Zhuhai Incom Enterprise Groups

This article tries to exhibit the dilemmas a local state-owned holding company-Zhuhai Incom Enterprise Groups(INCOM) encounters and how it selects a developing strategy in the hard environment in which china state-owned economy has been adjusting and reforming strategically, for adapting to the international customs and practice at the beginning of new century.The part of the case description introduces the history of INCOM ,its organization structure, capital management and facing difficulties in reforming , emphatically introduction of investment directions and sources of financing , finance management system, the main subsidiary company's governance and operating, investment income , motivating methods and operating.Following way of the "goal-structure-relationship-performance" thoughts, the part of the case analyzing diagnoses lots of problems in capital management of INCOM, reveals preliminarily the intrinsic mechanism of unbalancing governance, incorrect motivating and out-of-control management. At last, some suggestion is given on how the company do reform to survive.