Research On Strategic Cost Management Of Breeding Companies

At present,China’s breeding enterprises are facing a period of opportunity for transformation and upgrading.Under the background of increasingly strict environmental protection policies,the factor input of the breeding industry has reached redundancy,the large-scale breeding process has accelerated,and the cost management level and technical efficiency have been the decisive factor.The traditional cost management model has been difficult to meet the needs of the modern breeding enterprise’s business development.Therefore,strategic cost management combined with the business model of the enterprise is necessary to allocate resources reasonably and to comprehensively make the company more competitive in the long-term.This article takes Mu Yuan,a leading breeding company as the research object,uses its "self-breeding,self-reproduction and self-cultivation" integration business model as starting point to study its strategic cost management.Firstly,analyze the choice of cost leadership strategy;secondly,Based on the strategic cost management Shank model proposed by the Shank,combined with the actual situation of the case enterprise,using value chain analysis tools to explore the implementation path of strategic cost management from the "supply-production-sales-infrastructure(finance)-research and development-recycle" link of the internal value chain and the "upstream-downstream" link of the industry value chain.The evaluation and analysis of the final financial performance found that the high efficiency breeding reduced piglet production costs.The intelligent production management system,medicine input and the exploration of circular economy have effectively reduced the company’s breeding costs,energy consumption and pollution.Cost effectiveness and profitability has been increased significantly,which is better than other companies in the same industry.Finally,summarized and discussed the existing deficiencies of strategic cost management and give targeted suggestions.Based on the case study of Mu Yuan,I hope that it can be used as a reference for other breeding companies exploring the use of strategic cost management mechanisms to improve management levels and benefits.