Parent-subsidiary Corporation Management Control Research Of HL Group

With the development of economy and the expansion of the scale of the enterprise, the traditional form of enterprise have not adapted to the external environment. Parent-Subsidiary corporation management system gradually becomes the main form of organization. Parent-Subsidiary corporation is taking the property rights as link, the maximum profit as the goal, power dividing as management control core. Parent-Subsidiary management is a kind of system management, following the "contingency control and Collaboration" as the core idea, and take strategic, culture and some other measures to take control.HL group is in the major of Hotel and Dining, and take commerce, decoration market set, tourism, logistics, and other business for one of the private enterprise group. There are many problems in its Parent-subsidiary management system which restricting its further development. Firstly, the parent-corporate hasn’t perfect governance structure, board of directors can’t function well, and board of supervisors hasn’t been built. Secondly, functional department didn’t set well but existing intersection and missing. Thirdly, the subsidiaries was set up too many to play the coordination effect, scale effect, and tax avoidance. Finally, the parent-corporation located in management center, which played an important role in the group development history, but obviously not to meet the current group development. Some subsidiaries are out of control.This research designs Parent-subsidiary management system of HL group following the guide of related theory. Firstly, this research optimizes Parent-cooperate governance structure. The group company locates in service, guidance and coordination center, with getting away from daily management, and then designs the organization structure. Secondly, HL group need to found four subsidiary-cooperates named hotel company, business and commerce company, and agricultural products company with subsidiaries belongs to a class merging, so to play the scale and synergy effect. LM ecological garden management company also need build. Thirdly, according to the subsidiary industry situation and the development choose mode choice, taking the hotel company, business and commerce company in govern-control mode, taking agricultural products company in independent-control mode, and taking LM ecological garden management company in govern-control mode changing by management-control mode as developing. Finally, this research makes strategic, culture, finance and some other controls measures according to the different control mode.