A Study On Strategic Cost Management For A Baking Food Company Named L

The integration of world culture and the development of social economy change people's living habits,and promote the upgrading of residents' consumption.The industry of Western bakery,such as bread and cakes,has developed rapidly under this trend.Hidden behind the rapid development is the fierce competition in the market,which is undoubtedly the opportunity and challenge for baking food production enterprises.To obtain sustainable competitive advantage will be the key for enterprises to seize the opportunity and meet the challenge.The theory of strategic cost management is the organic combination of enterprise strategy and cost management,it is based on a strategic perspective through cost management means to help enterprises to obtain sustainable competitive advantage,which is exactly the one baking enterprises need.L company is a large cross regional baking food production enterprises,of which the comprehensive conditions including the business scale and the prospect of development are in line with the requirements of implementing the strategic cost management theory.The selection of L as the object of strategic cost management case analysis is representative and has practical significance.This paper adopts the basic framework of strategic cost management,using strategic positioning,value chain and strategic cost driver to study the strategic cost management of L enterprises.First of all,through the external environment and internal resources analysis,we can find the advantages and disadvantages of enterprises,and establish the strategic positioning of enterprises.In addition,combined with the case of the actual situation of the enterprise and business environment,the contents of cost management and cost structure of the enterprise are expounded;based on the value chain theory,this paper analyzes each unit of the value chain and their relationships,from the perspective of enterprise,industry and competitors.Finally,the strategic cost drivers are analyzed,the direction of enterprise strategic cost management is defined,and how the cost information and decision making serve the strategy is showed.Synthesizing the cost management problems of the enterprise and the analysis above,it is concluded that L enterprise should take the strategy as the guide to improve the current cost management mode;adjust and optimize the internal and external value chain;pay attention and play the role of strategic cost drivers.At the same time for the cost management strategy of L enterprise,this paper puts forward 4 suggestions,including deepening of enterprise strategic target in the cost management decision,optimizing enterprise cost management system and controlling the hidden costs,the implementation of the practice of strategic cost management,and improving the performance evaluation system of strategic cost management.