Research On The Management And Control Mode Of J Investment And Development Company

The internal control mechanism of China's enterprise groups, esp. for the state-owned enterprises, is based on the Three Method proposed by Gould Michael; they are strategic control, financial control and strategic plus financial control. With the increasingly intense market competition, the Three Method is no longer adapt to the actual needs of enterprise management as they no exceptionally ignore the importance and necessity that parent company should supervise subsidiary to identify and avoid the business risk. The Chinese government founds the local state-owned investment company in a particular market and policy. These companies have become a certain scale of investment groups rely on policy support and resources support. However, within the difficulties in managing, these company groups are showing "sets without groups" with inefficient management. There is great possibility that once the policy support and resources support stop being implemented to these groups, as a result, they will lose in free market for their weak competitiveness.With the deepening of the reform, these state-owned companies should ASAP establish and implement the modern enterprise system, improve the management level of groups, optimize the group management, and according to the group management and professional management model, define the functional positioning and management boundary for the parent company scientifically. Then, these companies could strengthen their competitiveness.Therefore, this research is focusing on the management and control mode of J Investment and Development Company, combing the relevant theoretical research on the strategic management, risk control, and financial control mode, in perspective of different ownership, put forward the improvement scheme of the local state-owned investment company groups, has certain practical significance and theoretical significance.