Control Strategy Xx Group-based Parent Companies And Subsidiaries

Nowadays, with the development of the economy and enterprises in China, a large number of companies are confronting with the challenge of the parental-subsidiary company control; meanwhile, such control is also a worldwide difficult problem. The latest trend of the economic development in the world and China demonstrates the significance of such problem in different aspects. The parental company sets up its subsidiary companies based on the strategic consideration for the development of the whole enterprise. The subsidiary company plays an important role in the strategic plan of the whole enterprise and it's subordinated to the strategic demand of its parental enterprise. Therefore it's significant to study how to control the parental-subsidiary company from the aspect of enterprise strategy.The parental-subsidiary company is quite different from the traditional enterprise in the organizational structure and administrative manner, so the traditional management theory is subject to the frustration in the process of designing and operating the novel organizational structure. Facing the changes of administrative framework and operational manner, we have to absorb the soul and essence of the classical management theory to determine the strategy of enterprise development and the position and relationship of the parental-subsidiary company, and also, combining some effective management methods in practice, how to design a control mode based on the parental-subsidiary company and form a novel theory and methods to manage and control the parental-subsidiary company so as to promote the enterprise development, is also a challenging and significant topic.The author has been in charge of the management of subsidiary company in the XX Group for years, so he has much experience in how to control and manage the parental-subsidiary company. This thesis, using the XX Group as its research subject, based on the plenty of relating references, combing the author's practical experience and making use of the theory of traditional management and parental-subsidiary company control as references, analyzes and studies the parental-subsidiary control in XX Group from the strategic aspect , seeks for an effective method of parental-subsidiary control and constructs a novel system for such control in XX Group. This paper tries to solve three problems as following: how to form and perfect the scientific and reasonable system of parental-subsidiary control in accordance with the requirement of the strategy of the whole enterprise; how to treat appropriately the relationship between "centralization" and "decentralization" to balance the interests of each party; how to make clear the strategy of enterprise development and the position and relationship of the parental-subsidiary company, and designs a control mode based on the parental-subsidiary company. It is hoped that this paper will be able to make contribution to the development of the system of parental-subsidiary control in XX Group, and can be used as reference for other companies so as to promotes development of Chinese parental-subsidiary companies.