Research On Cost Management Of V Company Based On Value Chain

Since the 21st century,there is more and more competition all over the world with the economic integration.In order to gain limited market share,various enterprises have been involved in price war actively or passively.So,how to calmly cope with this pressure,especially small manufacturing businesses?And how to still obtain expected profits and ensure the sustained,healthy development?In the long run,the important way that helps enterprises to get out of the "trouble" is to change the traditional cost management mode into the modern cost management mode guided by the value chain theory.Hoping the company can obtain or maintain the cost leadership through the optimization of the whole value chain.First of all,using the fruits of scholars abroad and inside for reference,this paper describes the cost management theory,value chain theory and target costing and so on,and makes in-depth study and related analysis to obtain the theoretical basis of cost management research based on value chain.Second,based on above-mentioned study,this paper takes V Company as the research object,and then analyzes a range data in cost management based on company's basic status,industry characteristics,risk and the financial conditions.Through research and analysis,it is found that V Company has lots of internal problems and control risks,such as narrow cost scope of control?ineffective means to supervise?the low profit etc.Finally,this paper puts forward the improvement measures for V Company's cost management in full value chain and whole process by the means of value chain and target cost method.It aims to make up the shortcomings of cost control,turn to the management content and the influence of operating profit weakness,improve the cost management level,gain the cost advantage,improve cost efficiency,and enhance the continuous competitive advantage.In short,this paper hopes to take the case study of V Company as a breakthrough and provide some constructive optimization measures for other small manufacturing companies to establish and optimize a scientific cost management system based on value chain.