Parent-subsidiary Corporation Management Control Research Of F Group

The parent-subsidiary company is ligament with property right, is aimed at maximizing the whole interests, and is focused on power division as the management control center. The parent-subsidiary company management follows the core concept of "contingency management, resource sharing and collaborative operation". The parent company manages and controls the subsidiary company by means of strategy, culture, resource allocation, supply chain management and so on.F group is a large high-tech industrial group which centers on the comprehensive utilization and development of non-grain raw materials and integrates scientific research, manufacturing industry and trade in one. It is the functional sugar leader in China, the pillar enterprises in the "China functional sugar city", the National Key High-tech enterprises, and the National key enterprises in biotechnology industry. Similar to other private enterprise groups, the F group is facing many challenges in the parent-subsidiary corporation management control, which restrict their further development. These challenges mainly include:1) the group company does not have perfect organization to manage the subsidiary companies, and the establishment of the functional departments in the group company and the subsidiary company is underlapping and overlapping;2) the subsidiary companies operate and manage independently, so those in the same production base may establish some similar functional departments, resulting in a serious waste in management cost and manufacturing cost;3) along with the rapid development of the subsidiary companies, the management control of the group company to the subsidiary companies become increasingly powerless, so the management control system of the group company should be strengthened.In this study, with the guidance of the parent-subsidiary company management control theory, I thoroughly analyzed the confusion that the F group is facing and the reform practice it has done in the parent-subsidiary company management control. If we retrogradely look at the reform that the F group did on the parent-subsidiary company management control system in recent years, we could find that it experienced three stages of reform. That is, the informationization of the management in integrated supply chain of the group, the optimization of the parent-subsidiary company management control system by introducing external consultation and the once again dependence on the comprehensive budget management information to ensure the achievement of the management consultation, and finally the effective strengthening on the centralized management control function of the group company. Afterwards, the F group has now established a relatively clear strong group-management control mode in administrative management type. As a result, these management reforms have greatly improved the company’s overall operating efficiency, and the effect of "1+1>2" is gradually showing up. Meanwhile, the group company, by the series of reform in recent years, also initially laid a good management foundation for its being listed in the future. In this study, I also made the analysis and the optimal design for the F group on its unified raising and optimal allocation in key resources such as capital and human, and on its problems in the company’s overall operating analysis and control foundation. At the same time, according to the F group is unified in the capital, human and other key resources on the financing, optimization, and analysis of problems existing in control, enterprise operation, and makes the optimal design.