Optimization Study On Target Cost Management Of SG Company

With the development of modern science and technology,the variety of products has increased,and the differentiation of products has gradually decreased,which has directly led to more and more fierce market competition.Therefore,it is difficult to become a long-term competitiveness of enterprises through the pursuit of product differentiation and high quality through technological innovation.In modern enterprises,cost management has become an important way for enterprises to achieve high profits,and the cost advantage has gradually become a strategic advantage for enterprises,especially as Chinese enterprises gradually move toward the international market,and lower costs mean more profit margins under the premise of the same quality.So cost management is a strategy that companies need to adhere to for a long time.China is a big country in watch manufacturing,producing nearly 80% of the world's watch products,and also the country with the largest total demand for watches in the world,especially the demand for medium and high-end watches,but compared with the manufacturing powers like Switzerland.The products of watch companies are still at the bottom of the industry pyramid.High-end watches are almost monopolized by Switzerland and Japan.The price of middle and low-end watches is relatively low.Tianjin Seagull Watch Group has a long history and has made outstanding contributions to the development of China's watch industry.For the complex market environment,Seagull Company actively carried out cost management reforms and introduced target cost management methods to reduce enterprise cost and competitiveness.This paper selects Seagull Company as the research object,introduces the company's basic situation,industry status and cost management status,explains the necessity and importance of the company's cost management,and then focuses on the company's product target cost management process,and combines relevant theories find out the problems that arise in the management process,and propose optimization measures to improve the company's cost management.The optimization measures proposed in this paper not only have guiding significance for the cost management of Seagull Company,but also have reference significance for the current cost management model of large and medium-sized manufacturing enterprises in China.