Value chain analysis as a tool to reduce costs. Strategic cost analysis

Strategic Analysis costs- comparing the costs of the company and its competitors along the entire value chain. Such an analysis is the most important integral part analysis of the strategic position of the company. The term "strategic cost analysis" allows you to focus on the features of this cost analysis, its differences from the traditional one. Firstly, this is an analysis by which we intend to identify or create competitive advantages, and therefore, this is a comparative analysis, including a comparison of the costs of competing products, brands, etc. Secondly, this analysis is based on the calculation , which is done not by costing items or cost elements, but by elements of the value chain, that is, by type of activity. An objection may arise here - is it not possible to identify losses and outline ways to reduce costs with the help of costing or cost estimates? In response, we can say the following: there is no need to belittle the significance of the above calculations (calculation, estimate). Moreover, when it comes to calculating costs for a particular type of activity, of course, the idea of ​​​​calculation or estimates is taken as the basis. But as tools for cost analysis, these calculations can only be used within the framework of current activities, in solving operational rather than strategic tasks. The latter involve not just a cost analysis, but a strategic cost analysis, corresponding to those strategic changes that, in particular, affect the composition and structure of the processes performed in the organization. Strategic cost analysis is therefore structured in such a way that we first talk about the structure of the process, then we calculate the costs for each element of the process, and then we begin to conduct an analysis that allows us to answer next questions: how are the costs of certain elements of the process related? What happens if costs are reduced or increased? How will the combination of certain elements of the process affect the total costs? etc.

Especially great importance Comparison of costs acquires in the case of the production of consumer goods, where price competition plays a major role, and companies that provide low costs are in the lead. This is also important in cases where the product is differentiated (see the differentiation strategy (clause 5.1)), and along with price competition, non-price competition is also actively used.

Differences in the costs of competitors can be explained by the actions of factors such as:

Supplier prices;

Technology and equipment;

Economies of scale, learning curve effects (see § 5.2 and footnote in § 3.2);

Inflation and changes in exchange rates;

Marketing expenses;

transport costs;

Marketing expenses.

Costs can be analyzed in different ways. This can be done in the context of costing items, cost elements, etc.

Strategic cost analysis in comparing the costs of a firm and its competitors uses the concept of a value chain.

value chain- a strategic cost analysis tool that demonstrates the addition of value to the product when performing the main and auxiliary activities. The term "value chain" is sometimes used as a synonym. This so-called chain gives an idea of ​​the strategically related activities of the company and allows you to trace the movement, costs, and also highlight potential sources of increasing the company's competitiveness.

The nine strategically related activities include core and support activities

Main activities:

receipt of materials (internal logistics);

work operations (production);

commodity circulation (foreign logistics);

marketing and sales;

service (service).

Ancillary activities:

procurement of raw materials and supplies;

technology development;

control by human resourses;

company infrastructure.

In addition to these activities, the value chain includes the boundaries of profit included in the price of products.

By decomposing the total costs of production and sales of products by strategically related actions, you can better understand the cost structure, identify the main elements.

The value chain simultaneously allows you to analyze the relationship between activities, and therefore, the analysis of the relationship between the costs of these activities. The first is important for strategy development. The second has to do with setting and achieving financial goals.

Example. Linking the processes of sales, product production and purchases allows you to reduce stocks of raw materials and finished products.

Example. The purchase of more expensive, but more modern equipment leads to lower costs and improved product quality. The value chain can be used to

1) ensuring competitive advantages by:

a) cost reduction (the entire value chain is involved in the analysis);

In the first case, the analysis can be carried out autonomously for each type of activity.

Example: reduction in production costs may be associated with the change of equipment, advanced training of the contractor, etc.;

b) differentiation (more effort can be consciously spent on
development of areas of activity necessary for differentiation).

When carrying out differentiation, managers can deliberately increase the costs of certain activities, which, ultimately, should ensure an increase in profits;

2) analysis of the formation of costs in each link of the chain and influence
costs of performing one type of activity on costs in the rest
links.

Example. The increase in costs associated with the acquisition of higher quality raw materials (purchases) has reduced the cost of processing (production).

3) assessment of the possibility of price reduction based on the analysis of the relationship between
types of production activities.

