The Research on Application Problems of the Value Chain in Enterprise’ Cost Management
Abstract
The globalization of economy and the rapid development of science and technology cause a profound effect on the internal management of enterprise, and change the enterprises’ management concepts and methods fundamentally. The cost management based on the value chain analysis has become the focus of theoretical and practical circles. The cost management strategy bases on the analysis of value chain is the decision-making tool of cost management analysis, which helps enterprises to explore the real source of competitive advantage and enhance their overall concept. Starting with the relevant knowledge of value chain, it claims that cost management should consider the whole formation process of product value, not only concerned about manufacturing process, but also consider the development of design, after-sales service and other sectors, it is necessary to attach importance to upstream suppliers and contacts, but also attaches importance to and downstream distributors, customers link, and it is necessary to consider the development of design, materials procurement, manufacturing, sales and use part of its cost control. Through the analysis of enterprises’ social, internal , external competitors’ value chain, it makes acquaintance of application of the value chain in helping to improve enterprises’ long-term competitive advantage and presents the optimized concept of measures to analyze the cost drivers of enterprise and handle the relationship between the value chain, combined with the defects of value chain’s application in the cost management process, such as the erroneous understanding cost drivers and the only concern of the costs in production activities.
