Research On Strategic Cost Management Of Media Group

In 2018,the National Development and Reform Commission and other four departments issued the Notice on Key Work of Cost Reduction in 2018,requesting to ensure the completion of the target task set out in document No.48 of National Development [2016] to reduce the comprehensive cost of real economic enterprises reasonably and increase their profitability significantly in three years.Cost is an important factor affecting the level of profitability,competitive position and prospects for development.Cost reduction has become the focus of enterprises and the new normal of China's economic work.Since traditional cost management model no longer meet the development needs of enterprises,cost management must make adaptive changes to keep up with the development in the competitive environment.Strategic cost management combines the ideas of strategic management and cost management,which can help enterprises achieve strategic objectives and gain competitive advantages.As the leading enterprise in China's household appliances industry,Media Group has made certain achievements in strategic cost management.This paper studies the strategic cost management of Media Group.Firstly,this paper elaborates the research background,research significance,research methods and research ideas,and then summarizes and comments on the research of strategic cost management at home and abroad.Secondly,it introduces the concept,characteristics,analysis methods and basic steps of Strategic Cost Management,which lays a theoretical foundation for further analysis of strategic cost management of Media Group.Thirdly,it introduces the strategic objectives of Media Group and evaluates its cost management performance.Using PEST model and Porter's Five Forces Model,it then analyzes the strategic positioning of Media Group as well as the executive cost and structural cost motivation of Media Group from multiple aspects.It also analyses the value chain of Media Group from the perspectives of group itself,competitors and industry.Finally,some suggestions are proposed to optimize the strategic cost management of Media Group.The findings of this study are as follows:(1)Media Group needs to pay more attention to strategic cost management and should improve the current enterprise strategic cost management system.(2)Since strategic cost management requires full participation,the participation of all employees is an important guarantee for implementation of strategic cost management and a solid foundation for enterprises to achieve optimal costs and expand economic benefits.(3)When carrying out strategic cost management,enterprises need to find out the strategic orientation of enterprises,clarify the source of costs,refine costs,attach importance to hidden cost drivers,carry out more targeted control over various cost drivers,optimize and integrate the relationship between business processes.Only in this way can the total cost of enterprises be reduced and the competitive advantage of enterprises be maintained.Few case studies have been conducted on strategic cost management in China.Through the analysis of the strategic cost management of Media Group,this paper may be used as a reference for other enterprises to use strategic cost management and establish their own competitive advantages.