Research On Strategic Cost Management Of S Foreign Funded Company

The economic globalization has intensified the competition among various relevant markets in various countries in the world.China’s market full of opportunities has attracted the attention of a large number of foreign funded enterprises.In recent years,with the gradual cancellation of preferential policies for foreign-funded enterprises,the continuous tightening of chemical companies from safety supervision and environmental protection policies,and the rapid rise in labor costs,foreign-funded chemical companies are facing a sharp rise in the cost and increasing competition in the marketing at the same time.At this time,the strategic cost management based on the value chain can help companies obtain cost advantages through the integration and optimization of the company’s value chain and the synergy of internal and external links.This paper is based on a European S foreign funded company.Firstly,this paper use the literature research method.After studying a large number of domestic and foreign literature on value chain and strategic cost management,the strategic cost management of the value chain is in favor of improving and reinforcing the enterprise operation management.It is suitable for the needs of sustainable development of the enterprises.After collating the existing literature research on value chain and strategic cost management,the corresponding documents are reviewed to provide a theoretical basis for the case study of this article.Then,this paper use case research method.Firstly,it introduces the basic situation of the company,the general situation of the industry and the status quo of the company’s strategic cost management,and then analyzes the difficulties faced by the S company and causes.The strategy of S company and the characteristics of strategic cost management of foreign companies are analyzed.Immediately,this paper proposes how to construct a value chain strategic cost management model from the internal value chain,the vertical perspective of the external value chain and the horizontal perspective of the external value chain.Finally,proposes the establishment of a guarantee mechanism for the strategic cost management of the value chain from four aspects.The conclusions are drawn from the above research:(1)Foreign-funded companies need to clarify their own functions within the group,conduct a comprehensive review of the host country’s macroeconomic policies and market environment,and closely follow the host country’s new strategic investment hotspots.On the basis of the above,the strategic cost management can be improved.(2)Constructing a value chain strategic cost management oriented by "customer needs" can comprehensively enhance the core competitiveness of an enterprise and realize its sustainable and long-term development.(3)Analyzing the customer value chain will help to reversely find the value-added links in the enterprise value chain,and improve and optimize the enterprise value chain.(4)At the same time of the construction of value chain strategic cost management,it is necessary to establish a matching guarantee mechanism to ensure its smooth implementation.This paper provides a feasible implementation path for S company strategic cost management.At the same time,it also provides a theoretical and ideological supplement for other similar enterprises to build strategic cost management.