Research On Strategic Cost Management Of HN Power Generation Company

With the continuous adjustment of China’s industrial structure and the farther deepening of the power system reform,the competition of China’s power generation companies is becoming more and more fierce.It is imperative to seek and maintain advantages in the fierce energy market competition environment.In addition,With the increase of coal cost and the implementation of new energy concept in China,the survival and development of power companies,especially coal-fired power generation companies,are faced with severe challenges.As a key factor determining the competitiveness of companies,cost is directly related to whether companies can obtain long-term competitive advantages.However,in the current fierce competition in the power market,traditional cost management can no longer meet the development needs of companies.In order to obtain a sustainable competitive advantage and lay the foundation for the future development of the company,it is necessary to introduce new cost management concepts and management methods.In recent years,strategic cost management has gradually become one of the main ways for companies to seek long-term development.It is based on the long-term development of companies,cultivating the core competitiveness of companies,and maintaining competitive advantages.This paper first reviews the research status of strategic cost management at home and abroad,and puts forward the necessity and emphasis of the research this paper.Secondly,it describes the meaning of strategic cost,the connotation,characteristics,main mode and basic framework of strategic cost management,which provides a theoretical basis for the research.Thirdly,this paper takes HN power generation company as the research object,analyzes its development overview,operation management and cost management status,and explores the cost management problems of HN power generation company,thus deducing the necessity and urgency of implementing strategic cost management for HN power generation company.Fourthly,establish and analyze HN power generation company strategic cost management framework.Through strategic positioning analysis,HN power generation company’s advantages and disadvantages,opportunities and threats are defined,and cost management strategies that are conducive to the creation and maintenance of competitive advantages are determined.Through the understanding of company internal value chain analysis,industry and the competition value activities,determine the HN power generation company to create real value of the business activities mainly include coal cost management,research and development cost management,value chain management of suppliers,competitors value chain management,prompting companies focus on value-added activities to reduce costs;Through strategic cost drivers to analyze the explicit cost and hidden cost of HN power generation company from a strategic perspective,the key drivers for determining company cost mainly include the degree of business integration,experience learning,technology,employee participation,capacity utilization,and value chain connection,thus coordinating with cost management strategies.Controlling or improving cost drivers allows HN power generation company to have cost advantages over competitors.Finally the paper puts forward the implementation strategy of HN power generation company strategic cost management,including implementing power structure differentiation strategy,implementing target agglomeration strategy in new energy power generation,improving internal value chain management,improving industry value chain linkage,strengthening the competition value chain link,Ensuring the efficiency of resource utilization and Strengthen the construction of enterprise culture to enhance the awareness of enterprise strategic cost managementThe innovation of this article is mainly from a strategic perspective,combined with the particularity of HN power generation company in the power industry,from the strategic positioning,value chain,strategic cost drivers to establish a standardized HN power generation company strategic cost management basic framework to encourage HN power generation company to keep competitive advantage,maintain the market competition status.