Case Study on Strategic Cost Management Model for an International Equestrian Riding Products Company in Taiwan

• Main Authors: Jung-Ching Tang, 唐榮慶
• Other Authors: En-Te Hsu
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/90895355447861574696

碩士 === 東海大學 === 會計學系 === 96 === This research takes an international equestrian manufacturer as the study case. The study illustrates how this company would encounter the changes of external environment and effectively use its cost management model to reduce costs and increase its corporate values by creating competitive advantages over its rivals. This study integrates the value net concept proposed by Brandenburger & Nalebuff (1996) and activity-based management system described by Cooper & Kaplan (1991), and further proposed a cost management model. Brandenburger & Nalebuff (1996) believe companies need to engage in co-opetitive ventures and interact with the four players in its market- customers, suppliers, competitors and complimentors, in order to create greater market value and opportunities. Cooper & Kaplan (1991) noted that through the steps of activity analysis, value analysis, cost improvement and performance management, companies are capable to lower product costs and improve efficiency. In a price competitive environment, such model would steer a company with improving value (value up) and better cost (cost down), hence enhancing the competitiveness of enterprises. The research result shows that the decision-making of cost management should be avoided just only from the traditional short-term point of view of cost accounting, because it will overlook the long-term cost by doing so. Instead, the cost management should be considered by the strategies to examine cost management and the cost will be more competitive ever after. From the customer’s point of view to improve corporate value and to establish win-win trade-off transactions (Trade off) would be the top concern of cost management of enterprise. This research will also help the case company to find more rational and efficient ways of allocating and utilizing the limited resources, thus achieving the purpose of cost management and control.