Research On Strategic Cost Management Of Thar Coalfield Block 1 Power Generation Co.,Ltd.

Electric power is the basic industry of the national economy and the people’s livelihood,is the important material basis and guarantee for economic and social development,and is related to the overall economic and social development.In the composition of China’s power industry,thermal power generation accounts for the largest proportion.With the deepening of the reform of the national power system,the increasingly fierce competition in the power market and the increasingly stringent requirements for energy conservation,emission reduction and environmental protection,the development of thermal power generation enterprises is facing multiple pressures.The intensification of competition among enterprises in the same industry and the operation mechanism of "market coal and planned electricity" have led to the serious squeeze of the power generation cost space of thermal power enterprises,and the poor cost management control.The development of thermal power enterprises will face serious difficulties.In the face of increasingly fierce market competition,it is more urgent and important for thermal power enterprises to optimize cost management,seize cost advantage and gain competitive advantage.Strategic cost management is an improvement of traditional cost management.The application of strategic cost management can significantly improve the cost control level of enterprises,help enterprises achieve cost leadership,form cost advantages,and then obtain long-term competitive advantages,and enhance the core competitiveness of enterprises.This paper selects Thar Coalfield Block 1 Power Generation Co.,Ltd.as the research object for case study.By combining theoretical analysis with practical investigation,the current cost management mode of Thar Coalfield Block 1 Power Generation Co.,Ltd.was first investigated and analyzed in depth,and the main problems and causes of the cost management of Thar Coalfield Block 1 Power Generation Co.,Ltd.were explored.For the developing thermal power generation enterprises,the traditional cost management mode was relatively extensive and the management method lagged behind,For the developing thermal power enterprises,they can not timely reflect the problems exposed in the enterprise and its value chain:the concept of cost management is more traditional,the fixed cost control is relatively weak,the analysis of the enterprise value chain is single,and the atmosphere of total cost management needs to be strengthened.Then use the strategic cost management theory to analyze the strategic positioning,value chain and cost drivers of Thar Coalfield Block 1 Power Generation Co.,Ltd.Based on the previous research and analysis,relevant countermeasures and suggestions for implementing strategic cost management of Thar Coalfield Block 1 Power Generation Co.,Ltd.are put forward.Finally,the research conclusion is summarized and the future is prospected.This paper believes that the strategic cost management analysis method can find out many key factors that affect enterprise cost management;The implementation of strategic cost management in thermal power generation enterprises can help them form cost advantages,improve core competitiveness and maintain long-term competitive advantages.At the same time,through the comprehensive and in-depth implementation of the enterprise’s cost management culture,we can mobilize the enthusiasm of all staff to carry out cost management,reduce the cost of the enterprise more efficiently,and improve the economic benefits of Thar Coalfield Block 1 Power Generation Co.,Ltd.When applying strategic cost management,enterprises should pay attention to transforming and integrating it with the existing cost management mode,and use strategic cost management to improve their core competitiveness faster.