On The Strategic Position Of The Parent Company

What should a parent company do and how to achieve its goals? What should a subsidiary do and how to achieve its goals? Many high-ranking executives of Chinese enterprises don't know how to answer these questions correctly, neither do they know how to exercise strategy management in enterprise operations . This basic strategy of business positioning has been bothering many Chinese entrepreneur ever since the transition from the planned economy to the market economy . We can find a lot of mistakes in their strategy management , for example, parent company conduct sales directly, in the meantime, the subsidiary make the decision of large investment independently ; Some parent companies and their subsidiaries establish same organization format etc. These appearance represents the present situation of strategy management of some Chinese enterprises.This thesis touches oupon the operation of two enterprises which achieved great success in China, one of which is China Grand Enterprises Group Company whose assets has reached 4 billions RMB from zero five years ago, another one is Italian Zambon Group China Subsidiary which achieved its sales volume from zero to 200 million RMB within 2 years. Through the comparative analysis of their strategic position , the author tries to define the right business position as follows: the parent company should do capital management and the subsidiary should do products management.This thesis also analyses the eight serious disadvantages of management of China group enterprise which result in wrong strategic position. Based on his own experience, the author compares the differences of HR management, enterprise culture and business ideas between two case enterprises under correct strategic positioning . One we can find the great gap of operation between Chinese private enterprise and foreign transnational corporation.In the end of this thesis, the author emphasizes the importance of strategic positioning of enterprises, points out the correct business position of parent company and subsidiary. The thesis also tells us that Chinese entrepreneurs should learn a lot from west transnational corporations in order to develop our own transnational enterprises in the near future.