| With Chinese market economic developing and the reform of state-owned enterprises deepening, more and more enterprises develop the group scale. But the time of the enterprise group forming is short, the accumulation of experience in group operation is not enough. More common presence the problem in management and control effort to Groupowned enterprises is weak,not give full play to the advantages to the Group’s operational. After the state-owned enterprise group is established, how to make full use of the group’s own system, advantage of the mechanism and overcome the drawbacks inherent in the state-owned system is become a management difficulty. And in this process, selecting the parent and subsidiary companies control mode is appropriate or not, more is to improve group management efficiency and operating results, one of the important prerequisite to gain the core competitiveness.Baosteel Group Co. Ltd. is a large iron and steel enterprise, founded in November 17,1998. And it is the Baoshan iron and steel(Group) Company as the main body, mergered and reorganized of Shanghai metallurgical holding(Group) Company and Shanghai Meishan(Group) Company. At present, the performance of Baosteel Group is the best in China iron and steel industry and it is the strongest comprehensive competitiveness of iron and steel enterprise. As Chinese leading iron and steel enterprise, Baosteel always catching up to international standards, committed to enhancing international competitiveness, continue to explore the enterprise operation mode in accordance with the market economy rules and promote the innovation of the management system. At present, Baosteel is in an important period of its development, the iron and steel industry is facing a complex and ever-changing external environment, it puts forward new challenges to the parent and subsidiary companies control mode of Baosteel group. Therefore, scientific selection and optimization control mode of parent subsidiary company of Baosteel Group not only have the important practical significance and guidance function. And for the other central enterprises, even the whole country of state-owned enterprises can provide good experience.First, we will describe the background, significance, contents and the methods of the research. Also review the parent-subsidiary control mode theory to form the theoretical basis of the parent-subsidiary control mode in this paper. Second, through the studying about the management and policy documents of Baosteel and from the Baosteel actual situation, the paper will analysis Baosteel’s existing parent-subsidiary control mode in order to find out the main problem existing in the management control process. Finally, starting from the problems existing in Baosteel’s parent-subsidiary control mode, we will optimize Baosteel Group parent-subsidiary control mode by developing and supporting a series of management control methods. The analysis think that the parent condition of Baosteel emphasizes on administrative management, for their respective diversify company, the control mode is single, and the core process management needs to improve. Subsidiaries in accordance with the parent company are accustomed to act in command, lack of market resilience, and there is a gap with the international enterprise group. In this paper applies to Baosteel Group’s new classification management and control mode(take a different control mode for different business sectors). And also proposed corporate governance improve program and recommendations to improve the core management processes. Scientific control mode of enterprises need to establish a set of management system to support its effective operation, including the group organization structure, core process system, appraisal system. For management and control system, for example the construction of Baosteel Group, it complete shows the design of content and procedures in control system. It has a certain significance for the construction of large-scale enterprise group of scientific management and control system.The innovation in this paper is based on Baosteel’s unique ”Stronger iron and steel industry, moderate develop diversified industries” strategy mode, different business sectors to take control of differentiation. In this study we hope to improve the level of parentsubsidiary control mode of Baosteel Group and to form a standardized and scientific management environment in Baosteel Group though optimizing the company’s current parent-subsidiary control mode. |
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