Discussion On The Problem Of Company Strategic Cost Management

Since China implemented the great policy of reform and opening up,the economy has been developing by leaps and bounds,and a large number of enterprises continue to grow and expand.But with the intensification of market competition,many modern enterprises are faced with both opportunities and challenges.In order to adapt to the rapid changes of the market environment,enterprises must establish a more scientific and reasonable enterprise management system according to the market and their own conditions.Any operation of an enterprise is inseparable from capital,and the rational and efficient use of funds is crucial to the development of an enterprise.As the foundation of the operation of the enterprise,the purpose of the fund is to make the cost factor of the enterprise interact with the competitive position of the enterprise,and to find a way to reduce the cost of the enterprise constantly and improve its competitiveness continuously,which is an important driving force for the long-term development of the enterprise.As the modern enterprise management system in our country is in the stage of continuous improvement and development,many enterprises have appeared the situation that the enterprise cost management system and the actual operation situation of enterprises do not match.Most of them have solidified their traditional concepts and neglected the importance of scientific cost management,which has seriously hindered the development of enterprises.In order to improve the competitiveness of enterprises and realize the effective operation of enterprises,it is necessary to use scientific and reasonable methods to manage enterprises,so as to establish a modern enterprise management system.In recent years,with the intensification of market competition and the development and change of China's economic system,many enterprises are facing more and more competitive pressure of survival of the fittest.At the special stage of our country's economic and social development,enterprises must reform their own modern enterprise system in order to stand firm and stand out continuously.Pursuing high profit is the ultimate goal of enterprises.Enterprises can save costs and improve the utilization efficiency of resources through scientific and efficient strategic cost management.At the same time,it provides new ideas for the later generations of strategic cost management of enterprises,and provides theoretical and practical guidance for intermediaries in the service of enterprise cost management.Maximizing the interests of enterprises.Taking AMK Electrical Appliance Company as an example,this paper studies the current situation of cost management under the modern enterprise system,analyses the problems existing in the current cost management system in China,and finds out the ways and methods to solve these problems,so as to improve the comprehensive competitiveness of enterprises with the best cost or efficiency.Under the background of China's economic development,the development of China's household appliance industry has made good progress.AMK electrical appliance's advantages in products,core technology,quality management,brand and production scale make it a world-class air conditioner manufacturer.If AMK electric company wants to maintain its market position and achieve the Centennial goal of AMK electric appliance company,it is necessary to form sustainable competitive advantage,so strategic cost management is particularly important.This paper analyzes the problems and causes of AMK electric company in the strategic cost management,and puts forward the corresponding countermeasures.This paper is divided into six parts.The first part is the introduction.This paper introduces the background and significance of this study,combs and elaborates the research status of the three theories: strategic positioning,value chain analysis and strategic cost drivers at home and abroad,and puts forward the contents and methods of this study,as well as the innovation and deficiencies of the study.The second part is the theoretical overview of strategic cost management.This part introduces the definition,basic characteristics,objectives and principles,implementation steps and influencing factors of strategic cost management,and introduces the theoretical basis of strategic cost management.The third part is the case introduction of strategic cost management of AMK Electrical Appliance Company.This paper summarizes the basic situation of AMK Electrical Appliances Company,describes and analyses the system background and implementation status of strategic cost management of AMK Electrical Appliances Company.The fourth part is the analysis of the problems and causes of the strategic cost management of AMK Electrical Appliances Company.The problems and causes of strategic cost management in AMK Electrical Appliances Company are analyzed,which provides the basis for the analysis of the following suggestions and countermeasures.The fifth part is the Governance Countermeasures of AMK Electrical Appliances Company to improve strategic cost management.According to the case analysis of the fourth part,the corresponding countermeasures are put forward.Finally,the conclusions and future prospects are presented.This paper concludes that:(1)value chain analysis plays an important role in strategic cost management;(2)effective strategic cost management needs to be supported by a sound strategic cost management system;(3)Mobilize the enthusiasm of employees in strategic cost control and implement full participation.In the future research,this paper can be supplemented from the following two aspects:(1)establishing the performance evaluation system of strategic cost management;(2)using activity-based costing to supplement the analysis of cost drivers.At present,with the continuous development of China's economy,strategic cost management is the key factor for enterprises to gain a favorable position in the increasingly competitive market.However,after investigation,it is found that there are many problems in the process of cost management in Chinese enterprises,which is undoubtedly a great challenge to the realization of the business objectives of Chinese enterprises.Therefore,scientific analysis of enterprise cost management is a very important way to provide an effective theoretical support for cost management.At present,the research and diagnosis of cost management at home and abroad are limited to the theoretical stage,the perspective of research is not perfect,and it is difficult to combine with the business practice of enterprises.Strategic cost management is an important tool for enterprises to make financial diagnosis.At present,there are few related studies on strategic cost diagnosis.Because of the lack of scientific and effective system to guide the practice of strategic cost management,the actual effect of strategic cost diagnosis is not ideal.Based on the existing research results of strategic cost management,this paper takes AMK Electrical Appliances Company as an example to analyze the problems and causes of strategic cost management in AMK Electrical Appliances Company,and put forward relative countermeasures,which has certain theoretical and practical significance for improving the diagnosis theory and system of strategic cost management in enterprises.