In most cases, the company's activity is not autonomous, but is included in the system of large-scale activities, which means at the same time the inclusion of the company's value chain in the system of value chains. Such a system may include value chains of suppliers, manufacturers, distributors, and end users. Understanding the structure of such a system makes it easier for company managers to assess its competitiveness.

Value chain system- value chains that precede the company's activities, company value chains, value chains.

following the activities of the company, value chains-buyers (final consumers).

Strategic cost analysis involves comparing the composition and structure of costs both along the value chain of the firm and its competitors, and along the value chain systems that include the activities of the firm and its competitors.

Value chain management- analysis of the value chain, comparison with competitors, identification and elimination of shortcomings associated with high costs, identification of activities in which competitive advantages are potentially hidden.

In a general sense, cost chain analysis is a systematic approach to accounting for the costs of business processes from the very beginning to the very end. As part of the decision-making process, the determining factor is the cost of products and services; producing low-cost products can generate high profits. The nature of the enterprise in terms of their size is different. For example, an unprofitable product group on big enterprise will not cause an immediate crisis, while in a small enterprise the situation will be quite different. In a small business, if the business is not profitable, it simply cannot survive.

Given the many factors that contribute to cost differences, a company must always be aware of how its costs compare to those of its major competitors. This requires a strategic cost analysis that captures the cost position of the company relative to its closest competitors.

Cost chain concept. The primary analytical tool for strategic cost analysis is the concept of the cost chain, which defines the activities, functions, and processes that must be carried out in the development, manufacture, marketing, delivery, and support of a product or service. The chain of cost-creating activities begins with the purchase of raw materials, continues with the manufacture of parts and assemblies, their assembly, wholesale distribution, and ends with retail end user of the finished product or service.

A company's cost chain shows a consistent set of activities and functions performed within it (Figure 4-1). This chain includes a profit because the markup on the cost of operating the value-creating divisions of the company is usually part of the price (or total cost) paid by the buyer. Creating value that exceeds the cost of obtaining it is a fundamental goal of business.

Dividing a company's activities into strategic steps and processes allows you to better understand the company's cost structure and determine what the main cost elements are. Each activity in the cost chain creates costs and links assets. The accrual of the operating costs of the company and its assets for each individual activity allows you to estimate the costs associated with this work. The company's costs in the implementation of each type of work can be increased or decreased under the influence of two types of factors: structural (scale effects and the development curve, technological requirements, capital intensity and complexity of the product range) and managerial (stimulating employees to constantly improve labor, creating organizational capabilities and such employee relations that would contribute to high quality and the work itself, and products, reducing the time between the start of development new products and offering it on the market, maximizing the use production capacity, qualified development and rational use of internal technological processes, effective work with suppliers and consumers in order to reduce the costs of these activities). The value chain is a tool for analyzing potential sources of delivering more value to consumers and identifying synergies. The value chain includes all activities of the organization (chain links) aimed at creating value for the consumer. In the classical model of an organization, these activities include the development, production, marketing, distribution, and support of its products. These activities are grouped into main activities (input logistics - providing production operations with everything necessary; production operations - production of finished products; output logistics - handling finished products; marketing, including sales, and services) and supporting activities (infrastructure of the organization - providing effective management, finance, human resource management, technological developments, purchases involving the acquisition of everything necessary for the conduct of the main activity). Supporting activities relate to the conduct of all major activities. In a more detailed model of the organization, each of its nine activities can in turn be specified - for example, marketing - according to its individual functions: conducting marketing research, product promotion, new product marketing development, etc. The challenge is to test the costs and outputs of each of the nine activities and find ways to improve them. By comparing this data with those of competitors, ways to gain competitive advantage are identified.

Primary activity

1. Incoming logistics - acceptance, storage and sorting of suppliers' products; control; inventory management.

2. Production activity- activities, costs and assets aimed at turning the flow of raw materials into the final product (production, assembly, packaging, maintenance of equipment, installation, certification of product quality, protection environment)

3. Outbound logistics (delivery of goods to the consumer) - activities, costs and assets associated with the physical delivery of goods to the buyer (warehousing of the final product, order processing, scheduling, shipping, transportation).

