Research On Cost Control On The Basis Of Improving Enterprise Value Of CH Motor Co., Ltd

Nowadays, the diverse, complicated as well as unpredictable economic circumstances bring not only chances but also challenges to enterprises. And consequently, in order to adjust themselves to the changing economic development, enterprises should, under the guidance of management ideas of sustainable, farseeing and comprehensive enterprise values, consider all the issues from a strategic aspect and develop enterprise values to be management cores as well. As the economic environment changes, the low cost is of no advantage to many Chinese industries any more. Instead, they gradually usher in an ear of high cost. What’s more, such a situation is fully demonstrated in the manufacturing industry. Meanwhile, the competition among enterprises is also becoming fiercer and fiercer. Based on those above, we can draw a conclusion that, whether the cost is managed well or not and whether the cost control is efficient or not exert a direct influence over enterprises’ profits and value improvement while an overall cost control optimization then turns to be the key factor for enterprises to improve their values. However, when performing cost management, many enterprises actually just pay attention to short-term profits and ignore their long-term development. And if problems existed in such a cost control mode cannot be efficiently solved, it’ll take enterprises unnecessary cost while the profits of those enterprises will be influenced as well. And what will then be influenced are enterprises’ competitive ability and value improvement. Therefore, this paper’s giving an analysis of cost management from an angle of improving enterprise values is of some practical significance.First of all, based on the control theory, enterprise value theory and exquisite cost management theory, this paper gives a detailed and objective analysis of the current situations of the cost structure and control system of CH Motor Co., Ltd by taking the company as the study object. And then, key points of cost control and problems existed in cost management as well as the causes of those problems are found out through analysis and contrast. Meanwhile, based on the actual conditions of the company, corresponding countermeasures as follows are put forward: establish a strategic consciousness of cost management and enable all the members to get involved in cost management; enhance control over the key cost points that will influence enterprises’ value improvement and improve cost management efficiency; establish and improve cost management and control systems so as to lay a solid foundation for cost management and control; promote exquisite cost management, optimize value chains and remove unprofitable businesses so as to not only utmost meet customers’ needs and gain maximum values but also improve enterprise values and enhance enterprises’ competitive abilities.