Research On The Control Environment Of The Transformation Of Family Business

Family enterprises as an important part of the private economy have become a significant force in the development of the national economy.However,with the evolution of family business life cycle,control environment defects become one of major hindering factors for the transformation of family enterprise.Based on this intention,this thesis discussed the relationship between the control environment and the transformation of the family business.First of all,this paper makes an analysis and research to some documentation related to the control environment and the transformation of family enterprise.Making a literature review on the development and characteristics of family enterprises,we analyze the causes and obstacles of family business transformation.Secondly,based on COSO control theory and the enterprise life cycle theory,we analyze the six aspects of family business transformation in the organizational structure,development strategy,human resources,corporate culture,social responsibility and internal audit control environment,thus summarizing company's transformation path.Thirdly,by learning the case study of Zhejiang CHINT group,the paper verifies the feasibility of the transformation path of family business.The nature of the family has advantages in the start-up period.The transformation of family business power source is the expansion of enterprise scale.Different life cycle has different key control factors.The family enterprises need to develop reasonable planning to control environment transformation,so as to overcome the defects of the control environment.Last but not least,this paper summarizes the relationship between the six elements of the control environment and the transformation of family business.Enterprises should set up the consciousness of innovations and grasp the opportunity of transformation.At the same time,the family business needs to attach importance to the relationship between the control environment and the transformation of family business,so as to realize the sustainable development of family business.