Research On Strategic Control Of Parent-Subsidiary Corporation Based On BSC

Along with the rapid development of the Enterprises Group, the research on management of parent-subsidiary corporations of Enterprises Group becomes popular. Strategic management as the core of management of parent-subsidiary corporations is important to the development of Enterprises Group. However, there are many problems in the strategic management of parent-subsidiary for its unique organizational form. Investigations revealed that the most reason for the failure of the strategic management is strategic control.The deference of the strategic control between the parent-subsidiary corporations and single corporations is the hierarchy, and each level has its own content of strategic management, so the system of strategic control of parent-subsidiary companies is very complicated. There are horizontal and vertical problems in the strategic control of parent-subsidiary companies. In the horizontal aspects, the extent of strategic control of the parent company is inadequate, often only concerned with the implementation of the strategy and ignored the adjustment of the strategy. In the vertical aspects, there are contradictions between the extent of the strategic control of parent company and the flexibility of its level. Too much control of the parent company leads to the subsidiary company lack of independence.This paper focus on the horizontal and vertical problems of strategic control of parent-subsidiary companies. By means of theoretical analysis, proposed the content of strategic control based on the entire process of strategic management. Including setting strategic goals and indexes,setting plans and budgets,environment supervision,monitoring strategic indicators and correcting deviations. Balanced Scorecard and strategic map were applied to the above-mentioned content of the strategic control, including using strategic map setting strategic goals,using BSC setting indexes,combining BSC and plan,monitoring BSC and budgets and so on. By means of BSC and strategic map, strategy was translated into workable language. The system was applied in the three levels of the strategic control of parent-subsidiary companies. Through monitoring strategic map,BSC,plan and budgets of the parent,subsidiary companies and functions, the strategic control covering each level of the parent-subsidiary corporations and its whole process of management of strategy, then the horizontal problems were solved. The dissertation investigated 57 Enterprises Groups and collects 140 company's questionnaires. By means of empirical analysis and on the base of the BSC, the strategic control of centralized management, decentralized management and the other types between them was proposed. Then the vertical problems were solved. In conclusion, by means of the solving the two basic problems of the strategic control of the parent-subsidiary companies, the dissertation dreamed up a systemic framework of strategic control which based on the BSC .