The Research On Management Control Of Enterprise Group

Enterprise Group is a combination which contains several independent enterprises that joint together by the capital. It always takes an important part in modern economy for its great big scale and strong capital. Because all members in Enterprise Group are independent and equal to each other on law, the parent company could only control the subsidiary indirectly through the internal management system, but not intervenes their business directly, In this circumstances, the subsidiary company may act out of parent company's expectation or even bad for whole enterprise group. In order to avoid the group risk caused by subsidiary companies' source abusing, it is necessary to set up an internal control system with which the parent company can control internal enterprise efficiently, make them cooperated to drive the whole group growing healthily. Meanwhile, this system could not limit or suppress the positivity and agility of the enterprise members.This article defined the parent and subsidiary company of the enterprise group, introduced some relative theory of their management control. Based on it, the characteristics and interactive relation are analylised, control system and target model is studied, and then contribution factors of the model are described. From these, an internal control system comes out, which is based on strategic control model and group management effectively combined with management and control, to realize favorable control and sourcing optimization to develop their cooperation strength and to realize overall targets.And then there is analysis on current management situation and normal issues of parent and subsidiary company. By actual cases, they raise solution ideas against the issues. At last, they propose the countermeasures based on the above mentioned analysis. That is based on the strategic controlled parent and subsidiary model, to build internal control system on the basis of group control- first, from the internal standing, sort out patent property relationship, improve their management structure, make clear rights and reliability of interest related parties, and develop reasonable layer resolution system to balance practical control and authorization. Second, build information control and transferring system to guarantee smoothly communication by advanced approach and to facilitate correcting error operation and strategies of subsidiaries and realize effective control through changing and cycle communication and error correction. Additional, layer inspiring system from directors, top leaders, management to workers is needed. Scientific effective inspiring will develop their activities and benefit team work to push the enterprise moving forward healthily and harmoniously.