A Research Of Strategic Cost Management Of Hanhe Cable

With the development of our economy, the progress of science and technology and the acceleration of internationalization, the economic environment that our enterprises are facing has changed a lot, bringing good development opportunities as well as challenges. The oversupply of goods, better market development and the fierce competition have brought tremendous pressure to our enterprises, especially those manufacturing companies. And one critical issue that affects the competitiveness and survival potential of enterprises is the cost. Quickly solving the problem of cost control method is what the modern enterprises urgently need to do. Under the new management environment, the traditional cost management methods are difficult to meet the needs of strategy management. Besides, it is difficult to get an opportunity to improve the cost problem from production process, resulting in hard control of the cost. Only by analyzing the cost problem from a strategic perspective can we radically change this situation. And this will force companies to make appropriate adjustments toward the targets of cost management. Thus, they will use more practical methods of cost management and the cost management strategy will be formed. Implementation of cost management strategy is the inevitable choice for our manufacturing enterprises to reform the cost management. Cost management strategy provides accurate and valuable cost information for the strategic decisions of those enterprises. Besides, it uses specific evaluating and comparative method to help managers find problems, improve strategies. Then, it will help to achieve the long-term cost reduction purpose and create long-term competitive advantage for those enterprises.This thesis is divided into five chapters to do the research. The first chapter describes the background and significance of this thesis and introduces the research status of cost management strategy both in our country and abroad. It also explains the research objectives, research methods and the research route. The second chapter gives an overview of the main theories of cost management strategy and introduces the concept of cost management strategy, the application of activity based costing, value chain analysis method, the cost driver analysis, the strategic positioning analysis and the strategic options. All these explanations do theoretical groundwork for the next chapters. The third chapter describes the basic situation of the Hanhe Cable Company.And the environment analysis and strategy choice. The fourth and fifth chapters are the key parts of this thesis. The fourth chapter is according to the characteristics of manufacturing enterprises and its cost management,establish the strategic cost management model framework for Hanhe cable company; The fifth chapter according to the characteristics and requirements of strategic cost management, establish Hanhe cable company strategic cost management performance evaluation system.