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Neijiang Power Plant Strategic Cost Management

Author: ZhongHuaFu
Tutor: GuoBin
School: University of Electronic Science and Technology
Course: Business Administration
Keywords: strategic cost management strategic positioning value chain cost driver analysis
CLC: F426.61
Type: Master's thesis
Year: 2007
Downloads: 160
Quote: 0
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Abstract


With the changes of modern enterprises’circumstance, the idea, theory and method of cost management also change. Traditional cost management has been incapable of adapting the enterprise’s development demand. In order to obtain advantage position in the competition,the enterprise must change its manner of cost management, transfer the traditional passive cost management into initiative strategic cost management and perform the cost management and control predictively. In China, with the deepening of the electric power system reform, the electric power enterprise has participated in the competition of the electric power market and bidding for online is its inevitable choice. With other conditions in the same, the bidding price concerns electric power enterprise’s subsistence and development. Since the cost is the base of price and the cost advantage is the power enterprises’competition advantage, electric power enterprise must perform effective strategic cost management.This article applies the theory and method of strategic cost management to Neijiang generate power plant. The author first analyzes the external and internal environment of Neijiang generate power plant, then applies strategic positioning, value chain, and cost driver analysis to the analysis, finally get the conclusion: the emphases of its strategic cost management are coal, Labor costs, investment decision and the cost consciousness. At last, the author recommends that Neijiang generate power plant should make efforts to control fuel costs and staff wages and benefits expenses, attach importance to production processes and investment decisions, and strive to foster awareness of the cost of all staff. Only by this means, Neijiang generate power plant can improve its strategic cost management level, reduce its production and operation cost, capture the cost advantage, achieve the cost leading strategy and keep longtime advantage in the competition.

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