The Research On The Value Chain Cost Management For Iron And Steel Enterprises In China

Since the21st century, there have been earth-shaking changes in businessenvironment and management mode, which iron and steel enterprises in china are facedwith. Foreign steel companies break into the Chinese market, Overcapacity and thephenomenon of product homogeneity in steel market in China is becoming more and moreserious, The iron and steel industry has been into the era of meager profit, the traditionalmodel and method of cost management is becoming more and more inadaptable to theneeds of cost management for Chinese iron and steel enterprises. As a new mode andmethod of cost management, the value chain cost management can improve the operationand management of iron and steel enterprises in China. It can also be conducive to realizethe strategic target and keep sustainable competitive advantage of low cost for Chineseiron and steel enterprises. It meets greatly the needs of cost management for Chinese ironand steel enterprises in the new economic situation. Firstly, the paper integrates the theoryof value chain into cost management, defines the theory of value chain cost management,lays a theoretical foundation for the implementation of value chain cost management inChinese iron and steel enterprise. Secondly, the paper analyse the choice of costcompetition strategy, Manufacturing process, the main steps and problems of costmanagement and Strategic cost drivers, Points out the necessity of the implementation ofvalue chain cost management in Chinese iron and steel enterprise. Thirdly, the paper buildsthe framework of the implementation of the value chain cost management for iron and steelenterprises in china, clears the premise condition of the implementation of the value chaincost management, states in detail how to carry out the value chain cost management foriron and steel enterprises in china from three aspects that contains the internal value chain,the horizontal value chain and the vertical value chain, establishes the performanceevaluation system Based on balanced scorecard in order to examine the implementationeffect of the value chain cost management. Finally, the paper Selects L steel groupcompanies as a case, which demonstrates the feasibility problem that iron and steelenterprises in China put the value chain cost management into use.