4. Sales and marketing - activities, costs and assets related to sales, advertising and promotion efforts, marketing research and planning, dealer and distributor support.

5. Service (service) - activities, costs and assets intended to provide assistance to buyers in installation, delivery of spare parts, maintenance and repair, for technical assistance, informing buyers and handling complaints.

Ancillary activities

Technology development (know-how, technological innovations used in each link of the value chain) - activities, costs and assets related to the process of research and development of the product, the process itself, improvement of the design process, development necessary equipment, development of software, telecommunications systems, computer developments, new database capabilities, development of a computer support system.

2. Personnel management - activities, costs and assets related to the recruitment of employees, training, development and social security personnel, relations between employees, increasing professionalism (skill).

Firm infrastructure - activities, costs and assets related to general management, accounting and finance, legal issues, security and privacy, information system management, and other top management functions.

Each enterprise, firm, before starting production, determines what profit, what income it can receive. The profit of an enterprise, a firm depends on two indicators:

product prices and production costs. The price of products in the market is a consequence of the interaction of supply and demand. Under the influence of the laws of market pricing in conditions of free competition, the price of products cannot be higher or lower at the request of the manufacturer or buyer, it is leveled automatically. Another thing is the costs. production factors used for production and marketing activities, called "production costs". They can increase or decrease depending on the amount of labor or material resources consumed, the level of technology, the organization of production and other factors. Consequently, the manufacturer has many cost-cutting levers that he can bring into play with good guidance. What is meant by production costs, profit and gross income?

IN general view production and sales costs (cost of products, works, services) are valuation used in the production process of products (works, services) natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale.

The costs of production and sale of products include:

costs associated with the direct production of products, due to the technology and organization of production;

using natural raw materials;

preparation and development of production;

improving technology and organization of production, as well as improving product quality, increasing its reliability, durability and other operational properties (non-capital costs);

invention and rationalization, carrying out experimental work, making and testing models and samples, paying royalties, etc.;

service production process: providing production with raw materials, materials, fuel, energy, tools and other means and objects of labor, maintaining the main production assets in working condition, fulfillment of sanitary and hygienic requirements;

ensuring normal working conditions and safety measures;

production management: maintenance of employees of the management apparatus of an enterprise, firm and their structural divisions, business trips, maintenance and service technical means management, payment for consulting, information and audit services, hospitality expenses related to commercial activities enterprises, firms, etc.;

training and retraining of personnel;

deductions for state and non-state social insurance And pension provision, to the State Employment Fund;

deductions for compulsory health insurance, etc.

The specific composition of costs that can be attributed to production costs are regulated by law in almost all countries. This is due to the peculiarities of the tax system and the need to distinguish between the company's costs according to the sources of their reimbursement (included in the cost of production and, therefore, reimbursed at the expense of prices for it and reimbursed from the profit remaining at the disposal of the company after paying taxes and other obligatory payments).

In Russia, there is a decree on the composition of costs for the production and sale of products (works, services) included in their cost, and on the procedure for the formation of financial results taken into account when taxing profits.

There are two approaches to cost estimation: accounting and economic. Both accountants and economists agree that a firm's cost in any period is equal to the cost of the resources used to produce goods and services sold during that period. The firm's financial statements record actual ("explicit") costs, which are cash costs to pay for used production resources(raw materials, materials, depreciation, labor, etc.). However, economists, in addition to explicit, take into account "implicit" costs. Let's explain this with the following example.

Let us assume that the firm invests in the production of products borrowed capital, which it took out from the bank; then the costs would include funds for the repayment of bank interest. Therefore, provided that the attracted capital is invested, implicit costs in the amount of bank interest must be excluded from the income of the firm.

However, even the concept of "implicit costs" does not give a complete picture of the true costs of production. This is because of the many options use of resources, we make one definite choice, the uniqueness of which is forced by limited resources.

So, for example, being carried away by TV, you miss the opportunity to read a book, having entered the institute, we lose the opportunity to receive wages if we were engaged in this or that job.

Therefore, taking one or the other production solution and estimating the actual costs, economists consider them as costs of missed (lost) opportunities.

