The Research On Application Of Strategic Cost Management In FL Agrochemical Company

China is agriculture-oriented,and agricultural chemicals and fertilizers are the basic means of production in agriculture.As a traditional industry in China,the agrochemical has made vital contributions to the harvest guarantee and sustainable development of agriculture.Since the early period of China's construction,our country has formed a relatively complete system of agricultural chemical industry,including scientific research,raw medicine production,preparation processing and a set of raw material and intermediate.China is the largest producer,as well as the largest user of agricultural chemicals in the world.Out of a high value on the problem of "agriculture,rural areas and farmers",the party and government has rated the supported agrochemical industry as first,which has a great impact on the national economy.In recent years,the development of agribusiness has got a great opportunity with the introduction of a series of agricultural policies such as industry-repaying-agriculture,but it also confronts the unprecedented pressure from the severe market competition,which is caused by the global economic downturn,insufficient effective demand,and product homogeneity.In the second half of 2015,the global performance in agrochemical market dropped by 8.9 percent,and it experienced a continuing gloom in 2016,with a 2.5 percent fall and the demand less than 1/8 from the output.It appears that the puny demand,overcapacity and destocking difficulty become the common dilemma for most enterprises.How to deal with the market changes actively so as to survive under the fierce competition has become an urgent problem to solve for agrochemical enterprises.Since the benefit of enterprise is closely related to its cost control,the strategic cost management helps the enterprise to understand,control and improve the cost from the overall situation and from the strategic height.At the same time,it pays attention to the internal cost situation and the change of external environment,instructing the enterprise to gain the advantages in competition through controlling the cost well.This paper is divided into six parts.The first part is the introduction,including the research background and significance,which summarizes the related literature from home and abroad,and points out the innovation and deficiency of this paper.The second part explains the connotation and characteristics and also analyzes the model of strategic cost management.Based on Shankmode perspective,this paper puts forward the analysis framework of strategic cost management.The third part is a discussion on the problems of FL Agrochemical Company based on the basic situation,industry status,and current situation of cost management.The forth part uses the analysis tools of strategic cost management,that is,the value chain,strategic positioning,cost driver and so on,to explore the strategic positioning of FL company.The fifth part gives some suggestions on the implementation of strategic cost management in FL Agrochemical Company.And the last part draws the conclusion based on the above analysis and gives a prospect of this research conclusion.The innovation of this paper lies in the use of Shankmode to analyze the cost management of FL Agrochemical Company,which combines the theory of strategic cost management with the practice of enterprise.Besides,relevant suggestions are given to carry out the management based on the current industry background and market situation.At present,the domestic study is mainly about the theory of strategic cost management,and the practice research on the application of strategic cost management in enterprises is comparatively little.Therefore,the combination between the theory of strategic cost management and the practice of enterprises is helpful for obtaining a long-term and stable advantage in the fierce marketing competition and dynamic industry situation.