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Research on Strategic Cost Management of Enterprises Based on Porter's Value Chain Model

Shuai Ruan 1

Published under licence by IOP Publishing Ltd Journal of Physics: Conference Series , Volume 1533 , Information technology Citation Shuai Ruan 2020 J. Phys.: Conf. Ser. 1533 022056 DOI 10.1088/1742-6596/1533/2/022056

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With the increasing competition among enterprises, modern enterprises are facing a complex internal and external situation, which requires enterprises to strictly control their own cost management. The cost management activities of enterprises have great potential. Through effective cost control, we can strictly control the cost management of each link, which can reduce our own costs and improve their competitiveness. Through Porter value chain model, enterprises can control their own strategic cost, which caters to the competitive environment of enterprises. Through the value chain analysis tool of strategic management, we can better calculate the cost management of value chain, which can break through the limitation of traditional cost management. Through the whole life cycle, we can save production, R &amp, D and design, raw material procurement, production and processing costs, which can complete the whole process control of the value chain. Firstly, this paper analyzes the concept of Porter's value chain model. Then, this paper analyzes the strategic cost management based on value chain. Finally, some suggestions are put forward.

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Strategic Management of Costs: A New Tool to Gain Competitive Advantage

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• Vlora Berisha 3  

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In a dynamic business environment that includes rapid change, the powerful extension of technological development, increased competition, globalization, market segmentation, unsustainable demand, the importance of information, and changing business processes, cost management has become more critical, dynamic, and necessary than ever before. In order to rescue itself from the claws of competition today, every firm must achieve a competitive advantage. Managers need to think competitively and devise and execute an effective strategy. The selection and implementation of an appropriate competitive strategy are the keys to both the short-term and the long-term success of the firm. The purpose of this study is to identify and empirically test the role of cost management tools in achieving the strategic objectives of Kosovo firms.

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Berisha, V. (2017). Strategic Management of Costs: A New Tool to Gain Competitive Advantage. In: Tsounis, N., Vlachvei, A. (eds) Advances in Applied Economic Research. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-48454-9_17

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Research on Strategic Cost Management in Modern Enterprises

In the environment of market economy, many enterprises have started to enter the "low profit era", the competition between enterprises is becoming more serious. Economic benefit is always the primary target in enterprise management. Strategy management thought in cost management realizes the strategic function expansion, has formed the strategic cost management. It is separated from the traditional " save " concept, but the use of cost data and information, and to confirm the optimal strategy and promote the development of the company's competitive advantage, so as to realize the transition to the modern management. The implementation of strategic cost management is the cost management accounting information through the strategic management cycle, ensconce cost analysis and cost information in strategic management, related factors and influence strategy together, through a comprehensive understanding, from a strategic height of enterprise cost structure and cost behavior control and improvement, seek the competition advantage for a long time, to provide information service for strategic management. The primary task of the strategic cost management is the focus on cost strategy space, process and performance. Further, the cost of information throughout the whole process of strategic management, by analyzing the cost behavior, cost structure, comprehensive understanding, control and improvement, seek the competition advantage for a long time. Strategic cost management is an important prerequisite for an enterprise to gain advantages in modern increasingly competitive market. This article concentrates on the strategic cost management, starting from the concept and connotation of strategic cost management in modern enterprises, discusses the problems of cost management, analyzes the characteristics and innovative passages of strategic cost management and puts forward innovative tactics of strategic management in modern enterprises. Therefore, this article introduces strategic cost management notions and advocates improving cost management consciousness, to establish long-term, extensive, comprehensive and dynamic strategic cost management models. By advanced information processing platform, to improve technical innovation level and effective cost savings for the enterprise, puts forward feasible suggestions to enhance enterprise competitive ability.

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Shafali Nagpal

The term strategic cost management has a broad focus, it is not confined to the continuous reduction of costs and controlling of costs and it is far more concerned with management's use of cost information for decision-making. Strategic cost management is important to organizations because it is more than focusing on costs; in the successful companies of the 21st century costs will not be the only most important factor, but also value and revenue consider critical factors in the success of companies. At this point the researcher advocates that strategic cost management is a philosophy, an attitude, and a set of techniques to contribute in shaping the future of the company. Authors suggested a framework which has far more impacts on any organization compare to traditional cost management.

siddharth garaniya

"This study aimed to identify the Role of Strategic Costs (SCs) in Activating Competitive Advantage (Field Study in the Paints Companies - Khartoum State). The study tested two hypotheses which are: There is a significant relation between (SCs) and the Activating of the Competitive Advantage in the Sudanese Paints Companies in Khartoum State, there is a significant relation between (SCs) and the reduction of production costs in the Sudanese Paints Companies in Khartoum State. Researchers distributed (40) questionnaire forms among some of the workers in the field selected randomly (33) Forms were collected as 83%. Statistical package of social sciences programmer (SPSS) used for analyzing data. The study reached some findings from which: the strategic costs contribute in reducing costs during the products design stage, the companies has awareness in analyzing the competitive advantage situation to the competitors costs structure, the paints companies in Khartoum work to improve its operations and products continuously to decrease costs, Some of the study recommended to: there is necessity in applying the strategic cost methods together to activate the competitive advantage continuously , to do more studies in all the Sudanese industrial companies to the benefit of adopting the strategic cost in decreasing costs and to support the competitive advantage. Dr. Abubkr Ahmed Elhadi Abdelraheem | Dr. Badreldin Elhadi Ahmed Serajeldin | Aldouma Abdallah Abdalrahman Jedo""Strategic Cost and Activating Competitive Advantage"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-4 , June 2017, URL: http://www.ijtsrd.com/papers/ijtsrd147.pdf Article URL: http://www.ijtsrd.com/management/accounting-and-finance/147/strategic-cost-and-activating-competitive-advantage/dr-abubkr-ahmed-elhadi-abdelraheem"