Opportunity costs are understood as the costs and loss of income that arise when choosing one of the options for production or sales activity, which means the rejection of other possible options.

The concept of the environment and its significance for successful activity enterprises in the international market. Evaluation of the international marketing environment on the example of OJSC "Dallesprom". Problems that arise when entering the international market, taking into account the analysis of the marketing environment.

SWOT-analysis of the enterprise's activities as the basis of strategic management and methodology for its implementation. Activities of the Udmurt branch of Sberbank of Russia, its development strategy. Methodology for constructing an analysis matrix. The threat of new competitors.

A simple but effective development plan is provided HR strategy organizations. It uses widely known and uncomplicated strategic models to help you evaluate both existing and potential human resources.

Analysis of internal and external environment organizations, mechanisms for its development. Variables of the internal environment of the organization. Environment profile and weighting method for each factor. Model of the five forces of competition (according to M. Porter), SWOT-analysis on the example of Avtoservis LLC.

Strategic planning and the definition of strategic business units - SHE. Complex analysis situation for each strategic business unit. Establish marketing objectives for the strategic business unit. Marketing control.

Theoretical and methodological aspects research of expenses, concept, essence and structure of expenses of a commercial enterprise. Analysis of the dynamics of distribution costs by total volume and by cost items. Influence of prices on turnover change retail.

Ways and reserves to reduce costs in trade. Retail turnover as a result of the interaction of supply and demand. The concept, types, values ​​of retail trade turnover and its composition. The impact of retail prices on total amount turnover and its structure.

The central point of marketing activities is the development strategy production program, in particular programs for the production of new goods. .

Marketing cycle and its components. Importance of situational analysis. Collection of information for conducting a situational analysis. Stages of conducting a situational analysis. Economic goals of the enterprise, features of its internal environment.

Determination of the essence of distribution costs - the costs of living and materialized labor expressed in monetary terms for the systematic delivery and sale of goods to consumers. Significance, objectives and sources of information for the analysis of distribution costs in trade.

Concept, goals, essence of strategic marketing. Formation competitive advantage companies. Development stages marketing strategy. Methods for analyzing the external and internal environment of the company. Formulation and development of ways to achieve goals.

General characteristics of Hydrotransmash LLC. Analysis of the macro environment and immediate environment, consumers, suppliers, competitors, the internal environment of the enterprise. SWOT-analysis matrix and global development strategy in modern market conditions.

Competition in international marketing. Concepts describing the essence of competition: emphasis on the behavior of sellers and buyers; focus on market structure imperfect competition. Porter's rhombus - analysis of competitiveness along the entire supply chain.

Analysis of strengths and weaknesses competitors and own enterprise. Determination of the degree of competitiveness, assessment of production capacity, scientific and technical potential of the enterprise. Types and analysis of prices, problems and approaches to their formation.

Assessment of threats and opportunities from the external environment to the firm. Organizational culture store "Delta", its strengths and weaknesses. Types of strategies, SWOT analysis as a method of choice. Recommendations in the field of aggressively offensive strategy.

Calculation of the cost of the power supply unit of the PC. Determination of the cost of raw materials and basic materials, purchased components, semi-finished products. Calculation of the basic and additional wages of production workers. General production expenses.

The concept of the marketing environment of the enterprise. Swot analysis is one of the widely used methods of joint analysis of the external and internal environment of an enterprise. Swot-analysis on the example of the company "Doctor Bormental": macroenvironment, microenvironment, internal environment.

Organizational structure modern company. Organizational structures management. The concept of internal economic (intraeconomic) mechanism. Allocation of costs associated with management accounting. Reducing the labor intensity of products.

The concept, essence and objects of the method of functional cost analysis. Principles, forms of functional cost analysis and its scope. Implementation of accounting by the method of functional cost analysis. Saving materials and labor costs.

SWOT analysis in marketing plan enterprises. Methodology for conducting a SWOT analysis. How can you, if desired, bring the use of SWOT analysis to the point of absurdity. Where to get information? SWOT-analysis - determination of the strengths and weaknesses of the enterprise.

