Research On Strategic Cost Management Of CQ Drilling Company

Now days,the world economy is still in the depth of the adjustment stage of financial crisis,The rapid growth of China’s economic development into the new normal,CNPC now in the phase of critical steps that from focusing on the scale development to paying more attention to quality & benefit development,internal and external environment is undergoing profound and complex changes.Since 2015,the international oil prices experienced a cliff-like drop,the demand for oil and gas slow down and a sharp decline in oil and gas industry management benefit.A sharp fall in Oil and Gas Industry has happened.The instructions of the CPC Central Committee and the State Council about the reform of state-owned enterprises clear that " the business state-owned operate according to the marketing for enhancing the vitality of the state-owned,centering on the capital’s function capital and preserving and increase the value of state-owned assets as the main target,Complaining with legal requirements and surviving of the fittest,orderly retreat ";"Let go of business competition,promote market-oriented allocation of public resources".That means the marketization rate of state-owned accelerated result in fierce competition and the press Connected transactionThrough using the theory of Strategic Cost Management,CQ Drilling Company’s cost management status and problems are discussed.Design strategic cost management scheme and the framework for the CQ Drilling Company,and analysis the CQ Drilling Company in Strategic environment,strategic positioning,value chain and strategy.CQ Drilling Company should take strategic cost management security measures.These would help the CQ Drilling Company change the management ideas,improve the operating performance,and obtain a lasting competitive advantage,achieving the Bigger and stronger Beneficial in conclusion.