Enterprise Groups, Parent-subsidiary Controlled Study

Enterprise group, based on high socialization of production and considerable development of market economy, is one of the forms of expression for production centralizing and capital gathering; Enterprise group, based on high development of modern enterprise, takes core enterprise as main body through relations of property right and other coupling tie and set up economic coalition with many corporate enterprises. Foundation of enterprise group need coordinate the relations of enterprises with two forms—market and organization at the same time and achieve mutual supplement of enterprise organization and market mechanism. So it can improve the whole function of itself. But in system of parent company and its subsidiaries, subsidiaries are the equal enterprise corporation with parent company. Parent company can't butt in business of subsidiaries in many questions and the business of subsidiaries is independent.Even as the question of principal and agent in modern companies, separate relation between parent company and its subsidiaries must cause the action that subsidiaries don't follow and even go against the intention of parent company. For preventing subsidiaries from abusing resources and promoting them to cooperate with the whole target of group, proper controlling mechanism should be adopted for subsidiaries to increase the whole performance. So taking parent company view, studying how parent company manage and control subsidiaries, designing management control forms of subsidiaries to dispose resource of group and bringing into play whole advantage of group are the questions which enterprise group should think over carefully.During foundation of enterprise group in China, it has the feature of opposite nature because of comprehensive participation of the government. And this makes management control of enterprise group face a series of unique questions. Though achievements in researching control theory abroad provide reference and guidance in the practice of guiding management control of enterprise group in China, but on one hand point of view the result of study of foreign scholars are different from ours; on the other hand the background of foundation of enterprise group in China is different and the features after foundation is also different, so how to make use of availableachievements in research, according with characteristics of enterprise group, taking a parent company view, researching form of management control of parent company and its subsidiaries from combining resource of group and seeking the whole profit of group, and how to choose more suitable form of management control according to elements as parent company and its subsidiaries of group and design all kinds of operation modes of form of management control are necessary and meaningful.This article adopts viewpoint of system and method of mathematical model, makes use of game theory, knowledge of information economics and AHP method, absorbs available achievements in research, establishes distributing mode of group and its subsidiaries, achievement appraisal system for mangers of subsidiaries and mode which income depends on achievements and summarize the available modes which parent company controls its subsidiaries by the numbers; Through analyzing limitation of traditional forms, this article educe the necessity of foundation of group shared vision. Finally, this article analyzes the foundation of control system of group.Through the research and analysis of this article, we can get the following conclusions:1 -. Enterprise group in China has different features and difficulty of control of enterprise group. So we must draw on the theoretical experience of developed market economic countries, at the same time we also research control modes and methods suitable for ourselves.2^ Enterprise group should consider with multipoint of view when designing specific control modes, design control mode by the numbers and pay attention to flexible and synthetic application.3 -. Traditional control mode based on principal agent theory has inherent limitation, so enterprise must attach important to application of soft control mode.