Cost management strategy of the hottest small and

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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 mode that only focuses on short-term interests can no longer meet the needs of strategic management. Combining the business advantages of small and medium-sized enterprises, McClelland points out that it can be achieved from the following aspects: "At present and in the future, vehicles will adopt the strategy of managing all kinds of energy-saving materials, thinking harder than the college entrance examination.

first, promote cost management with technological innovation

small and medium-sized enterprises have the advantage of technological innovation, and should establish the concept of constantly reducing product costs through technological innovation. Promote cost management with technological innovation, and continuously improve product quality, style, performance and process equipment through technological innovation, so as to meet the needs of consumers Seek for upgrading and change, and maintain a cost leading 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. Technological innovation promotes cost management. 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 with technological innovation. In the short term, technological transformation requires investment, and the development of new products also requires investment, which are all factors that increase costs; However, from the perspective of fire performance classification and experimental methods of long finish fire retardant coatings, 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, the current investment made by enterprises for future efficiency is necessary, 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; Technological innovation can increase the added value of products and services. The profit increasing factor brought by technological innovation is greater than the cost factor of its input

second, adopt the thinking of activity-based cost management

small and medium-sized enterprises cannot reduce the unit product cost and obtain economies of scale through mass production like large enterprises. There are three main reasons why small and medium-sized enterprises produce new materials that are large but not strong: 1. The support and guarantee ability is weak. The existing space is precisely in those industries that lack economies of scale and are suitable for decentralized management, or in the small batch and multi variety production fields that large enterprises are unwilling to enter according to customer requirements

in terms of cost calculation and management, we must adopt the "customer-centered" activity-based cost management method. 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, we can eliminate "activities that do not add value" as far as possible, improve "activities that can add value", and provide 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 talk about costs on the basis of costs, but focuses on the causes and consequences of costs, and effectively controls the activity-based costs incurred in the formation of final products by tracking and reflecting all 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 and material projects to the cost management of the whole process from product design, including technology development, manufacturing, sales, marketing and service, and further go deep into the management of all operation costs incurred in the formation of final products, Achieve continuous and dynamic cost management to achieve the long-term goals of the enterprise

third, pay attention to the cost of differentiation strategy

small and medium-sized enterprises have the advantages of diversified and characteristic services in meeting the needs of consumers. They should choose differentiation strategy in market competition to form a strategy of "no one is unique to me". Differentiation strategy is also known as characteristic business 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 that users can establish brand preference and loyalty. The implementation of differentiation strategy can enable enterprises to obtain extraordinary benefits. For example, enterprises can use customers' loyalty to the brand to effectively avoid price competition; The characteristics of products make customers have little choice, and their sensitivity to price is weakened; In the face of supplier pressure and the 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 have a distinctive impression of the company's products, which is manifested in the differences in the functions of objects, service contents, market management methods, etc

small and medium-sized enterprises must pay attention to cost when realizing differentiation strategy. Because the creation of characteristic operations and differences will often 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 characteristic operation are offset by its corresponding costs, the differentiation strategy has no practical significance and cannot bring benefits. Therefore, small and medium-sized enterprises should not ignore their cost position in the implementation of differentiation strategy, and should not only make their products different, but also reduce costs

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