costmanagement method, because it breakthrough the traditional cost management that onlylook at how to reduce the cost. Strategic cost management organic units the costmanagement and strategic management, which help the enterprises, handle therelationship between business developments and strengthen cost management correctly,Strategic cost management can improve the whole economic benefits of the enterpriseand more and more enterprises like it.Therefore, this paper discusses the real estate enterprises how to the specificapplication of strategic cost management. Firstly, the author thinks Shank model is oneof the most perfect one after evaluate and analysis the current application mode ofstrategic cost management. Secondly, the author use Shank model as the base andimproves and perfect it. Then the author tries to build the strategic cost managementapplication model of real estate enterprise of our country and analysis the application inthe real estate of China, elaborated the specific application process and main content ofstrategic cost management. At last, this paper summarizes the problems in the practiceof strategic cost management in China and outlook the prospect of the application ofstrategic cost management of the real estate in China.The main results of the research of this paper are as follows.1. This paper has a systematic study of the strategic cost management theory andapplication model, and analysis the advantages and disadvantages of the existing application modes.2. This paper improves and perfect Shank model based on the analysis of theexisting application mode. This paper tries to build strategic cost managementapplication model of real estate enterprise in our country. The work of this study has acertain reference value scientific in practice of the strategic cost management.3. This paper has the case analysis of the application of strategic cost managementof real estate enterprises in China. First analysis the current situation and environmentof the real estate enterprises and proposed the competitive strategy of the real estateenterprises based on this; secondly, carry out the chain analysis and cost driver analysis,diagnostic analysis from the strategic cost management perspective on the real estate; tomake clear the key of the chain optimization direction and strategic cost control. Finally,put forward a series of reform thought based on the problems found in the diagnosticanalysis, including the introduce target cost, value chain optimization and cost controletc4. This paper tries to establish the performance rating index system of the realestate enterprise. This work plays a guiding role in Chinese real estate enterprisestrategic cost management.