China’s Steel Enterprises Strategic Cost Management Research

The rapid development of modern society, the continual change in the economic, led to higher requirements for the enterprise’s ability of adapting to the environment. On the basis of a foothold in the market, if the enterprise want to have the ability of getting long-term profit and the stability of competitive advantage, strengthen the core competitive power which can make the enterprise in the invincible position, to lay a solid foundation for the future, the only way to seek change is from the management. In the enterprise management, cost management is the most important aspect, only to find out the best mode of cost management, put the cost down to the most reasonable state, could add more possibility in the competition, bring benefits for the enterprise. How to do this, is a problem that each enterprise managers have been thinking all the time.In today’s high-speed economic development, the traditional cost management mode has been unable to meet the growing needs of enterprises, how to make modern enterprises to adapt to the fierce competition, seek long-term development, only starting from the new ideas to explore this question, from the height of the strategic planning cost, use value chain analysis, cost driver analysis, strategic positioning analysis, for the enterprise to change its cost management method, from a new perspective to paint a new blueprint, in a broader space for the enterprise to get new competitive advantage. The source of the value chain analysis is internal and external business activities, from the internal value chain and horizontal value chain, vertical value chain of each link, stripping analysis respectively, after comprehensive consideration, will be reflected in the value chain of each link contact dynamic, to provide a full range of information data; The cost drivers analysis help enterprise identify the driving factors of enterprise cost, find out the pros and cons of enterprise cost; Strategic positioning analysis based on all aspects of the status of the existing conditions and may face, describe the plan which is most suitable for the development of the enterprise at present. The use of strategic cost management, from all aspects to shape enterprise cost advantage, bring beneficial help for enterprise’s competition, make the enterprise to better achieve their strategic objectives.In this paper, in the process of writing, first of all describe the main research present situation, then give to the status quo of China’s steel industry has an overall summary, analysis the state of operation and cost management, and thus puts forward universal problems in iron and steel industry in our country. Then combined with the specific case analysis, from the actual situation of W enterprise, the concrete methods of cost management, analyzing the pros and cons of the current cost management mode. In the concrete analysis of the case, start from the three analysis tools of strategic cost to compare the detailed description, especially focuses on the internal and external value chain of the enterprise of digging, after the analysis research, give a summary to the case of enterprise management mode. Strategic cost management is very practical means of enterprise management, is widely used in all walks of life, its successful application has brought many benefits for the enterprise. Iron and steel enterprises have relatively long development course, it is very important manufacturing industry in our country, plays an important role in the construction of our country. At this stage of the present study, this article through to the industry’s overall grasp and case the concrete analysis of the enterprise, put forward some of China’s iron and steel enterprises in strategic cost management problems, and at the end of the article gives several Suggestions, in order to our country iron and steel enterprise by optimizing the cost management model and make contribution to the strategic competitive advantage. But as a result of the author’s ability is limited, the research content and research on the way there are many deficiencies need to improve, the existence of deficiencies also provides direction for future research.