New Energy Power Battery Materials Company Based On Shank Model Study On Strategic Cost Management

The power battery materials industry is an important part of the new energy industry chain and is of strategic importance to China’s energy transition and environmental protection.In recent years,the industry has been affected by declining financial subsidies and intensifying competition,while also facing severe challenges such as large fluctuations in raw material prices and rapid expansion of enterprise scale,which have put forward higher requirements on the cost management level of relevant enterprises.This paper adopts the Shank model theory to help power battery material enterprise A improve its value chain and reduce comprehensive costs.The literature research method,case study method and comparative analysis method are used.Supported by the theoretical framework,the current situation of strategic cost management and its problems,information on the business environment,financial situation,manufacturing process and process characteristics,as well as the internal and external value chain of power battery material manufacturer A is analysed,and its main cost drivers are identified,and the direction of cost reduction is then explored.The study concludes with countermeasures and recommendations on strategic cost management,which include adjusting the strategic layout of the raw material supply side and manufacturing side,optimising the organisational structure of cost management,decomposing and implementing cost management responsibilities and implementing whole life cycle cost management of products.This paper finds that power battery material enterprises are in a disadvantaged position in the value chain and need to closely integrate cost management with practical operation and management accounting knowledge,and use strategic cost management theories and methods to comprehensively and deeply analyse and optimise cost management organisation,system construction,incentives,talent management and process management in order to gain advantages and achieve sustainable development in the fierce market competition.This paper innovatively studies the application of the Shank model strategic cost management theory in a new energy power battery material company,aiming to improve the cost advantage and core competitiveness of Company A and provide reference for similar companies.