Study On Value Chain Strategic Cost Management Of Baosteel

With the steady economic recovery over time,China’s industrial economy has also overcome such adverse factors as the multi-point spread of covid-19,the tightening supply of factors of production,and persistently high commodity prices,and generally maintained a recovery in growth,the industrial value-added of enterprises above the national scale is higher than the economic growth rate in the same period.At the same time,the steel industry market demand is strong,driving the rapid growth of crude steel consumption,steel industry benefits to the best level in history,to achieve a good start to the" 14th five-year plan".However,there are still some complicated risks and challenges in the steel industry,such as "Double limit" of production capacity,"Double control" of energy consumption and sharp market fluctuation.Therefore,taking into account both cost management and factor distribution is of great significance to the sustainable development of iron and steel enterprises.The traditional cost management often only pays attention to compressing the internal cost of the enterprise,has the mechanical question,neglects the external environment influence,lacks the entire profession global macroscopic angle of view exploration,but the strategic cost management stands in the strategic height,the enterprise internal situation with the industry situation and the competition situation organic combination,provides the new mentality for the enterprise cost management with the overall perspective.In order to upgrade and improve the efficiency of iron and steel enterprises and achieve a smooth transition in the post-epidemic era,it is necessary to recognize the importance of strategic cost management in the value chain of iron and steel enterprises.In the research of Baosteel stock value chain strategic cost management,the methods of literature analysis,case analysis and quantitative and qualitative analysis are used,which combine the value thought of value chain with the theory of strategic cost management,from the perspective of value chain,this paper decomposes the value chain of Baosteel stock from the three directions of internal value chain,industry value chain and competitor value chain,and performs the strategic positioning of Baosteel stock,this paper analyzes the status of strategic cost management of Baosteel,analyzes the factors influencing the successful implementation of value chain strategic cost management,and at the same time summarizes the implementation effect of strategic cost management,found that the current value activities exist,directly or indirectly affect the cost control of the problem,put forward to further optimize the various value links of the measures,with a view to Baosteel shares can better achieve the cost reduction and green development of the strategic objectives,the realization of value-added enterprises.In addition,the research on strategic cost management of Baosteel’s stock value chain will also provide some reference for other steel enterprises in the same industry.