The Research Of Real Estate Group Enterprise Costs Management And Control Modes

Along with the dramatic development of the real estate industry, more and more enterprises choose to be the cross-industry and multi-types business groups. According to the different management maturity, strategy importance and external economy environment, real estate enterprise group will have different management model to operate the subordinate companies, namely strategy management and operation management.This essay is based on the in-depth study of the target cost management, which is widely used in the real estate industry, summarizes the basic principle, management procedures and management organization of the target cost management. Based on two different stages, which are setting up the target of the costs and the realization of the target, target cost management divides the whole real estate development process into three stages, that is, comprehensive study during the investment decision stage, design management stage and project management stage. Through the analysis of the different stages, the author summarizes the main objectives, the measures and instruments and the fundamental process during those tress stages.Based on the comprehensive theoretical research of the target cost management, the author has studied 22 real estate groups and drawn a conclusion that target cost management is the common practice for real estate groups, especially in the current economic situation. But different from the former mode of the target cost management, which is cross function horizontal management and total employee involvement at the two-level organization structure, the updated mode of target cost management for the real estate groups is more concentrate on the vertical management and control which is based on the ‘head quarter of the group-subsidiary companies-project' structure.Synthetically studied the theory research and case study, the author compares the differences between the strategy management and the operation management. During the different stages of the real estate development, both management modes have different crucial points, limits of authority and features of management. Apart from that, by using the SWOT Analysis the author also compares and concludes the strengths and the weaknesses for both management modes. Finally, the author suggests that different groups should choose different cost management modules based on different management objectives at the different management levels.