Control Mode Of The Parent And Subsidiary Companies Of Enterprise Groups In China To Study

Two aspects are included in the design of management & control of parentcompany and its subsidiary: firstly, which mode(s) should the company choose andwhat are the considerations? Secondly, under the decided mode(s), how should thecompany allocate the powers between the two entities on strategy, finance, HR,investment, purchase, etc., and how should it establish a clear and reasonablemanagement & control interface through institution building, so that the parentcompany can have a good control of its subsidiary without overfull interference.Because of the special establishing process, the system of the parent companyand its subsidiaries in China has its own characteristics. It is very meaningful to do afurther research on this topic based on the current theories and reality of the enterprisegroup in China.This paper tries to do some analysis on this topic. Based on the review of thetheory and the analysis of the status quo of the enterprise groups in China, and theexperiences of the big MNCs in the world, this paper tries to design a good controlmode for China National Offshore Oil Company (CNOOC), and hopes to have someuse for reference for the other domestic companies.