The Strategic Cost Management Of XM Company

With the development of science and technology,economic globalization,the competition between enterprises is increasingly fierce,forcing companies to seek methods to reduce costs.The key of enterprise competition focus in the field of cost management.The change of internal and external environment requires enterprises research on formation from the perspective of strategic and control costs.At present,our country enterprise in the implementation of strategic cost management mode is still in the initial stage of development.Most enterprises still use the traditional model of cost management pattern,can not adapt to the increasingly fierce market competition mechanism,unable to meet the needs of the development of enterprise.The strategic cost management based on value chain is helpful to shape the enterprise competitive advantage,help enterprises to better adapt to changes in the environment.For modern enterprises,therefore,must will ascend to the height of the strategic development of cost management,and to effectively integrate the value chain of its own,a comprehensive and systematic analysis of the industry environment,looking for a lasting competitive advantage for the enterprise.This paper uses strategic management,accounting,financial management or related discipline knowledge,through the method of integrating theory with practice,the research on the strategic cost management mode of XM company and discussion.First of all,the paper analyzes the XM company main problems of strategic cost management.(1)Strategic positioning: the company is lack of full participation in strategic cost management;the lack of a clear strategic positioning and target cost management.(2)Company value chain: the lack of long term cooperation supplier,the cost of raw materials is higher;Sales channel is narrow,service level is low;high research and development costs and high manufacturing costs,lack of self-produced core components;with good competitor value chain various aspects there is a certain gap.(3)Cost drivers: economies of scale,the degree of integration,technology remains to be perfect;Value activities,deficient factors of total quality management.Secondly,it analyses the reasons of the XM problems: not enough in-depth strategic cost management idea;the lack of effective communication between departments;cost management is not sound;strategic cost driver analysis is not complete;the responsibility of the lack of scientific cost control mechanism.Finally,it put forward to promote XM company strategic cost management of the effective implementation of the recommendations.(1)Strategic positioning: to establish a strategic cost management team;improve overall strategic cost management concepts.(2)The value chain: perfect the company's upstream enterprise supply chain,reduce raw material costs;optimize company downstream customer value chain and expand sales;increase the independent innovation in order to reduce the development cost;set up rivals to the system.(3)The cost drivers: actively promote the integration of industrial chain;implement total quality management;implementation of the target responsibility cost management;strengthen the education of staff supervision;enhance the connection between the enterprise of all departments.In this paper,the specific research contents include the following aspects.The first chapter is mainly to this article's research background,research significance,research contents and methods are briefly expounded.The second chapter is mainly to the summary of the related theoretical concept for this article.The third chapter is mainly to XM company strategic cost management implementation present situation introduction.This paper introduces the general situation of XM,industry background and industry chain structure,cost,and the process of the implementation of strategic cost management.The fourth chapter is mainly to XM company strategic cost management in the analysis of existing problems and reasons.The fifth chapter is mainly to promote XM company strategic cost management measures,the efficiency of advice from a strategic business positioning,value chain,cost drivers and system construction of four aspects to improve,to improve the overall competitive advantage of XM,maximize benefits.The sixth chapter is conclusion and prospect,mainly to the full text is summarized,and put forward the deficiency of this article.