Research On The Improvement Of ZX Company Cost Management Based On The Value Chain

With the advancement of the times,the deepening of economic globalization,knowledge and networking,the business environment has become more complex and highly uncertain.The domestic economic transformation is in the forefront,and enterprises are facing an increasingly competitive dilemma.Both of the business environment and the management model have undergone revolutionary changes,the entire value chain are in the trend of changing.Companies are increasingly close to upstream suppliers,downstream distributors,and customers,and companies with low-cost strategies that have only relied on price advantages are hard to get excess profits in the market economy.Therefore,if enterprises want to maintain their core competitiveness in the ever-changing environment and gain long-term competitive advantages,they must keep pace with the times and be brave in transforming the extensive cost management methods.The concept of strategic cost management which based on the value chain emerged as the times require,providing a new idea for the cost management of enterprises.This thesis selects ZX company as the research case,and uses literature review method,case analysis method,quantitative analysis combined with qualitative analysis and comprehensive induction method for analysis.Based on the audited financial statements of ZX Company in the past five years,through detailed analysis of the cost structure and cost components of the company,the problems and deficiencies in the current cost management process of the enterprise are found,and the causes of the problems are analyzed.Exploring the path of improvement,and proposing the idea of strategic cost management based on value chain,decomposing all aspects of R&D,procurement,production,sales and service in the production and operation process of the enterprise,dialectically analyzing the cost drivers,and discussing ZX detailed improvements have been made in three aspects: internal value chain,external value chain and value chain integration.At the same time,in order to make the strategic cost management of the enterprise smoothly implemented,a series of operational safeguard measures are provided to assist,it is practically targeted.Strategic cost management based on value chain is a modern management concept that integrates value chain and cost management at the height of the overall strategy of the enterprise.It is a new type of cost management system,which is also in line with the requirements of the development of the times and can be better reflect the superiority of the company in cost management.The optimization of value chain as the top priority of cost management helps ZX to overcome the limitations of existing traditional cost management,identify cost drivers from the source of cost,and implement comprehensive dynamic monitoring and management of costs.Better adapt to changes in internal and external environment,and improve the effectiveness of cost input from the perspective of integrity,long-term and competitive,optimize the construction and restructuring of enterprise value chain,to better provide a basis for management decision-making,enhance corporate competitiveness.