Study On The Ningxia Wanhe Group’s Evolution Of Corporate Governance Model

Wanhe group in Ningxia are typical representatives of the small and medium sized family businesses in Western China. With the development of enterprises, it has been managed as family enterprise model and in this way forming a good accumulation,At this stage, diversified and group development Wanhe Group has produced the following puzzles on the choice of enterprise management models:continue the old model or adopt the modern enterprise system,Establish modern enterprise?Domestic research on family enterprises, focusing on how to help them establish enterprise structures which in line with modern management system.But Family management be seen as backward and low efficiency. This view often ignores irregularities in the external environment of corporate governance and the internal advantage of family management models, there is no doubt. To be bigger and stronger, specialized managed model (external models) would be the ultimate choice of most family enterprises. But corporate governance is not immutable when the group is developing, it is not mean you must choose one between these two models.But should be combined with specific and practical situation for standardizing enterprise operations, family enterprise need choose their own stage of development of managed models.Wanhe Group’s evolution from family management to specialized management model, there have been irregular in structures and shortage governance issues, in family enterprise the systems between family and enterprise have a tremendous contradiction, it is the Western representative of the typical small and medium corporate governance in family management.It has got some research themes by focusing on Wanhe Group’s Corporation governance issues, on the basis of the research results at home and abroad, evolution of the corporate governance model of family enterprise with combination of family enterprise’s life cycle theory, family management model should be used in the family business start-up period; Family business growth, companies have to combine family and professional modes of governance (middle management) model; Maturity in family enterprises, family enterprises meeting the requirements of the modern enterprise system should be established specialized governance model.On the basis of the above analysis and research,and stages of development by the group in this article as an example, from family and Corporation governance model of common mode conducted a study on the evolution.Laying the foundations for Wanhe group professional governance, It has significance for corporate governance issues of small and medium enterprises in the Western China.