Research On Cost Control Of Construction Enterprises From The Perspective Of Valuechain

As a traditional industry,the construction industry has played a pivotal role in China’s economic system all the time.As the main force in urban construction,construction enterprises are encountering the development opportunity once in a blue moon while facing the competition.In order to adapt to the market competition,management strategies of some construction enterprises have changed from traditional extensive enterprise management to scientific refined enterprise management.However,domestic construction industry,mainly with state-owned construction enterprises,has its own specificity.The problems of a number of employees,complex organizational structures,serious personnel redundancy,scarcity of modern management talents and ignorance of internal control are existent.With the gradual transparency of project costs and the progressive weakening of local protection,the construction market has become more and more standardized.Parts of construction enterprises are in a dilemma of high production and operation costs and low profitability and even on the verge of bankruptcy because of management problems.With the competition in the construction industry and the changes in economic environment and political situation,the survival and development of construction enterprises have encountered great challenges and impacts.In view of this urgent situation,in order to achieve sustainable development management strategies,construction enterprises must strengthen their own internal management competence,with the primary task of effectively reducing the construction cost and enhancing the internal control ability of enterprises.Construction enterprises,therefore,should strengthen the management of their own cost,and formulate and then implement targeted optimization and improvement measures.This thesis firstly introduces this study’s research background,significance,research status at home and abroad,research ideas and framework,followed by the theoretical foundation discussion of Value Chain Cost Control and the Activity-Based Costing.Then,the cost control of construction companies is analyzed under the perspective of value chain,and the cost-control characteristics of construction enterprises are summarized from three dimensions: internal value chain,industry value chain and competitor value chain.Next,the thesis takes enterprise x as the research object,analyzing the cost control problem of enterprise from two different dimensions of the internal value chain and external value chain.Finally,suggestions on the problems existing in its internal and external value chain are made,which aims to improve the x construction company’s level of cost control and management,enhance its cost accounting ability,and further strengthen its market competitiveness.This paper holds that under the condition of market economy,cost management directly affects the profitability of enterprises and is the key to winning the competition.Construction enterprises,therefore,should attach importance to cost management,reduce their operating costs through effective cost control measures,improve corporate profitability and market competitiveness,and finally promote their healthy and long-term development.Cost control of construction enterprises is of great significance to realize the development goals and strategies of enterprises.