Ushanov I.G.
Samara State University means of communication, Samara
The main difference between traditional management accounting and strategic accounting, as you know, is the fact that the first focuses on the consideration of the main processes taking place in the company (such as procurement, production cycles for manufacturing products, relationships with customers), only in that part that is carried out directly within the organization. In other words, traditional management accounting covers a set of processes from the moment payments are made to suppliers for the supplied raw materials and until payment is received for the delivered products from customers. From the point of view of the cost approach, within this set of processes there are several stages of adding value, limited internal environment enterprises. Value added in this case should be understood as the difference between the total proceeds from the sale of manufactured products and the cost of intermediate products obtained at various stages of the through business process enterprises. Value added includes all internal costs of the organization, incl. the cost of raw materials and materials paid to employees wages, depreciation, rent, and profit. The main goal of the organization, respectively, is to bring the difference between the cost of resources spent on production and the sale of manufactured products to a maximum, i.e. value added maximization.
However, from the standpoint of strategic management accounting as a system information support acceptance strategic decisions The concept of value added contains a number of shortcomings that limit the possibility of its application in strategic goals. These shortcomings can be simplified as follows: the area of ​​application of this concept starts too late and ends too early. Performing a cost analysis only from the point of purchase of raw materials does not allow the company to take advantage of the links between its suppliers and the various delivery options between them, and ending the cost analysis at the time of the sale of products does not allow taking into account the links with key customer groups. However, from a strategic point of view, taking into account and analyzing such opportunities can be extremely beneficial for the enterprise. A convenient tool within the framework of strategic management accounting that allows an organization to carry out such an analysis is the idea of ​​building value chains (value chains or value chains) proposed by Michael Porter as an addition to the concept of value added.
The value chain is one of the methods of strategic analysis used in the framework of the value approach. Modeling and analysis of various value chains reveals possible ways optimization of end-to-end business processes, thereby stimulating the development of investment decisions to change them, as well as determining the return on invested capital for key client groups and highlighting the most attractive client groups or market segments. The main idea of ​​the value chain concept is that the basis of the effectiveness of the organization as a whole in a competitive environment is how effectively the organization, in turn, performs the activities necessary to develop, manufacture, bring to market, supply, and also support its products or services. In order to assess its strategic capabilities, as well as the implementation of strategic initiatives, an organization must carefully analyze its entire value chain, which means that each individual activity must be considered in the context of how much value it creates for the customer, and what costs are necessary to create this consumer value.
So the value chain a separate enterprise is a set of types economic activity carried out by the company in various areas functioning. The traditional composition of the value chain in this context can be represented as follows (Fig. 1). 1 J 1 Raw materials R&D Production Marketing Distribution Service 1 1 P 1
Rice. 1. The value chain of an individual enterprise
In this perspective, it is also interesting to consider the approach to building the value chain of internal business processes of an organization, proposed by R. Kaplan and D.
Norton in the framework of building a balanced scorecard. Kaplan and Norton point out that each business has a unique set of processes to create value for its customers in order to achieve its goals. financial indicators, but, nevertheless, a generalized model for creating a value chain can be distinguished, which organizations of various profiles can use as a basis.
The chain of internal business processes starts with innovative processes - identifying current and future customer needs and how to meet them, continues in operational processes - the production and delivery of goods and services to existing customers and ends with after-sales service, that is, an after-sales service offer that also increases the cost of goods. and services received from the provider. this model shown in fig. 2.
Consider each of the three main components of this model. Innovation process The value chain of internal business processes primarily contains the processes by which an organization examines emerging or latent needs of its customers in order to develop appropriate products and services that can meet these needs. Operational process - the second main process in the general model of the internal value chain - is the production and delivery of goods and services to the customer. Improving the quality of this particular process is traditionally regarded as one of the most important reserves for improving the overall efficiency of a company and reducing its costs, however, Kaplan and Norton, within the framework of a balanced scorecard, put it on a par with the other two main processes they identify in terms of the degree of influence on the achievement of strategic goals. organization goals. As the third component of the internal value chain in this model, after-sales service is considered, which is designed to increase the value of the offer of goods or services of this company in the eyes of target buyers.
