Research On Cost Control Of F Hotel Based Onvalue Chain Analysis

In recent years,China has loosened its economic policies on foreign markets,meanwhile,the policies on home markets have been tightened.Together with newly issued policies regarding to hospitality industry,a large proportion of the industry has suffered a lot,lots of hotels have to face problems like low profit,tight budget and poor management.However,the fierce competition in the market demands starred hotels to satisfy their customers from all aspects.Due to the degenerating equipment and increasing cost,along with the impact of budget hotels and high-end hotels,Hotel F needs to solve the emergent problem that is how to make profit in the intense competitive environment as soon as possible.Traditional cost control measures are no longer effective,thus a new method of cost control has a profound influence to not only Hotel F but also the whole industry.This article is based on the value chain theory and it applies case study method to analyze Hotel F.Hotel F has three leaks in its cost control: Inadequate control of purchase cost,high proportion of catering costs and improper control of labor costs.Those leaks are caused by several factors including weak cost control consciousness,out-dated cost accounting method and the lack of overall value chain management theory.In order to solve these problems,it is necessary to introduce a new cost control method based on the value chain theory,construct a new cost control system guided by value chain theory,provide the goal and principles of the system and analyze the external value chain and then combine it with inner value chain.The article will also analyze and research respectively on purchase,service and sale of business process of Hotel F in order to come up with specific measures of cost control.At last the measures have been applied and met our expectations.At the same time,according to the inner and external chain value,the article puts forward safety precautions to guard the cost control system of Hotel F.This article is based on the chain value theory,tries to apply low cost leadership strategy to Hotel F and regard the enhancement of value from a long term view point.What’s more,to budget hotels,starred hotels and even other industries,this article has the model significance of targeted cost control.