The Appraisal Of The Sustaining Operational Mechanism Of The Business Group

With the high-speed growth of our country's economy, many enterprises begin the way of business group. Though there are many business groups in our country, compared to those in developed countries, they are deficient in quality and scale. At the same time, there are many faults that lead their dissolution in them. Now that the reform of our country's economic system starts the stage of system innovation, these enterprises face the problem of how to develop further. The purpose of this paper is to search a sustaining operational mechanism for these business groups that makes them grow perpetually.The thought of this paper is as follows: by the analysis of the differences in operational mechanism between business groups and single enterprises, the writer wants to find the five necessary operational mechanisms named controlling and coordinating mechanism, decision-making mechanism, motivating mechanism, restricting mechanism and marketing widening mechanism for these business groups to make them realize sustaining development, elaborates these five mechanisms and make efforts to find out the faults in current mechanisms and solutions of them.The first chapter of this paper reviews the concept, the emergence, the types and the features. Meanwhile, it points out the scope of the business group in this paper, finds out the content of the operational mechanism for business groups by comparing the operational mechanisms of the business group and a single enterprise. The second chapter elaborates the controlling and coordinating mechanism, including the organizational system of business groups, the relationship and connecting ligament among the enterprises in the same business group, the parent company's control and coordination to the son companies and the improvement of the present mechanism. The third chapter tells about the decision-making mechanism, consisting of the decision-making structure of the business group, the centralization and decentralization of power in business groups, the decision-making bodies, the decision-making procedures, the decision-making skills and ways and the problems in the decision-making mechanism. The fourth chapter narrates the motivating mechanism of the business group, including the motivating structure, the motivation to the son companies, the directors, the supervisors, the operators and ordinary employee, and the existing troubles in the motivating mechanism. The fifth chapter illuminates the restricting mechanism of the business group, covering the restricting structure, the restraints of the son companies, the operators, and the ordinaryemployee. The sixth chapter explains the marketing widening mechanism. It's for the single enterprises in the business group. An enterprise should have its own competitive edges if it wants to expand the scale. Competitive edges derive from the core competence and constant innovation. The last chapter emphasizes the supporting effects on these five operational mechanisms from the financial management.The paper arrives the conclusion that the business group can keep its coherence and viability and grow better only by perfecting and normalizing the five operational mechanisms. In the paper, the writer has his own views on many questions, like the solution to the problems of isolated optimal decision-making and short optimal decision-making in business groups, the firm innovation under the circumstances of technology innovation wrapping up outside, and so on.