Research On Strategic Cost Management Of Company A Based On Snc Model

Since the beginning of the 20 th century,with the advancement and development of science and technology and the acceleration of the process of global economic integration,a series of economic effects brought about by science and technology have risen rapidly,which has changed the way of competition of modern enterprises-from a pure product competition Strategic competition.Under this trend,in order to survive in a more competitive market,management must rethink more efficient,rational,and scientific management methods.Cost management is an indispensable part of company management.Management must look at it from a new perspective.The company’s current cost management model has played a crucial role in the development and growth of the company,but it cannot fully adapt to the rapid changes in the modern market.Therefore,according to the current economic development situation,company A has implemented strategic cost management.It is imperative.Strategic cost management is the inheritance and development of the existing cost management theory and will become a new trend in the development of cost management theory.Combining cost management with the company’s strategic goals will help companies quickly adapt to the ever-changing market competition environment and enable companies to obtain cost advantages in the competition,thus contributing to the realization of corporate strategic goals.From the first time that Simon put forward in 1981,the theory of strategic cost management is continuously developing and perfecting,and three major strategic cost management models have been formed.This paper is based on the Sangke model.This article first introduced the concept,main mode and analysis method of strategic cost management.In the case,this article introduced the basic information and cost management status of Company A.Company A now has problems such as lack of talent,high procurement costs,and too small cost control range.Implementing strategic cost management is to improve the management and profitability of Company A.The effective way.Analyze the strategic cost management of Company A from the three aspects of strategic positioning,value chain,and cost drivers,using the analysis tools under the Sangke model.Company A must use cost-leading competitive strategies as its mainstay and establish a relationship with upstream companies.Good cooperation,strengthen the company’s sales channel management,reform the company’s system,build corporate culture and brand,in order to improve the company’s cost management level and competitiveness.This article mainly uses the literature research method,the scene investigation method,the logic induction method to carry on the research,the main innovation lies in the pattern and the target enterprise.This article analyzes the strategic cost management of Company A from the perspective of the Sangke model.This is obviously different from the previous research and is the innovation of this article.In addition,Company A is a cement production enterprise.There are few case studies on strategic cost management for cement companies in China.Through the study of this topic,it is possible to determine how cement companies establish their own long-term competitive advantages in the current industry with excess capacity.