Study On Strategic Synergy Of Parent-Subsidiary Corporation

Management of parent-subsidiary corporations of Enterprises Group is an important research topic. Compared with single enterprise, parent-subsidiary corporations faced more complex circumstances whether in external environment or internal control. Especially in the strategic management, parent-subsidiary corporations urgently need to solve the synergy problem in the process of formulating and implementing the strategic plan. Research on strategic synergy of parent-subsidiary corporations, have important theoretical and practical sense.Strategic synergy of parent-subsidiary corporations is a series of coordination, control activities to the parent company level, subsidiary level and function level, in order to achieve the overall strategy of the parent-subsidiary corporations. Parent-subsidiary corporations bring synergy to the Enterprise Groups by exerting the "parenting advantage", and give a certain degree of autonomy of subsidiaries. They achieve the goal of team work on the basis of sharing the resources and capacity of the Group.Parent company is the leadership of the Enterprise Group, which plays an important role in the subsidiaries' strategy formulation and implementation, including oversight, guidance, leadership and control. Parent company's diversification strategy selection is codetermined by the strategic role of the parent company in the Enterprise Group, and the parent company's advantages in value creation. Based on the different autonomy, subsidiaries can be divided into three types: independent type, coordinate-condominium type and the passive acceptance type. It is different to the three types of subsidiaries on the dependence extent of the parent company's resources and capabilities. The process of the strategy matching between parent company and subsidiaries is dynamic, which changes along with the changing of parent company's strategic focus, the parent company and subsidiaries' forces balance, market demand and so on.When establishes the appraisal system of the parent-subsidiary corporations' strategic synergy, it should insist that taking the achievements examination as the head, and following the consistency, sharing and general principle. Except to have attention on the performance of parent company and subsidiaries, but also to the coordination in marketing channel, human resources, culture and so on. Strategy is in the central position of the management system, through the establishment of strategic appraisal system, the synergy between business units and support units in the Group can be come true.For the optimization of strategic synergy upon parent-subsidiary corporation synergy, the attention should be followed from the following areas: formulating reasonable strategic planning of the Group to realizes the maximization benefit; setting up a harmonious organizational culture to enhance corporate culture's attraction and cohesion; constructing intra-Group communication platform for internal knowledge sharing, application and transferring between organizations; improving incentive system to exert the subsidiaries' enthusiasm and creativity.