IAEME PUBLICATION

IAEME Publication

The necessity of perfection of management of enterprise competitive advantages is deterined by swift development of innovative information technologies and transformation digital processes in economy. It supposes search and development of new approaches and special purpose reference-points for implementation in the control system of an enterprise. The NBIC convergence was taken as the basis of research, which is based on the combination of nanotechnologies, biotechnologies, informative and cognitive components. Subject domains are investigated, the analysis of features of each component is conducted, the role is predefined, possibilities of introduction and effective use in the management of competitive edges. The special accent is done on the role of Cogno component in the cut of cross-cultural communicative balance of personnel and empiric research on the readiness of personnel of three telecommunication enterprises to introduction of NBIC component is conducted. It supposes integration of technologies with the corresponding pools of knowledge, high level of interaction and cooperation, which leads to a new level of development and synergism. Recommendations of advancement of transformation processes on an enterprise during the management decision-making process are set forth. The results of the research can be drawn on for the further searches of effective technologies of management of the competitive edges of enterprise with the purpose of introduction of innovative achievements and obtaining of economic effect

Tehnicki vjesnik - Technical Gazette

Ivana Miklošević

"This study handles impact of strategic cost analysis on accounting information (field study on engineering industries Companies - Khartoum State), the study aimed to understand the concept of strategic cost analysis and the concept and characteristics of accounting information. The study test one hypothesis following: There is a statistically significant relationship between the application of strategic costs analysis and accounting information and hypothesis is achieved. The study reached some findings from which: strategic cost analysis contributes to the provision of appropriate information for decision making, Strategic cost analysis contributes to reducing the costs of different activities, strategic cost analysis contributes to providing information about activities that do not add value to the product, the study recommended following: care should be taken to apply the types of strategic cost analysis to obtain product information at all stages, must be applied the types of strategic cost analysis with modern cost methods to reduce the total cost of production. Dr. Abubkr Ahmed Elhadi Abdelraheem | Dr. Badreldin Elhadi Ahmed Serajeldin | Aldouma Abdallah Abdalrahman Jedo""Impact of Strategic Cost Analysis on Accounting Information"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-4 , June 2017, URL: http://www.ijtsrd.com/papers/ijtsrd146.pdf Article URL: http://www.ijtsrd.com/management/accounting-and-finance/146/impact-of-strategic-cost-analysis-on-accounting-information/dr-abubkr-ahmed-elhadi-abdelraheem"

2011 International Conference on Economics Business and Marketing Management (EBMM 2011)

Gabriela Marchis , Romeo Ionescu

Norashikin Rahman

Universal Journal of Accounting and Finance

Horizon Research Publishing(HRPUB) Kevin Nelson

The purpose of the study is to analyze the functions of a cost management system in modern organizational management. Based on general scientific research methods and an expert survey, the key functions of cost management are defined. The authors justify the feasibility of developing a cost management system with the determination of cost management functions. The key approaches to cost analysis are formulated. It is important to ensure stable connections between the elements of the management system at the management level of the business hierarchy during the implementation of cost management functions. Moreover, one must build a mutual cost regulation mechanism at the stages of planning, organization, technological process development, and production, i.e. during the creation of the entire business process. There is a need for coordinated work by all the structural departments at the enterprise with strong horizontal and vertical logistical connections and established responsibility centers during the development of the general management system that the cost management system should be integrated into it. The tried and tested communication plan for information transmission and coordination between structural units at an enterprise determines the efficiency of the management and control systems aimed at maximum impact from management at the executive level when management decisions are made. The practical significance of analyzing the functions of cost management systems in a modern organization management system consists in increasing the efficiency of management decisions made based on the data from the analytical assessment of the costs of the enterprise. The theoretical significance lies in the chance to use the study results during the development of a general organization management system.

Akkad Journal of Contemporary Management Studies

Ahmed M A H E R Mohammed Ali , qasim H A B E E B Nashid

Technological progress and development and the automation of production processes have made the traditional approach to cost management incompatible with these developments and the administration's need for a complex mixture of quantitative information related to the objective measurement of costs, especially indirect ones, as well as non-quantitative information related to the customer, his needs and desires, all of which reflected the need to move to an approach based on customer relationship management With a strategic dimension that takes into account the developments in the competitive environment, the current research aims to demonstrate the extent of the ability of cost technology to operate on the time-drive functions based cost as a strategic tool that is compatible with developments in the process of allocating indirect costs and the extent of its ability to provide financial and non-financial information on unutilized energy and jobs non-adding value with the aim of eliminating it by achieving a real reduction in product costs. The results of the statistical analysis indicated the highest mean (4.15), standard deviation (86%), and coefficient of variation (20.09) within the percentage weight of (73.33) that the agreement of the cost technique on the time-drive functions based cost and the strategic approach to cost management works to reallocate indirect costs based on the time vectors used to complete each function of the product, providing information to the management of the economic unit about unused energy and non-value-adding functions in a way that achieves the possibility of reducing production costs without affecting the quality of the product and the customer's desires.

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