Research On Cost Management Of JZ Company Based On Value Chain Analysis

With the deepening of the marketization of the pharmaceutical industry,the internal market competition is becoming increasingly fierce.In order to maintain the competitiveness of pharmaceutical enterprises,effective cost management is of course essential.Based on this,this paper selected JZ company,a large state-owned pharmaceutical enterprise,as the research object,and made a detailed analysis of the cost management of JZ company based on the theory of value chain cost management.Choose JZ company as the research object is because JZ company established as a nearly sixty years old pharmaceutical enterprise,is in should take cost management method is the key stage of innovation,and JZ company pharmaceutical production,research and development,sales in one,its internal procurement,production,research and development,sales link is relatively complete,the basic value chain analysis can be done about it covered the whole composition range of the value chain.This paper mainly studies from the following aspects: firstly,it introduces the research background and significance,and summarizes the relevant theories of value chain and value chain cost management on the basis of literature review;Then it briefly introduces the current situation of JZ company and its cost management,and analyzes the existing problems in the cost management of JZ company;Then it analyzes the controllable points of its cost management from the three aspects of JZ company's internal value chain,vertical value chain and horizontal value chain.After a full analysis of JZ company,the author found that at the level of JZ company's internal value chain,all the components have problems,large or small,especially in the expenditure of production costs and product research and development,JZ company has a lot of cost management space;In the aspect of vertical value chain,JZ company still needs to improve its relationship with upstream suppliers and downstream customers,and has great deficiencies in the stable supply of raw materials and advertising.In terms of horizontal value chain,by comparing with the competitors of JZ company,the authorfinds that JZ company is not superior to its competitors in terms of r&d investment,sales efficiency and raw material procurement efficiency.In order to win market share,JZ company should make more efforts in these aspects.Finally,for these problems found,the author from the perspective of the value chain,give targeted improvement Suggestions.