Research On The Cost Of H Steel Company From The Perspective Of Supply-side Reform

An important part of the competitive advantage of an enterprise comes from the cost,which permeates all the business management of an enterprise.Reducing the cost has always been the eternal theme of an enterprise's survival and development.Iron and steel industry once became the pillar industry of national economy.However,with the increasing economic volume,low added value,high pollution and high energy consumption,the development of enterprises has become more and more fettered.As a result,enterprises have increased a lot of costs.It is almost impossible to use traditional cost reduction methods to control the production process of costs,so it can not provide complete and effective cost information for business decision makers Interest,high cost has also become the iron and steel enterprises have been suffering.In the new economic environment,the supply side reform is very important for iron and steel enterprises to reduce costs.China's economy has entered a new normal,and cost reduction should also be studied from a new perspective.The proposal of this supply side reform provides new ideas for enterprises to reduce costs.Not only that,through the form of reform,enterprises can achieve cost reduction.Supply side reform plays a leading role in the current policy system and economic work,so it is a big challenge for iron and steel enterprises to effectively reduce costs and complete the task of supply side reform.In the supply side reform,reducing cost is of research significance.First of all,China's economic development has entered a new normal.Because the economic environment has changed,the economic work in the new era will be based on the environmental change in the future,so we must find a new way to develop,and reduce the cost under the supply side reform.At this time,it is obviously a feasible and necessary new way.In addition,through further research,we find that most of the current literature research at home and abroad is focused on In terms of tasks such as capacity reduction and deleveraging,there is a lack of research on cost reduction in the context of supply side reform,so that enterprises with inadequate implementation of cost reduction tasks in supply side reform do not have corresponding reference materials.Therefore,it is necessary to study the cost issues in supply side reform.So,what are the problems encountered by those enterprises that have not effectively achieved the task of supply side reform and cost reduction?H iron and steel company is such an enterprise whose reform task is not ideal.The study of this company can provide reference for the enterprises whose cost reduction task is not achieved in the process of supply side reform.This paper consists of the following six parts:the first part is the introduction,which summarizes the research background and significance,the supply side reform at home and abroad,the current situation of cost management in iron and steel enterprises,and points out the innovation and research methods of this paper.The second part elaborates the connotation of cost reduction,resource endowment theory,effective supply demand theory and cost management theory in the context of supply side reform.The third part is a case study of H steel company under the supply side reform.First of all,it introduces the company's profile,then introduces the production process and organizational changes of the enterprise after the supply side reform,and finally focuses on the analysis of its cost status,mainly from the two aspects of H steel company's industry related cost status and main product cost.In the fourth part,by referring to the direction of cost reduction proposed in the work plan for reducing the cost of real economy enterprises,it is found that the labor cost,energy cost and logistics cost of the company have not been effectively reduced in the process of supply side reform,and the reasons for the difficulty of cost reduction are analyzed from the internal and external perspectives.The fifth part of the supply side reform of H iron and steel company to reduce costs put forward countermeasures and suggestions.First,according to their own understanding of the supply side reform to reduce costs,this paper puts forward two new ideas for the steel enterprises to achieve cost reduction under the supply side reform,and then puts forward specific cost reduction countermeasures for the problems analyzed in the previous paper.The sixth part summarizes the research conclusion and Prospect of this paper.The conclusion of this paper is as follows:firstly,H steel company focuses on the salary and raw materials to reduce the cost.Secondly,to reduce costs,the government and H steel company need to work together.Finally,H steel company should balance supply and demand in response to supply side reform.The innovation of this paper lies in:firstly,it combines the current political and economic background.The report of the 19th National Congress of the Communist Party of China puts forward that "deepening the supply side structural reform" is the primary task of building a modern economic system.This paper takes the supply side reform as the starting point to reduce costs.In the current economic environment,as one of the five major tasks of reform,it is necessary to mention the supply side reform when it comes to reducing costs.This paper uses the method of case study in combination with the current Chinese economy Economic situation and economic policy,the choice of H iron and steel company for research,the topic has a certain practical significance and practical significance.Secondly,by analyzing the shortcomings of traditional cost management methods,this paper puts forward a new way to reduce costs,that is,to reduce costs together inside and outside the enterprise,guided by the long-term supply and demand of the market.