The Analysis Of The Mother And Child Company Management And Control Pattern Of The First Automobile Works

Our companies are implementing the national strategy of going out, enterprise groupsare more and more diversified, and the scale is also growing. The control mode is an issuewhich any large enterprise groups must consider when they implement the strategy. In theprocess of establishing a modern enterprise system and implementing internationaloperations, how to build an appropriate parent-subsidiary management and control model,and enhance the management and control ability of enterprise group parent company are asubject in front of enterprise group.The rapid development of automobile industry in recent years, has become an importantpillar of our national economy. After nearly ten years’ rapid development, China has becomethe world’s largest auto market, products are increasingly rich. However, our country is onlyan automobile production and marketing power, not a powerful automobile country. Theindependent car enterprises not only to increase product innovation, improve product quality,more attention should be paid to improve the management level of the enterprise. Especiallyafter the implementation of large-scale development and related diversificationdevelopment，most of the related diversification management and group management, so,enterprise management mode is related to the enterprise’s management level. Enterprisemanagement mode is related to the enterprise’s management level. Based on the research ofthe management and control mode of parent company and subsidiary company of FAWGroup Corporation as an example, and put forward the constructive proposal.The current forms of national economy and the requirements to central enterprises arebriefly analyzed and expounded firstly and the relevant tasks which FAW faces and needs tobe solved in the aspect of controlling parent and subsidiary company are put forward as alarge state-owned enterprise. Secondly the purpose and significance of this paper isindicated,which fish out the control mode of parent and subsidiary company of FAWthrough the real practice in the aspect of parent and subsidiary company control mode ofoutstanding enterprises in auto industry. Then the theory of the control to parent andsubsidiary company is overviewed, and the theory supported to solve the problem issearched to provide theoretical basis for the problem solving thinking through clearing thoseconcepts such as Enterprise Group, Parent and Subsidiary Company and Control Mode, researching those correlation theories such as Property right Theory, Principal-agent Theoryand Contract Theory and overviewing the theory of the control to parent company. Then thecontrol modes to parent and subsidiary company of three major Auto Companies (GM,Volkswagen and Toyota) are researched and compared comprehensively, the advantages anddisadvantages and realistic significance and the enlightenment to the auto industry of Chinaare obtained. Finally, the current situation of control mode of parent and subsidiary companyin FAW group is analyzed, the question existing in which is indicated and the author’sproposal and implementation ideas are proposed.