Research On Strategic Cost Management Of Robam Appliances Co,Ltd

In recent years,China’s economic development has undergone a new shift from speed to quality,and a new industrial pattern is taking shape.The kitchen appliance industry is under multiple pressures from rising raw material prices,fluctuations in the real estate market and increased market competition.At the same time,in the first half of 2020,the new crown virus epidemic caused a serious impact on the national economy and productivity,the production and operation of enterprises and residents’ consumption levels fell seriously,the development of the kitchen appliance industry was sluggish,and the overall trend was a substantial decline.Against this backdrop,enterprises must establish cost management systems that are aligned with their strategies to seek and maintain a lasting competitive advantage if they are to outperform the competition.Traditional cost management methods emphasise on strengthening internal management and often ignore changes in the environment and consumer trends,resulting in business results that differ from the strategic objectives set by the company.Strategic cost management identifies cost drivers from a strategic perspective,extends the scope of cost management to R&D,procurement,production and sales and other value chain links,analyses cost information in the whole process,guides enterprises to adapt to the macro environment and control the micro environment,improves cost management,enhances economic efficiency,and achieves and maintains long-term competitive advantages,which is an This is an adaptive change in traditional cost management in response to changes in the market environment.This paper selects one of the leading enterprises in China’s kitchen appliance industry with the longest history of development,the highest market share and the largest production scale-Robam Appliances Co,Ltd,as the vehicle for this paper to study the application of strategic cost management.Through strategic positioning analysis,value chain analysis and cost motivation analysis,we study the application of strategic cost management in Robam Appliances Co,Ltd.This paper firstly compares and reviews the domestic and international research results on strategic cost management,and introduces the concept,characteristics,objectives and analysis methods of strategic cost management.Then,this paper analyses the current situation of strategic cost management of Robam Appliances Co,Ltd by using three strategic cost management tools,namely strategic positioning analysis,value chain analysis and cost driver analysis,in conjunction with the business results and financial data of Robam Appliances Co,Ltd in recent years.To address the problems of insufficient R&D capability,lax quality control,high selling expenses,the influence of raw material procurement on cost management and insufficient management of accounts receivable,this paper applies strategic cost management theories and methods to put forward improvement suggestions,such as improving R&D capability,strictly controlling product quality,strengthening selling expenses management and strictly controlling raw material procurement,in order to help Robam Appliances optimise its existing strategic cost.The recommendations were made to help optimize the existing strategic cost management system and enhance its competitive advantages.