Value Chain Cost Management Model Is Based On Soft Furnishings

Soft decoration industry is an emerging sunrise industry which is derived from the construction and decoration industry, after nearly a decade of development, the soft decoration industry has become economic consumption hot spots and a new growth point of China. Facing of the rapid development of the soft decoration industry, competition between soft decoration companies has become more and more intense. In order to ensure its own competitive position, companies have to seek effective ways and means to build and solid the core competitiveness. Recent years, with the concept of "soft decoration" is generally accepted, large numbers of soft furnishings design company, soft ornaments procurement and configuration terminal enterprise in Guangdong, Shanghai and many other cities in the Mainland are spring up, more than2trillion-output and demand, showing the trend of the universal soft decoration. At the same time, with the end of WTO transition period, large numbers of the foreign-funded enterprises has poured into the open China architectural decoration market, further more, with the forward integration of furniture supplier and the backward integration of the real estate development, the market competition is further intensified. More and more soft decoration companies have realized that if they want to increase its economic efficiency and enhance core competitiveness under the chance and challenge co-exist market environment, it is necessary to strengthen the cost management. However, the current cost management model used by the majority of our soft decoration enterprises has been unable to adapt to the changing environment. Therefore, it is imperative to converse the cost management concepts, broaden the scope of cost management, optimizing cost management methods and explore new cost management model to adapt to the needs of the modern economy development and value chain management. As an effective tool of value chain management, the theory of value chain laid a theoretical foundation for the exploration and reconstruction of the cost management mode.Therefore, the thesis writing precisely aimed at to analyze and investigate the combination of theoretical and practical application of methods of the value chain and the cost management theory, and on this basis to build a cost management mode which the soft decoration enterprise’s development needs and play an important role in soft decoration enterprise decision-making control.This thesis accordance with the discovering, analyzing and solving problems ideas, first, with reference to the research of previous scholars on the value chain and the cost management theory and analyzing the characteristics of the soft decoration enterprise product and the production process cost management, proposed the necessity of cost management based on the value chain of soft decoration enterprise, and introduced the value chain theory into the soft decoration enterprise cost management; then, through analyze the soft decoration enterprise’s industry value chain, internal value chain and project value chain, have build the soft decoration enterprise value chain cost management model, and in order to achieve the purpose of reducing the cost proposed the cost management methods from the two levels of corporate and project; finally, combined with the actual company LS to analyze the situation of construction enterprises in value chain cost management, and hope the value chain cost management of construction enterprises have a certain significance for construction enterprises.Through this research, finally come to the following results. First of all, through analyze the cost management of soft decoration company and compared the cost management mode of soft decoration company with the value chain cost management mode, found the advantages of the value chain cost management mode, and proposal the necessity of build the model; secondly, through analyzed the value chain of soft decoration company, constructed the value chain cost management model from enterprise-level and project-level. Finally, through case analysis analyzed the specific implementation of the model application, and laid the foundation for further research on the value chain and cost management.