Foxconn Strategic Cost Management Case Study

As consumer demand becomes more diverse and industry competition intensifies,and cost-management companies become more important in the face of technological innovation pressures,rising materials and labor costs.As a result,the concept of strategic cost management emerges as the times require.This management method integrates economics,operations,and systems into one.It examines cost management in the future development of the company,raises cost management to a higher level,and links with the entire strategy of the enterprise.Together,it is more comprehensive and comprehensive than traditional cost control management.It is an advanced management tool and is gradually being developed and applied.This paper selects Foxconn Technology Group(hereinafter referred to as Foxconn),a typical large-scale electronic intelligent manufacturing enterprise in China,as the carrier of this paper to study the application of strategic cost management.Through strategic positioning analysis,value chain analysis and cost driver analysis,the strategic cost management is studied.The application situation in Foxconn.After the research of this paper,it is found that Foxconn does not use the value-added point that contributes the most to create value in the value chain.It does not create its own brand,the customer is too concentrated,and it is difficult to maintain the low-cost competitive advantage in the competitive environment with low industry barriers.The status in the industrial value chain is gradually declining;Foxconn's strategic structural cost management mainly cannot quickly become a high-tech enterprise in the short term,the industrial location cost advantage gradually disappears,the economies of scale have been fully utilized,and the services provided by Foxconn and The products have not fully satisfied the customer's problems in terms of diversity;Foxconn's strategic execution cost management mainly includes the problems that scientific management needs to be strengthened,the value activities are too tightly combined with a single customer,and the production operation mode lacks flexibility.After studying the strategic cost management of Foxconn,this paper proposes an optimization plan to solve the problem.In summary,this paper provides an in-depth analysis of Foxconn's financialstatements,technical data and management data,and combines the actual application of Foxconn's strategic cost management to provide advice for Foxconn to better implement strategic cost management,and also accumulated cases for large sample research.The sample,at the same time,must also provide reference for the same industry.