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The Analysis and Application of Strategic Cost Management in L Company

Author: XuQinChao
Tutor: XueYuHua
School: Suzhou University
Course: Business Administration
Keywords: Strategic Cost Management Strategic cost analysis implementation and application
CLC: F275.3
Type: Master's thesis
Year: 2011
Downloads: 193
Quote: 0
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Abstract


In order to survive in current global and rapid developed economic environment and strive for higher market share, a company needs to face more complicated competition and stronger competitors. Cost is not only one of the factors affected one company’s revenue, but also an important issue for company competitive power and potential ability of development. Strategic Cost Management is the very tool to enhance company competitive power, which starts from company’s strategy and develop company’s long term competitive advantage to make the company successful in current fierce competition. This article tries to study the theory of Strategic Cost Management and analyze how L Company implements Strategic Cost Management method into its routine management to enhance its competitive power.This article first introduces the target, elements and models of Strategic Cost Management. Then it separately narrates value chain analysis, cost driving analysis and strategic positioning analysis, three strategic cost management methods. The next part of this article makes an analysis of current cost management status of L Company and its existing problems by using Strategic Cost Management related theory and analysis methods. It also provides some suggestions for L Company to implement Strategic Cost Management method for cost improvement and better development.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management > Enterprise Cost Management
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