Application Research of Amoeba Model in Cost Control—Take Huawei as an Example

Abstract

The amoeba business model is an operation and management system that integrates the power of all the staff through the independent accounting of small collective. One of the difficulties that Chinese enterprises are facing now is cost control. Nowadays, the cost is getting higher and higher, especially the labor cost. The competition between enterprises is getting more and more intense, and the profits are getting less and less, which makes it difficult for many companies to maintain and starts to reduce costs. One of the concepts of the amoeba model is “maximizing sales and minimizing expenses” .In this paper, Huawei, as a company with nearly 170,000 employees, must have huge costs in terms of personnel and materials. In 2016, the company introduced the amoeba model to control corporate costs and reduce employee management costs. The company has formed an atmosphere of full participation in corporate management, and employees' awareness of accounting and cost awareness have improved the company's cost management system. At the beginning of this paper, the cost control of amoeba is described, and the cost control and method of the Huawei company are expounded. The application of the amoeba cost model in the cost control of Huawei is also analyzed. This paper also gives a brief description of the possible problems in the cost control of the amoeba model in the light of the environment in which Chinese enterprises are located, and discusses the solutions and Enlightenment to the cost control of the amoeba model.