It should be noted that the construction of the value chain of a separate organization, both from the point of view of the main activities and from the point of view of internal business processes, still does not solve the main problem that arises when using the concept of value added in a strategic aspect - accounting, including external "links" in the value chain that are outside the company. The key role of the idea of ​​the value chain as a tool for strategic management accounting lies precisely in the fact that, unlike the concept of value added, it focuses on processes that take place, including outside the organization, and each individual organization is considered in the context of the overall chain. value-creating activities. Thus, the value chain in the strategic aspect should be a single sequence of transformations starting from the raw materials and ending with the sale of the product to the end consumer, and each specific organization should be considered as shown in Fig. 3, as an integral part of the overall circuit.
The value chain depicted in fig. 3, takes into account all the value added by the industry, and also competitive enterprise industries. In addition to this, as already noted, it is necessary to distinguish between the contribution to value added created by certain types of core and supporting activities within the organization. Let us briefly characterize each of the presented main activities.
Distribution channel value chain Customer value chain Supplier value chain
kov I support Core activities Company infrastructure
Human Resource Management Technology Development Logistics supply Incoming deliveries Production Outbound deliveries
Marketing and sales _ Fig. 3. A single industry value chain according to M. Porter
Incoming deliveries may include such activities as receiving, storing and distributing incoming resources for manufactured products or services. Production involves the implementation of basic technological operations within the production cycle. Outbound deliveries involve the distribution of the product to customer groups and include such processes as storage, packaging, loading and unloading, etc. Marketing and sales are activities related to familiarizing consumers with a product or service, expanding sales markets, optimizing distribution channels, etc. , i.e. they reflect all aspects marketing activities organizations. Service is intended to maintain or enhance the value of a product or service to the consumer through product preparation for operation, repair, after-sales service, etc. .
In turn, the supporting activities identified by M. Porter are related, one way or another, to each of the main activities of the organization.
In further detail, each of the nine activities of an organization can be further specified, for example, marketing and sales can be subdivided into their individual functions: conducting market research, promoting a product, marketing new product development, and so on. The main task of the analysis of activities within the value chain, as already noted, is to check the costs and output parameters of each of the listed activities and find ways to improve them. By comparing this data with those of competitors, ways to gain competitive advantage are identified. One-
However, we should not forget that the value chain of any enterprise is part of a wider system, which also includes the value chains of suppliers and consumers. An enterprise can improve its profitability not only by analyzing its value chain and implementing measures to optimize it, but also by evaluating the mechanisms by which the organization's value creation activities are combined with the value chains of its suppliers and consumers.
In order to construct a value chain starting from raw materials and ending with the final consumer, it is necessary to identify strategically important economic activities, and then analyze the behavior of costs in accordance with the accepted sources of differentiation. However, according to experts, at present there are practically no organizations capable of high efficiency carry out such an analysis exclusively within their own internal framework, since organizations that fully cover the entire value chain with which they work are extremely rare. In the vast majority of cases, practical activities at different stages of the value chain various companies, covering only a few "links" of a single chain, which means that, from the point of view of methodology, the process of conducting a value chain analysis begins with internal analysis firms and then goes to the external competitive analysis industry cost systems. It ends with the integration of these two analyzes to define, create, and maintain an organization's competitive advantage.
Setting to create a long-term competitive business advantage involves a serious analysis of what benefits the organization brings to existing production and commercial operations in current market segments and how effective its existing production and commercial chains are (i.e., relationships with existing suppliers and customers) . If the analysis shows that an organization can do better in other market segments or value chain organization, then the company should focus on developing this area and rebuild its relationships with suppliers and customers, or optimize internal processes for the implementation certain types economic activity in accordance with the identified opportunities. It should be noted once again that the implementation of these opportunities can be achieved, among other things, through cooperation with other industry participants.
Thus, the need to take into account, when building a value chain, not only internal factors and types of economic activities of the organization, but also external factors, in particular relationships with suppliers and consumers, in the context of given strategic guidelines, allows us to consider the construction of value chains as an effective tool for strategic management accounting, which allows carry out value added analysis, created by the organization within the value chain of the industry as a whole. Moreover, the very concept of Porter's value chain can be to some extent opposed to the approaches adopted in traditional management accounting, in particular the need to focus exclusively on internal factors.
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