A Case Study On The Construction Of Parent-subsidiary Management Control System Of GWE Corporation

With the fast development of the economy in China, as an important economic pillar, state-owned enterprises are growing stronger and stronger, especially; group enterprises are increasing year by year. Moreover, the cross-region extent of enterprises are becoming higher and higher, and the property right relationship is becoming more and more complicated, which has become a great challenge for enterprise management. In order to expand the corporation scale and to achieve its coordinated development, state-owned enterprise groups have to make clear parent-subsidiary relationship, and to reinforce the construction of group management and control system, so as to realize collectivization in the real sense.This thesis takes the case of the construction of GWE corporation management and control system as the subject of research. GWE Corporation is a listed corporation in Gansu province, and it is also a typical case of the binding listing of group corporation. GWE Corporation, after its listing, because of the lack of combing and shaping process of market competition, phenomena such as incomplete corporate governance structure, unclear parent-subsidiary status, and weak group management and control ability emerged, which has lead to insufficient potential development. Under this condition, GWE corporation started its three year reform of "5+2"management mode,"Five-in-one" development model since2009, establishing a classified management and control system with the property right as the tie and service tectonic plate as the focus, which has formed a road of transition from binding construction to modern enterprise reconstruction. And it has become a typical example of enterprise reform in Gansu province which is characterized by adjusting management system, integrating internal resources and realizing parent corporation management advantage.This thesis uses the method of case study to analyze the key factors of its success and to discuss its theoretical value as well as practice value by introducing the background of reinforcing parent-subsidiary management control system construction of GWE corporation, implementation process and operation effect, and by using theories like enterprise strategy, corporate governance, organization structure and parent-subsidiary management.This thesis, through analyzing the construction of parent-subsidiary management and control system of GWE Corporation, puts forward the suggestion for further optimizing the management and control system of this corporation and the revelation for reinforcing state-owned assets management as well as the parent-subsidiary management of state-owned enterprises.