Research On The Construction Of Financial Sharing Center Of Multinational Corporations

In recent years, the development of the globalization on both economy as well as enterprises has attributed the multinational companies constantly seeking and exploring new management mode in China. Along with the rapid development on information technology and the sequential innovative management ideas, Financial Shared Service Center being as a new management model, has been applicable and available for local and foreign large enterprises. Financial Shared Services Center contributes on the reduction of operating costs as well as achievement of high efficiency on business while those companies have already implemented FSCC. It can significantly reduce the business risk,and improve the company’s core business competitiveness. Since Financial Shared Services in foreign countries have been relatively well developed, they are at earlier stage of development in China. Establishment of Financial Sharing Service Center theoretical basis and practical operation is incomplete for local multi-national companies. Therefore, A scientific and effective Financial Sharing Service Center has become a significant topic.On the basis of literature research from local and abroad, it is known that this article focused on multinational company B and evaluated the effects of the creation as well as implementation in terms of Financial Shared Service Center. It evaluated and summarized the value and critical success factors of Financial Shared Service Center for company B.Therefore, it put forward the problems & questions during the implementation process and the solutions have been drawn up.This article discusses the focused topics from six parts. Firstly it is the introduction,which depicts the background, significance and purpose of the research of the author. It put forward the research contents and methods in terms of studying and referring of the results from local and abroad experts. The second part is the result of the research on the principle of Financial Shared Services Center. This paper introduces the conception and outlines the application of Financial Shared Services. Thirdly, the construction background of company B Financial Shared Center has been analyzed through the presentation on the profile of company B. And its financial management problems committed has been analyzed, and the necessity of establishing Financial Shared Center for company B has been emphasized.Fourthly, building of Financial Shared Services Center of company B and the strength as well as weakness has been considered in the thesis respectively. It is analyzed that the framework of company B in terms of the target, organization structure, as well as businessprocess and operation management. Fifthly, the effects of Financial Shared Center of company B have been evaluated. It is concluded that the implementation of company B’s Financial Shared Center contributed to the key successful factors of the FSSC. Therefore,it is recognized that the best solution will be suggested. At last, this article outlines the prospect to the multi-national companies. It is hoped that the full text will be of great assistance for the companies as a reference for its achievements and deficiencies from this paper. We wish the research will play a significant role on the implementation of Financial Shared Services Center in multinational and domestic companies, and can help to improve the local companies of the strength and competitiveness.