Research On Cost Management Of A Company From The Perspective Of Value Chain

Cost management plays an important role in the enterprise management system,because it is directly related to the survival and development of the enterprise.The profit of the enterprise is composed of revenue minus cost.Under the same profit level,a good cost control and management can bring more benefits to the enterprise.Therefore,enterprises must pay attention to the role of throttling on the basis of open source.China’s steel industry has long been the world’s largest production capacity,as an important industrial pillar of the country,the steel industry has a significant impact on China’s economic development.At present,China’s steel industry is facing many challenges and arduous tasks,such as energy conservation,emission reduction,overcapacity,structural imbalance and so on.With the increasingly intensified international competition,the market demand for value-added high-tech products is increasing.And with the rise of emerging technologies such as artificial intelligence data mining cloud computing block chain,the cost control of the steel industry has been put forward higher requirements.The traditional cost management mode pays more attention to the post-analysis of the cost,and the cost management based on the value chain analysis is a comprehensive dynamic analysis of the enterprise.By virtue of the theory of value chain cost management,this paper will analyze the current situation of operation and management of A iron and steel enterprise and the existing problems in cost management,investigate the internal and external value chain of A enterprise,and find the defects of its cost management.This paper takes company A,a typical company in the iron and steel industry,as an example.On the basis of fully studying the research results of value chain cost management at home and abroad,this paper uses field research to master the cost management process of the company.This paper first introduces the research background and the current situation of the steel industry,and then introduces the significance of writing this paper from the theoretical and practical perspectives.Through literature review,this paper reviews the achievements of value chain of domestic and foreign scholars.And the value chain activity-based costing and other related theories are explained.Then it introduces the production process cost accounting content and cost management status of A company.After that,the internal and external value chain analysis and cost driver analysis of enterprise A were carried out to find the problems and analyze their causes.Through analysis,the problems of A company’s internal value chain in the purchasing link,production link,logistics link and sales link are found.In the external value chain,at the vertical value chain level,company A is deficient in maintaining relationship with suppliers and customers;At the horizontal value chain level,through the comparative analysis of company A and its competitors,it is found that the company has the defect of less research investment and low degree of embedding in global value chain.Finally,from the perspective of the internal and external value chain,the optimization measures are put forward and suggestions on how to speed up the integration into the global value chain are put forward.In particular,in response to the emergence of international trade barriers in the United States,the company must have a clear understanding of the external value chain expansion must be combined with the national One Belt And One Road go global strategy,in order to remain invincible.At the same time in improving the logistics link of cost control,the innovative proposal to introduce block chain technology.It is hoped that the analysis of enterprise A can provide reference for other steel enterprises to optimize the value chain.