Research On Strategic Cost Management Of WN Limited By Share Ltd

Electric power is not only the important material guarantee of national economic and social development, but also the basic industries and public utilities which is beneficial to the people’s livelihood. Its healthy and stable development of China’s long-term development of economy, politics, culture is of great significance. Energy planning work conference held in 2014 put forward that electricity reform will be a key part to China’s 13th Five-Year energy planning. By the end of 2015, six supporting documents related to the implementation of the state electricity reform released one by one. Much explicitly in 13th Five-Year planning proposal is put forward to reform the energy system and form effective competition in the market mechanism, the construction of low carbon safe and efficient system of modern energy. Along with China’s industrial structure adjustment and the acceleration development of electric power system reform, the price of electricity market reform work steadily. Energy cost and the interests of competition between businesses will become more intense. Electric power enterprise’s top priority is to consider how to keep the advantage in the competition in the energy market. Strategic cost management is one of the traditional cost management mode in the economic development and progress step by step after the enterprise management environment has changed dramatically after improving, which stressed that enterprises should pay attention to the internal and external environment analysis on the strategic height and the long-term development of the enterprise as a starting point. Also, enterprises should constantly improve the enterprise competition ability, cultivate the core competitiveness of enterprises and maintain the competitive advantage. It can help guide the strain energy of the dramatic changes of market environment for current energy companies.This paper consists of six parts. The first part is the introduction, which introduces the research background, research significance, domestic and foreign about strategic cost management research status, research ideas, research methods and the innovation. The second part elaborates the related theory of strategic cost management, the main contents that include the origin and development of strategic cost management and strategic cost management related concepts, strategic cost management features, the basic tools of strategic cost management. The third part is the analysis of the present situation of cost management of WN and the existing problems, the main problems and the basic situation of the cost management of enterprises. The fourth part is the analysis of opportunities and challenges that WN faced in the future, it build a system for the implementation of strategic cost management, including strategic environment analysis, strategic positioning analysis and cost driver analysis and strategic evaluation and control. The fifth part provides some suggestions for WN to carry out the process of strategic cost management, including strategic culture, awareness of the strategic cost driver optimization, control strategy evaluation design. The last is the summary and prospect, pointed out the research conclusion and deficiency of this thesis and future development of the strategic cost management is discussed.This paper’s innovation is mainly aimed at cost management model of WN company, and combined with the strategic management of research and analysis. The current domestic research on strategic cost management is more focused on the strategic cost management theory and method, but is less on the implementation of the strategic cost management mode of enterprises. So the implementation of WN’s strategic cost management innovation may exist. Combining the particularity of WN and the electric power industry, this paper form a strategic perspective and analyse the cost management situation. It also suggests the idea that WN introduce strategic cost management and learn specific mode of Sank method of strategic cost management. This can improve the security strategy into the implementation of the management and help enterprises to maintain a competitive advantage in the market competition.