Research On The Cost Control Of Dairy Enterprises In China From The Perspective Of Reform

In recent years,China's economic development has entered a new normal,with a medium-high growth rate on the whole.However,the improvement of the growth rate has broken the balance between market supply and demand,and the structural contradiction has become increasingly prominent.In order to cope with the supply problems arising from economic development,President Xi Jinping put forward the concept of supply-side structural reform in November 2015,aiming to balance the relationship between supply and demand and correct the structural mismatch between supply and demand.Although the government has introduced relevant policies to help reduce the cost of enterprises in the reform,for enterprises,how to control the cost and maximize the use of cost resources is the key to stand out in the market competition.Especially the current inflation is growing,the instability of the exchange rate fluctuations,the related legal policy change gradually increase gradually makes the production cost of Chinese enterprises,under the condition of the external environment is not optimistic,the cost of enterprise internal control is particularly important,effective cost control can even become the core competitiveness of enterprises.The dairy industry was selected as the research industry in this paper.As a strategic industry to promote the common development of the tertiary industry,Document NO.1 of the Central Government has repeatedly put forward the goal of comprehensively revitalizing the dairy industry.Among dairy enterprises,GM has always been the leader of domestic high-end dairy products,but in recent years due to strategic decisions and other issues,GM gradually fell behind and retreated to the second tier of domestic dairy enterprises.Based on the supply side of the structural reform background,this article selects the company as the research object of case study,analyzing the status quo of the GM company cost control,find out the company's cost control problems and put forward the corresponding solution measures,hope I can find other dairy companies,common problems and modified,in order to improve the state of our country dairy products enterprise cost control.Based on this,this paper analyzes the financial indicators and project quality of GM company and compares the average level of YL company and industry,and finds that the increasing gap in cost and expense ratio between the two enterprises directly or indirectly causes the gap in net profit between the two enterprises.Therefore,from the perspective of value chain analysis and cost driver analysis,this paper analyzesthe current situation of cost control in GM.Study found that in the value chain analysis method,the GM company is facing with imperfect connection mechanism between the upstream suppliers,cow breeding level cannot meet the standard,the packaging business monopoly by foreign industry and the problem of low bargaining power of the external value chain in the internal value chain,the company's current organizational structure may cause low operational efficiency,indirectly increase the enterprise operating costs;In the cost driver analysis method,the enterprise's scale,business scope,experience and technology and other structural factors need to be considered in the cost control of GM.Meanwhile,the executive cost factors such as employee engagement and quality management cannot be ignored.Finally,based on the cost control analysis of GM company,this paper puts forward relevant Suggestions on the cost control of dairy enterprises from the perspective of reform in terms of optimizing the manufacturing cost structure,carrying out information management,improving employee participation and increasing effective supply,so as to enable dairy enterprises to effectively carry out cost control under the background of reform.