Research On Cost Management Of RX Chinese Medicine Enterprise Based On Value Chain

With the rapid development of Internet economy,the competition environment of Chinese medicine enterprises developed new features.Although the standardized management of medicine enterprises promotes the development of related industries,present medicine enterprises are commonly faced with unreasonable import structure and high cost.Meanwhile,because of the similarity of product’s functions,Chinese medicine enterprises have to increase cost for research and development,which leads to more intense competition between industries.Therefore,reinforcing the management of cost is very important to Chinese medicine enterprises.Limitation of traditional cost management method makes it hard for enterprise to earn high profits.Therefore,this thesis tried to explore cost management of Chinese medicine enterprises from the perspective of value chain.The difference between value chain cost management and traditional cost management is that from the perspective of value chain,cost management includes resource consumption of every link of value chain.This thesis began with theoretical study,which was to have a deep exploration of value chain cost management referring to the actual condition of cost management in RX Chinese medicine enterprise.First,based on the domestic and foreign literature review,the thesis introduced related theories of value chain cost management,then combined with the features of Chinese medicine enterprises,the cost structure and the current condition of cost management in RX Chinese medicine enterprise,identified the existing problems of cost management in RX Chinese medicine enterprise.Second,this thesis analyzed the strategic orientation and strategic motivation of cost with the use of the Michael Porter’s Five Forces Model,and also analyzed value chain activity of RX Chinese medicine enterprise based on value chain theory.As for interior value chain activity,this thesis used cost value coefficient method to locate the value-added part and the non-value-added part of the interior value chain,and then analyzed them;as for the vertical value chain,this thesis used analytic hierarchy process to identify the best upstream vendors,and picked out the best customers by analyzing the pay off matrix of customers;as for the horizontal value chain,this thesis compared and analyzed the difference from benchmarking enterprises,found out the weaknesses and improved them.Last,in order to fundamentally lower the cost of enterprises,and ensure the effective implementation of the cost management method of the value chain,the application measures are proposed from the internal value chain and external value chain,and the implementation guarantee is proposed from the four aspects of organization,system,information technology and early warning,so as to further enhance the market competitiveness of the enterprise and promote the sustainable development of RX Chinese medicine enterprise.