Research On Cost Control Of A Steel Company Based On Value Chain Perspective

Since the development of the steel industry,it has always been the pillar of China’s national economy,and has made great contributions to China’s national defense construction and social development.The steel industry has entered a recovery stage from the previous cold winter,but there are still problems such as overcapacity,low industrial concentration,uneven regional distribution and environmental quality,and it is urgent to solve these problems.In the long run,if steel companies want to survive stably in the fierce market competition,they must control themselves more strictly,examine their own problems,and improve their problems.Among them,the key factor affecting competition is all the costs incurred in the company’s operation.With the rise of blockchain,cloud computing and other technologies,the company’s cost control model can no longer keep up with the pace of the company’s development,so it can improve the traditional cost control model,use the value chain cost control model to effectively control costs,improve the company’s efficiency,and then have an advantage in the market competition.This paper takes A Steel Company as an example,and after collecting and reviewing domestic and foreign literature and enterprise cases,a plan is designed for the company.Firstly,the research background and research purpose are introduced,why the value chain cost control model should be applied to A Iron and Steel Company,and the theoretical articles of domestic and foreign scholars are summarized and explained,and then the company’s overview and the development of the steel industry are introduced,and the current situation of cost control in each link of the company such as R&D,procurement,production,and sales is analyzed,and the shortcomings are found,and the feasibility and necessity of using the value chain cost control model are introduced.Secondly,based on the perspective of value chain,the cost control scheme of A steel company is constructed.In view of its internal value chain cost control,the value-added or non-value-added operations of each link are evaluated by the operation cost value coefficient method,and improvement measures are proposed for the non-value-added operation links.In view of its external value chain cost control,the entropy weight method is used to select the best supplier for the company,the customer profitability matrix classifies customers so that the company can better provide products and services for corresponding types of customers,collects their information from competitors and adopts the benchmarking comparative learning method for comparative research and learning,and establishes horizontal strategic alliances.Finally,safeguard measures are proposed for the smooth implementation of value chain cost control.Through theory and research,it is shown that A steel company uses the value chain cost control mode to control its costs and build an effective cost reduction method,which can make the company have more competitive advantages and long-term development in the market.At the same time,this paper hopes to provide reference for other steel companies in the value chain cost control model.