HWZ Company’s Cost Management Research Based On Value Chain Analysis

In order to adapt to the changes of market economic environment and gain competitive advantage in the increasingly fierce competition,the enterprise management mode also needs corresponding improvement and innovation,one of the most important aspects is the innovation of cost management mode.Domestic and foreign scholars’ research on the theory of value chain can bring a new management idea for the cost management of enterprises.Through the overall analysis of the company’s production and operation activities from the perspective of value chain,enterprises can manage and control the cost from the overall situation of production and operation,and promote the improvement of cost management methods and the improvement of cost management efficiency.This paper reviews the relevant theories and case studies of domestic and foreign scholars on value chain,cost management and value chain cost management,and summarizes the content and characteristics of value chain,cost management and value chain cost management of real estate enterprises according to the characteristics of the real estate industry.Taking HWZ company as the research object,this paper analyzes the cost management system of HWZ company from the three aspects of organizational structure,cost management process and cost management method,and takes the actual situation of X project of HWZ company as an example to analyze the cost status of X project of HWZ company.It is found that in the three types of costs of X project of HWZ company,the direct cost accounts for the highest proportion,the period cost takes the second place,and the period cost takes the second place In the direct cost,the construction and installation cost is the highest,followed by the initial cost;in the period cost,the sales cost is the highest;through the comparative analysis of the actual cost and the planned cost,it is found that the construction and installation cost,the initial cost and the sales cost are all over expenditure.In the current cost management system,HWZ company does not set up a special department to be responsible for cost management,the cost management process is simple,and it adopts a variety of cost management methods with obvious limitations.On this basis,it points out that there are some problems in HWZ company’s current cost management,such as backward cost management methods,narrow cost management scope,incomplete cost management system and so on,and puts forward the necessity of using value chain for cost management.Combined with the theory of value chain cost management and the actual situation of HWZ company,the internal value chain and external value chain activities are identified,the cost of X project is re classified according to the value chain activities,the value chain cost of X project is statistically analyzed,and the cost driver is analyzed according to the situation of HWZ company In the external horizontal value chain cost,HWZ company’s X project has no competitive advantage in terms of market scale and cost compared with its competitors.Compared with the industry benchmarking analysis,HWZ company’s auxiliary activities need to be further strengthened,so as to effectively reduce the cost of basic activities and form a competitive advantage In the external vertical value chain cost,upstream suppliers and downstream sellers and customers are relatively dispersed,resulting in higher actual supply cost and sales cost.Based on the statistical analysis and cost driver analysis of the value chain cost of HWZ company,this paper puts forward the optimization scheme of the value chain cost management from the perspective of the cost benefits generated by the internal and external value chain activities,and puts forward the safeguard measures of strengthening the value chain cost management consciousness,introducing the enterprise resource planning management system,and combining with the internal control,so as to improve the comprehensive efficiency of the company Management level,the formation of cost competitive advantage of the expected optimization effect.