Connotation and characteristics of enterprise strategic cost management

Connotation and characteristics of enterprise strategic cost management

Strategic cost management means that managers use special methods to provide analysis data of enterprises themselves and their competitors, help managers form and evaluate enterprise strategies, thus creating competitive advantages and effectively adapting to the changing external environment.

Cost advantage is the core of strategic cost management. What should traditional cost management achieve? Reduce costs? . Compared with the traditional cost management system, the strategic cost management system has its own characteristics:

1. The comprehensiveness of factor analysis and the integrity of enterprise cost management.

Strategic cost management is to put management in the internal and external environment that affects enterprise cost, and comprehensively analyze the internal and external environmental factors that affect enterprise cost. Traditional cost management is only an incomplete analysis of internal environmental factors. Strategic cost management believes that the impact on enterprise cost includes not only internal factors, but also external environmental factors, such as politics, law, economy, social culture, technology, natural environment and other factors that have an impact on enterprise cost management and control.

2. Combination of long-term goals and short-term goals.

The goal of strategic cost management is the cost management result that an enterprise needs to achieve in a long period of time in order to realize its mission and consider the favorable and unfavorable factors of its internal and external environment. Strategic cost management objectives include long-term objectives and short-term objectives. The short-term goal of strategic cost management is usually 1 year, and the long-term goal is usually 3-5 years or longer. There are several short-term goals in the long-term goal. In order to facilitate management, strategic cost management objectives can also be divided into three categories: long-term, medium-term and short-term objectives. In strategic cost management, we should coordinate the long-term, medium-term and short-term objectives of strategic cost management.

3. The significance of strategic cost decision.

The strategic cost decision made by enterprises has a far-reaching and fundamental impact on the realization of long-term survival and development goals of enterprises. The significance of strategic cost decision-making lies in determining the future cost development direction, competitive advantage, synergistic effect and economic benefit of enterprises. Therefore, the strategic cost decision of enterprises should be based on in-depth understanding, thorough analysis and full demonstration of major issues related to the internal and external environment of enterprises, and should not be rushed.

4. Strategic cost management is competitive and forward-looking.

Strategic cost management is not limited to the real-time control of enterprise costs, but from a strategic perspective, focusing on the long-term planning of enterprises and focusing on the construction of competitive advantages of enterprises. So-called? Stand tall and see far? Strategic cost management no longer only emphasizes the reduction of cost and the maximization of short-term profit, but pays attention to the influence of cost behavior on the competitive position of enterprises from the perspective of building and improving competitive advantage, helping decision makers to predict and control cost activities in advance, make the best decision-making plan and promote the realization of strategic management objectives.

5. Strategic cost management pays attention to the shaping of cost management culture and has the characteristics of flexible management.

The so-called flexibility means adaptability and flexibility. Strategic cost management breaks through the disadvantage that cost management only pays attention to the internal business activities of enterprises, pays attention to the competitive factors that affect the cost behavior of enterprises, pays attention to the changes of external supply chain environment and enterprise life cycle, and makes timely adjustments and adaptations. Strategic cost management attaches importance to the change of internal and external environment of enterprises, not only to the diversity and comprehensiveness of cost information, but also to the shaping of cost management culture.

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