Research On Application Of Cost Management In HY Company Based On The Value Chain

Along with the rapid development of High-Tech,the global business environment has been changing constantly,thus it is required for any enterprises to have a higher ability of operation and management,among which the cost management is of particular importance.Effective cost management enables enterprises to gain the advantages and earn profits from business processes.Value chain management is a strategy to effectively control costs and explore potential customer value.According to a comprehensive view of business activities,the cost management based on the value chain identifies the connections among the values of various activities,which manages the cost-related resource consumption along with each step of a value chain.By effectively identifying and managing the various resources that relate to the enterprise,the value chain cost management takes a series of specific policies to maximize the management efficiency,to control the costs,and to create and maintain the sustainable competitive advantages as well.In this thesis,the research starts from the theoretical analyses,and then adopts case study method.The research uses HY Company as a case to further study the value chain cost management.The thesis first introduces the related theories on value chain cost management,reviews and summarizes the latest literatures from domestic and foreign researchers.Based on this,the thesis analyzes the cost structure by combine the background and features of HY Company,and states the present situation of cost management,and then finds out the current problems of cost management activities in HY Company and further analyzes the necessity for HY Company to manage the cost based on the value chain.After this,the thesis uses SWOT to analyze the company's strategic positioning and strategic cost driver,and then analyzes both the internal value activities and external longitudinal value activities of HY Company with the perspective of value chain,and compares the advantages and disadvantages to competitors,respectively.Finally,the thesis proposes the value chain cost management methods for HY Company.The cost-control points in the internal value activities of HY Company are identified by the method of cost-coefficient discrimination for activities,and the improvement measures are proposed for the cost control points to manage the cost in internal value chain.The best cooperative suppliers and distributors are selected by AHP to manage the cost in external vertical value chain.By collecting the information of competitors,the advantages and disadvantages of HY Company are discovered for building alliance to manage the cost in external horizontal value chain.In addition,the safeguard measures are put forward for the implementation of value chain cost management to promote the further development of HY Company.The study of this thesis shows that the value chain cost management can adapt to the development needs of HY Company,and the application of value chain cost management can help company to maintain long-term competitive advantages and realize sustainable development.In the current market economy environment,this study is expected to provide enlightenment for same enterprises to improve the existing management model and fully explore the core competitiveness.