A Study Of Strategic Management And Control In Luxin Group

Strategic control is an extremely important sub-system in the parent-subsidiary company system. It decides the matching ability between the parent and the subsidiary company, and to a certain extent, that is the strength carrying out the strategy and make significant influence to the functional potency of the parent-subsidiary company system. As a large-scale state-owned investment holding company, Luxin Group takes investment, finance and capital management as its main business service, and according to its overall development target, it determines its developing strategy as: taking the financial industry as core, the investment and capital operation as support, to become a highly competitive local financial investment holding group against time. Its parent company aims to develop the Strategy and Investment Center, the Financing Control and Capital Operation Center and the Human Resources Disposition Center. Each subsidiary company works as Marketing and Profits Earning Center, forming unique progress directions according to its business orientation.This thesis analyzes the situations in the phases of strategic formulation, strategic implementation, strategic appraisal and strategic adjustment of the Luxin Group, especially scans a series of systems about responsibility, authority and benefits between the Group's parent and the subsidiary companies which shows that in Luxin Group, the definition of the strategy is clearly defined, the orientation of it is rational, the internal management is comparatively normative. But during the implementation process of the strategy, the situation is various in subsidiary companies. The development is imbalanced and there is big different of the effect, and the implementation dynamics is insufficient in some subsidiary companies. Analysis result indicates the insufficiency of the strategic controlling consciousness, nonstandard control system and inadequate enforcement of control and management in the operational practice is the main reason causing the imbalanced development of the subsidiary companies and hindering the Group's strategy realization. Taking the main problems in every phase of strategic control under consideration, this thesis combines theory with practice, proposes optimized strategic control solution to parent and subsidiary companies of Luxin Group, clarifying the power and responsibility of different strategic layers, perfecting the organizational structure of the Group, standardizing the control flow, promoting the control level. The specific measures of the solution mainly include the following points:The parent and the subsidiary companies must be clear about their strategic orientation, clarify their strategic power and responsibility from different layers, which means each level has its distinct specialty, every company should know its place and do what it is expected to do competently; The parent company should consummate the organizational structure related to the implementation of the strategic control, make the organization fulfill its duty as the policy center, management center and guide and service center; It should formulate and modify the strategic control system to promote the standardization, processed management and systematization; The functional direction orientation of the parent company should be converted into professional, service and cooperation, displays Luxin Group's strategic effect of cooperation from aspects as finance, resources and management; It should also establish expedite information channel as well as strategic early-warning mechanism, and value the result of the strategic implementation work to discover the deficiency and make the prompt adjustment and consummation to it.