The Value Chain Analysis in Strategic Cost Management Applic

a selection of translation works of 2010 graduates of english department The Value Chain Analysis in Strategic Cost Management

Application

Translator：Dalian Translation and Interpretation College English College 07 English

and Japanese Bilingual Class 2 王政东 大连翻译职业学院教务处 阅读：446次 发布：2010-6-30 23:02:41

A traditional cost management analysis of the limitations

(1) cost management activities confined to the production costs. Traditional cost management to focus only on the production process in a variety of cost control, neglect of prenatal research and development costs, supply costs and post-natal marketing costs under control. Affected by this, to bring costs, most managers naturally think of the production, side by side manner that it will be limited to

production activities in the cost management costs.

（2) cost management is intended primarily for in-house production process. Traditional cost management is intended primarily for internal production process, while ignoring the supply and distribution business segments. For in the open,

competitive type of market environment in the enterprises, in the know ourselves and our circumstances, through an understanding of the entire industry value chain to conduct cost management more conducive to business strategy objectives. Traditional cost analysis is started from materials sourcing, which will lose the use of the

enterprise with suppliers (upstream) links the relationship between opportunities. In addition, the neglect of vendors (downstream) of the value chain so that enterprises difficult to obtain accurate information on product demand, increasing the cost of distribution costs and after-sales service to enable enterprises to reduce the cost of lost opportunities for backward integration.

2 Value Chain Analysis and Strategic Cost Management Thought

2.1 Value Chain Analysis of Production and content

Value chain theories in the 20th century, the 80s. The idea is by the United States Porter, Michael (Michael O E Porter) made in 1985, he believed that every

enterprise is in the design, production, sales, sending and supporting their products for a variety of production processes a collection of activities, all of these activities can be expressed as a value chain, value chain has three meanings: first, companies have close links among the various activities, such as the raw material supply planning, timeliness and coordination with the manufacturing enterprises are closely linked; second, each activity can bring to the enterprise value of tangible or intangible, such as after-sales service of this activity, if an enterprise needed to pay close attention to customer service or good, can improve the corporate reputation, to bring about the intangible value; Third, the value chain, including not only the chain within the

enterprise activities, and more importantly, but also outside the enterprise activities, such as relationships with suppliers, and customers and the relationship.

Value chain analysis thinking that each product from the initial raw material inputs to reach the final consumers hands, to go through numerous interrelated

operating procedures, which is the value chain. This job chain is both a product of the production process, but also a value formation and value-added processes, thereby creating a competitive strategic value chain. Operating characteristics of a variety of different, generally based on the industry value chain, the composition of cross

between related industries value chain. Any one of enterprises are located in a certain section of the industry value chain, companies also can be decomposed into multiple units within the value chain, each value chain, not only will have value, must also consume resources. A unit is a value chain to create value, the key is to see whether it provided the necessary follow-up the value chain unit, whether a follow-up the value chain to reduce unit costs, it can improve the quality of the follow-up the value chain unit. The value chain linkages in the value chain into a single unit to reduce the cost and the final cost of the important factors, but all aspects of the innovation value chain is a source of corporate competitive advantage.

2.2 The basic concept of strategic cost management

Strategic cost management is the enterprise in order to adapt to changing

economic environment, cost management, the introduction of strategic management, and to combine both the new management system and methods. In particular,

strategic cost management is an investment project, research and development and design, production and marketing chain all-round monitoring of the process, primarily from a strategic perspective to analyze the factors that affect cost, thus further found ways to reduce costs, The goal is to create a lasting competitive strategy of enterprises.

In the strategic cost management division of the content is divided into three

parts: First, strategic positioning, that is, how companies compete in the market to establish his dominance, it should be the first step in the strategic cost management. Second, value chain analysis, about corporate design, production, sales, production process of sending and supporting the various activities carried out systematically linked into chain aggregates, of which the value of flow analysis. Third, cost driver analysis, that is right cause or contribute to the cost driver analysis.

3 Value Chain Analysis

3.1 Industry Value Chain Analysis

Any business are in the industry value chain in one or more links. Industry value chain, companies can generally be divided into upstream firm (supplier), operating

companies and major competitors, and downstream companies (buyers) are three important links. Industry value chain analysis is to …… 此处隐藏：17780字，全部文档内容请下载后查看。喜欢就下载吧 ……