Research On Implementation Of The Strategic Cost Management For T Pharmaceutical Company

With the continuous development of market economy and China’s pharmaceutical industry management system, the operating environment faced by the biopharmaceutical companies in China has tremendously changed. Strategic Cost Management is developing in such background and in the ever-changing living environment, in which the enterprises are seeking cost advantage in the fierce competition, taking into account the strategic development. So the enterprise’s strategic management and cost control is facing a major test.Strategic cost management is not only the integration of strategic management and cost control features, but also a new management philosophy, which not only makes the strategic thinking of specific digitization and assessment, but also overcomes the defects of traditional cost management including the pursuit of profit maximization, one-sided assessment goals, and tactical decision-making. It requires companies to consider cost issues from a strategic height, to solve the cost problem, and ultimately to achieve the goal of optimizing enterprise management system.The advantages of strategic cost management are self-evident. But after all, as a new management theory, its practice is the test of all truth. Based on the case of T pharmaceutical companies, this paper focuses on the implementation of the Strategic Cost Management. First, we start from the analysis of strategic cost management theory, with a more comprehensive introduction to the concept, characteristics, objectives, and strategic cost management framework model, implementation steps, the method. We then discuss the management status of the T-pharmaceutical companies, introduce the strategic cost management and optimize the allocation of the original management system; through the analysis of the value chain, cost driving factors, strategic positioning, we have completed to reduce the cost of doing business, improve long-term competitive advantage for strategic cost management. Finally, with the implementation of the Balanced Scorecard assessment methods, we once again combed the various aspects of the strategic cost management, strengthening the linkages between them, optimizing the entire enterprise management system.