Study On Strategic Cost Management Of H Company Based On Value Chain

Under the dual pressure of rising raw material prices and foreign auto parts suppliers seizing domestic market share,the competition in the domestic auto parts market is intensifying,and mergers and acquisitions,split and restructuring have become the norm.In order to maintain the competitiveness in the fierce market competition,it is essential to carry out effective cost management.Strategic cost management through the enterprise strategic cost information collection,collation,analysis and use,to achieve the purpose of continuously reducing the operation cost of enterprises,improve the competitiveness of enterprises,thus becoming the modern automotive parts manufacturing enterprises to change the new method of cost management.Based on this,this paper selects H Company,an automobile parts manufacturing enterprise,as the research object,and uses the value chain analysis method to discuss the strategic cost management of H Company.This paper mainly carries out the research from the following aspects: First,on the basis of the relevant literature review,the value chain and strategic cost management related theories are introduced.Then,it briefly introduces H company and its strategic cost management status quo,and finds that although H company has the strategic cost management consciousness,it still lays emphasis on the micro cost management in the implementation.Then,using value chain analysis method,the specific situation of strategic cost management of H company’s internal value chain,vertical value chain and horizontal value chain is deeply analyzed.At the same time,in order to fully grasp the cost drivers of H company,the strategic cost drivers of H company are also analyzed.After analysis found that the H company’s internal value chain of strategic cost management practice,the company in human resources management section,material purchasing,production,research and development design steps in the management of manufacturing and marketing links,big or small the problem of the existence of these problems weaken the effect of H company strategic cost management;In the actual strategic cost management of H company’s vertical value chain,the company did not pay enough attention to the relationship construction with upstream suppliers and downstream customers,and did not get the maximum cost reduction from the vertical value chain management.In the actual strategic cost management of company H’s horizontal value chain,the company does not pay enough attention to the information of its competitors,especially the cost information,and there is still a certain gap between the company and its competitors in terms of their development ability.Finally,in order to further reduce the cost of H Company and maximize the comprehensive competitiveness of H Company,this paper proposes an optimization scheme for the problems of H Company found in the analysis process.