Design Of Group Management And Control Model For XYZ Co., LTD

When enterprise develops into group, how can the group headquarter implement effectively management and monitoring the subsidiaries, how to effectively manage a parent-subsidiary company? The primary task is to choose a parent-subsidiary management and control model based on its variety of factors, such as industry characteristics, the development strategy, organization size, as well as entrepreneurs’leadership style, etc. in order to determine the basic criteria and the fundamental principles for the parent-subsidiary enterprise company. With the increasing development and growth of the enterprise group, selecting an appropriate control model is particularly important to the group. Currently, that is also becoming a common problem faced by many rapid growing enterprises.First of all, the article defines the concepts and contents related to the group management and control, introduces three representative types of parent-subsidiary management and control model, the financial control model, the strategic control model and the operational control model, and describes its logical structure simultaneously.Secondly, it introduces and analyses the XYZ group current management model status. And it clears the influence factors and principles on the management model selection for the parent-subsidiary company. Then discuss on how to innovate the group management and control model.Finally, this article focuses on the design of group management and control model. Mainly including three aspects:1. How to allocate and distribute the power in strategy, finance, human resource, investment, procurement and other areas between parent company and the subsidiaries based on the selected control model.2. Architect a clear and reasonable control interface between parent company and subsidiaries through construction of business processes and internal management systems. Ensure the parent company to realize its implementation of control, without limiting the subsidiaries’business initiative at the same time.3. Summarize the design steps and enlightenments of group management and control model at the end of the article.This article explores and tries on the research of group management and control model improvement, and expects to provide a valuable reference on the designing, implement, and improvement of the management and control model for the domestic group companies.