Application Of Strategic Cost Management In HK Bank

For a long time,cost management is important and difficult enterprise financial management,along with China's accession to WTO,foreign banks have been pouring into the Chinese market,China's commercial banks face competition and challenges of domestic and international markets,so cost control domestic commercial banks has become a serious problem,but also an important factor in international competition participation.However,the traditional cost management simply to reduce costs as the goal,cost information provided by the lack of accuracy and transparency,there are many defects,so we need to introduce new cost management model-Strategic cost management.Strategic Cost Management(Strategy Cost Management,referred to as SCM)is a new method of cost management,cost management and strategic management it is a powerful combination,it is concerned about the cost of the enterprise but also always concerned about the changes in the external business environment,competition and competitors change strategies in order to achieve and enhance their strategic position,the purpose of obtaining above-average income,and thus more global,forward-looking and superiority than traditional cost management.This paper introduces the framework of SCM,and then the present situation of the application of SCM in the banking industry is analyzed.Many cost management present situation of The HK bank is found by the point of view of SCM,and from the SCM of the value chain analysis and strategic positioning analysis two aspects put forward the optimization scheme.SCM is on every important cost control method in the modern economy,it not only controls the cost,but also develops appropriate strategies standing for company and enhances competitive capacity in a global perspective.The company is developed keep up with the trend of The Times development,gains A Competitive Advantage in the fierce competition environment,indicates the direction for the development of enterprises.