The Research Of Controlling Between The Parent Company And The Subsidiary Company

Through the case analysis of the control system between the parent company and the subsidiary company of Shanxi Xinghuacun Fenjiu Group Liability Company limited, this article is to delve into the selection of the control modes between the parent company and the subsidiary company of Chinese enterprises and the comprehensive application of the control measures. It also aims at the study of the control methods and measures between the parent company and the subsidiary company at the angle of business process restructuring in a bid to elevate the control ability of the parent company.After the analysis and study of the control modes between the parent company and the subsidiary company both at home and abroad, the control modes between the parent company and the subsidiary company can be divided into three categories: centralized management mode, de-centralized management mode and the combined management mode of the above two. Referring to the reform of the control system between the parent company and the subsidiary company adopted by Fenjiu Group, I hereby put forward the topic that the selection of control modes between the parent company and the subsidiary company is influenced by both inner and outer environment and must make in-time adjustment and improvement with the change of environment.With the selection of the control mode, the matching control measures must be taken to guarantee the realization of the strategic target of the parent company. The parent and subsidiary company control measures can be classified as culture control, finance control ,human resource control and performance control etc. Different control modes will adapt to different control measures.On the basis of the control measures, more stress will be given to the realization of coordination effect in the group including the function position, obligation classification and authorization definition to the parent company, subsidiary company and other institutions and the appropriate regrouping and restructuring of the business process in order to secure a powerful operation system for the parent and subsidiary company control system.