Cost management strategy of small and medium-sized

  • Detail

The cost management strategy of small and medium-sized enterprises

the cost management of most small and medium-sized enterprises is still in a traditional mode that pays attention to short-term interests. With the international development of commodity economy, the market scope is expanding day by day, and the competition is becoming increasingly fierce. The cost management model that only focuses on short-term interests can not meet the needs of strategic management. Combined with the operating advantages of small and medium-sized enterprises, the strategic thinking of cost management can be carried out from the following aspects

I. promoting cost management through technological innovation

small and medium-sized enterprises have the advantage of technological innovation. They should establish the concept of continuously reducing product costs through technological innovation. Promote cost management through technological innovation, and continuously improve product quality, style, performance and process equipment through technological innovation, so as to meet the upgrading and change of consumers' needs and maintain the cost leadership strategy. Low cost is not equal to low quality. Low cost cannot come from cutting corners or reducing product functions. Only products with the same quality and function can be compared in cost. To promote cost management through technological innovation, from the perspective of value chain analysis, products can be changed to eliminate redundant functions; The manufacturing process can be changed to make the process more effective; Realize automation in high cost labor-intensive activities; In the procurement process, value analysis is carried out to evaluate the basic functions of all raw materials and spare parts and seek the lowest cost, so as to reduce the procurement costs and raw material costs

promote cost management through technological innovation. In the short term, investment is required for technological transformation and the development of new products, which are all factors that increase costs; However, from the perspective of fire performance classification of long finish fire retardant coatings and test methods fire performance classification gb15442.1 (1) phase 995, as a whole, it can not only obtain greater benefits, but also help to strive for the initiative of competition and establish the advantages of enterprises in competition. Therefore, it is necessary for enterprises to make the current investment for future efficiency, because innovative products will increase sales and market share; The price of innovative products can be appropriately increased; The application of new technological achievements can improve efficiency, save energy and reduce consumption, reduce waste and loss; The added value of products and services can be increased through technological innovation. The profit increasing factor brought by technological innovation is greater than the cost factor of its input

II. Adopt the thinking of activity-based cost management

small and medium-sized enterprises cannot reduce the unit product cost and obtain scale benefits through mass production like large enterprises. There are three main reasons why small and medium-sized enterprises are not strong in producing new materials: 1. The supporting capacity is weak, and the existing space just exists in those industries that lack economies of scale and are suitable for decentralized operation, or in the small batch and multi variety production fields that large enterprises are unwilling to get involved in according to customer requirements

in this way, the "customer-centered" activity-based cost management method must be adopted in the cost calculation and management. Activity based cost management is an activity-based scientific information system. It shifts from "product" as the center to "activity-based". Through the confirmation and measurement of activity-based cost, it eliminates "activities that do not add value" as much as possible, improves "activities that can add value", and provides useful information in time, so as to minimize relevant losses and waste. This is the basic source to deeply tap the potential of cost reduction and realize cost reduction. The most important point of activity-based cost management is that it does not discuss the cost on the basis of cost, but focuses on the cause and effect of the cost, and effectively controls the activity-based cost in the process of forming the final product by tracking and reflecting all the activity-based activities

in the current fierce market competition, small and medium-sized enterprises must take strategic consideration in cost management. They should expand from the management of simply reducing the production process cost of labor, cost and material projects to the cost management of the whole process from product design, including technology development, manufacturing, sales, marketing and service, and further deepen to the management of all activity costs incurred in the formation of final products, Achieve continuous and dynamic cost management to achieve the long-term goals of the enterprise

III. pay attention to the cost of differentiation strategy

small and medium-sized enterprises have the advantages of diversified and characteristic services in meeting consumer needs. They should choose differentiation strategy in market competition to form a strategy of "no one is unique to me". Differentiation strategy is also called characteristic operation strategy. Its strategic theme is to strive to form something with characteristics within the whole industry through the forms of company image, product characteristics, product services, technical characteristics, distribution routes, etc., so as to enable users to establish brand preference and loyalty. The implementation of differentiation strategy can enable enterprises to obtain extraordinary benefits. For example, enterprises can effectively avoid price competition by using customers' loyalty to the brand; The characteristics of the product make customers have little choice, and their sensitivity to the price is weakened; In the face of supplier pressure and threat of potential substitutes, enterprises or products with characteristics are often more advantageous than other competitors

there are many ways to realize the differentiation strategy. Through patented technology, enterprises produce products that are superior to existing similar enterprises in performance and quality. Strengthen advertising and sales promotion through market publicity, so that users can have a distinctive impression of the company's products, which can be expressed in the form of differences in material functions, service contents and market management methods

small and medium-sized enterprises must pay attention to cost when realizing differentiation strategy. Because the creation of characteristic operations and differences will always incur costs. For example, providing users with products with longer service life generally requires more and more expensive raw materials. If the profits generated by the characteristic operation are offset by the corresponding costs, the differentiation strategy has no practical significance and can not bring benefits. Therefore, in the implementation of differentiation strategy, small and medium-sized enterprises should not ignore their cost position, and should not only make their products different, but also reduce costs

Copyright © 2011 JIN SHI