Study On Application Of Strategic Cost Management In China’s Financial Institutions

Strategic cost management is the current reform of financial institutions in the fierce competition, the powerful weapon of the challenges is to manage the cost of a financial institution with the times change. With the increasingly fierce competition in the financial sector, the financial institutions to truly appreciate the sense of crisis of survival, improve the core competitiveness is growing. Strategic cost management cost management strategy-oriented, through value chain analysis and a comprehensive analysis of the bank’s own value chain competitors; strategic positioning analysis through accurate market positioning; strategic cost analysis through comprehensive and accurate analysis of the various hidden Cost Driver; each value activities targeted financial institutions to retain or removed to form a core competitive advantage for financial institutions to target and enhance the long-term competitiveness of the financial institutions.The comparative advantage of strategic cost management and traditional cost management is strategic cost management while concerned about the impact the bank’s internal conditions and external environment; strategic cost management in favor of the bank’s long-term advantages to achieve and maintain; strategic cost management is concerned that the bank’s long-term strategic objectives; strategic cost management cost management culture conducive to shaping. Strategic cost management in domestic financial institutions FAQ applications is the dominant emphasis on cost management,ignoring the hidden costs of management; strategic cost management does not penetrate into all aspects of financial institution operations; not established a comprehensive strategy to improve cost management system. The main reason is that the old cost accounting system, cost accounting method is simple; the value chain concept system has not been introduced in strategic cost management; cost elements of strategic cost management failure, cost driver analysis is not comprehensive.Strategic cost management in the application process for domestic financial institutions clear strategic positioning of financial institutions, value chain analysis,strategic cost financial institutions financial institutions analyze safeguards strategic cost management applications in domestic financial institutions.By PEST & SWOT SL rural cooperative banks for a strategic positioning, a clear strategy for its development cluster. From the industry value chain, the internal value chain, value chain competitor SL rural cooperative banks on the value chain analysis. SL combines rural cooperative banks gather strategic development and implementation of the structural cost drivers cost drivers of both gives recommendations for cost control.Proposed the establishment of strategic cost management concepts; for the use of the concept of strategic cost management and organizational readiness to do; to accelerate cost information system; establish and improve the incentive costs, strengthen internal cost management motivation; strengthen supervision and inspection, to strengthen the accountability of violation of discipline personnel; strengthen safeguards cadre staff SL Rural Cooperative Bank building strategic cost management.