Strategic Cost Management And Application Of ZH Construction Company

For a long time,the rapid development of the construction field has made great contributions to the development of our society.However,with the continuous development of economy,the defects of cost control in the construction field are becoming more and more obvious due to the wide business scope and personnel turnover,such as the continuous reduction of profit space and the gradual increase of construction costs.For a construction project,its cost management runs through the main links of r&d design,material purchase and on-site construction.It also includes many details such as bidding management,investment decision-making,quality supervision,personnel allocation,etc.Any process is wrong,it will affect the final cost accounting.Although ZH construction company is a large construction enterprise in China with first-class construction qualifications,its cost management system is relatively traditional and lacks strategic positioning.If it is not rectified,it will face the risk of being eliminated.Therefore,introduce the strategic cost management into the cost management system of ZH construction company,which can improve the company’s competitive position in the market and has great strategic significance for its future cost planning.In this paper,on the basis of in-depth analysis of a large number of predecessors’ research results,with ZH construction company as the research object,with its current cost management system as the breakthrough point,after clarifying the defects of all cost control,the logic analysis of strategic cost management was carried out,finally,the paper puts forward the countermeasures to implement the strategic cost management of ZH construction company.Firstly,the theory of strategic cost management is explained in detail,including its concept,features,principles,methods and basic models.Secondly,it analyzes the company profile,cost management process and measures of ZH construction company,and the existing problems of cost management.Furthermore,the ZH construction company is logically divided into value chain analysis,strategic positioning analysis and cost driver analysis to identify the driving factors of cost.Finally,this paper points out the countermeasures and suggestions of ZH construction company’s strategic cost management,which are mainly divided into three aspects.First,strategic positioning.On the premise of clear strategic positioning,implement differentiation strategy.Second,realize the optimization of value chain.The value chain integration and optimization of ZH construction company was carried out from three angles of internal value chain,horizontal value chain and vertical value chain.Optimize the cost drivers of the internal value chain and focus on monitoring the labor and material costs of on-site construction.Learn from advanced enterprises in the same industry,make reasonable use of their own advantages,complement each other’s advantages,promote mutual benefit and common development.Establish long-term strategic cooperation with upstream material suppliers and streamline downstream sales chain.At the same time,the internal value chain,the horizontal value chain and the vertical value chain should be strengthened and interrelated with each other.Third,cost driver control.Manage economies of scale and accelerate enterprise integration;Encourage scientific and technological innovation and keep up with the standard enterprises.Coordinate internal relations and supervise the quality.Increase employee’s sense of belonging and improve productivity utilization.In this article,through analyzing the current situation of cost management of ZH construction company,combined with the existing problems,and further,has carried on the analysis and application research on strategic cost management,and plan the feasibility of implementing suggestions for the company to implement strategic cost management,in order to strengthen cost control,and enhance the core competitive position of ZH construction company.