Research On The Application Of Strategic Cost Management In AJQ Company

With the rapid development of the global economy,the operating environment for enterprises is also undergoing many changes.Chinese manufacturing enterprises are facing new challenges such as transformation,upgrading and technological innovation.Especially in the food manufacturing industry,the small business is the majority,and the market competition is fierce.The survival and development of the enterprise depends on the ability to obtain the continuous competitive advantage.The traditional cost management method mainly emphasizes the internal management of the enterprise,which pursues the short-term profit maximization and ignores the changes in the external environment of the enterprise.But it lacks the strategic relevance,which can not meet the needs of sustainable development of the enterprise.If enterprises want to develop continuously and improve their long-term competitive advantages,they should take a strategic position and carry out strategic cost management from the perspective of the overall situation.Taking AJQ as the research object,this paper uses the value chain analysis,strategic positioning analysis,and strategic cost driver analysis tools of the Sunk model to put forward the implementation plan of strategic cost management to achieve the purpose of reducing costs and gaining long-term competitive advantages.Firstly,this paper combs the theory and research results of strategic cost management at home and abroad to provide theoretical basis for the study of strategic cost management.Through investigation and research,the management data,and the current cost management status of the company analysis,these problems are found: the cost management concept of the company is backward;the value chainmanagement is disjointed;the human resource cost control is not in place;the information technology support is lacking;the performance evaluation system is not perfect.Secondly,the value chain analysis tool is used to analyze the value chain,industry value chain and competitor value chain.In this paper,the writer will use the PEST analysis method to analyze the company's macro environment,use Porter's five forces model to analyze the industry environment,and analyze the company's internal environment from the advantages and disadvantages to provide the basis for the company's competition strategy selection.The strategic cost motivation analysis tool is used to analyze the structural cost driver analysis and the execution cost motivation analysis.Finally,this paper puts forward the implementation plan of AJQ's strategic cost management,which aims to establish the strategic cost management system and the internal and external value chain optimization,strengthen the cost driving factor control,and establish the balanced scorecard performance evaluation system.This paper also puts forward the corresponding safeguard measures.