Study On Strategic Cost Management Of JG Estate Company Based On Shank Mode

To curb the rise in housing prices,the Chinese government has insisted on implementing regulation and control policies in the real estate market,and the competition in the real estate industry has intensified.Under this environment,as a real estate development enterprise,it will only lead to a situation of quality declining,brand reputation declining,customer losing and the dilemma of enterprise development,if it relies on costs reducing as the only method of making profits and achieve development.Therefore,in order to achieve long-term development,enterprises must carry out a scientific planning,build a strategic cost management(SCM)system,and conduct effective costs management for the purpose of cultivating the unique core competitiveness of the enterprise.This paper studies the cost management of JG Real Estate during the real estate project to build a SCM system for JG.This paper first comprehensively describes the theoretical basis of strategic management and SCM,as the theoretical basis for JG Real Estate's SCM research.Then it introduces the basic situation of JG Real Estate Co.,Ltd.and the status quo of cost management.It also analyzes that there is a weak awareness of SCM in JG Real Estate Company's cost management,neglecting the pre-existing control of project development cost,and poor engineering control visa control during project development.After the completion of the development,there is no major problem such as the accumulation of cost experience data.Then,in view of the problems existing in the company's current cost management,the author uses the Shank model in the SCM theory as a framework to explore ways and means to solve the problem.The author uses the value chain analysis tool to analyze the feasible path of the company to reduce costs from the internal value chain,the industry value chain and the competitor value chain.The PEST model and the SWOT model are used to analyze the macro environment,subjective conditions and objectiveness of the company.Factors such as strategic positioning analysis,determine the company's competitive strategy;through cost driver analysis to explore cost impact factors.Finally,based on the analysis results,from the perspective of solving the problem,design JG Real Estate's SCM plan,construct the organizational structure ofSCM implementation,optimize the enterprise value chain and cost drivers,so that JG Real Estate can successfully achieve through SCM.The company has a competitive and sustainable development.