Research On The Cost Management Mode Of The Internal Value Chain Of The Enterprise Group

Under the new normal of economic situation,the traditional resource-based enterprises are facing more and more urgent demands for "supply-side reforms".Enterprises are required to improve their profits while optimize,upgrade and reconstruct the industrial chain,take environmental responsibility at the same times.The idea of value chain cost provides new ideas and means for enterprises to implement cost management.,as it is actually corresponds to the industrial chain type of large-scale enterprise groups.And the old cost management is no longer applicable to the new environment.Therefore,the cost management mode study of the internal value chain of the enterprise group is particularly necessary.This study uses a combination of literature research and descriptive case study based on typical cases.The sources of data include first-hand information on interviews and secondhand data collected.This research selected ELION Group as a sample case from the listed companies in Inner Mongolia.Firstly we introduce the background,characteristics and the cost management of ELION;Secondly,analyze the cost of the internal value chain to determine the cost drivers for each link in the value chain;Finally,based on the cost drivers of each link,targeted cost management strategies are developed from product R&D design,procurement,production to sales.The contents of ELION's internal value chain cost management mainly include specific cost management measures,performance assessment methods,and safeguard measures based on trust mechanisms and incentive mechanisms.The ELION-model not only builds a value chain cost management framework that includes cost driver analysis,management strategy,performance assessment and safeguard mechanism,but also builds a multiple method-integrated value chain cost management methodology.The research conclusion shows that the internal value chain cost management model is more applicable to the industry chain value chain group enterprise,and it provides operable solutions in theory and practice.