Group Control Study Of The Subsidiaries

With the continuous development of global economy and corporationdevelopment, the scale0f group company and its size to a certain extent determine thecountry’s economic strength. Since joining the WTO in2001, group companies arerapidly developing and many large-scale group company emerge out.Thesecompanies,which play important roles in promoting economic development in ourcountry are growing and developing in the fierce market competition, and forms abatch of internationally competitive group companies.The group companies’ management and control to its subsidiaries relates to theoverall level of the group company and its competitiveness. How to effectivelystrengthen the controls subsidiaries has become the focus of the attention anddiscussion in theory and practice. This article, the author applies some theory resultsto practice and fields investigation for several large corporation. On this basis, theauthor proposes the thought of management and control,which needs determining theappropriate strategy, establishing the responsibility center and working to the key ofmanagement and control.At the same time，the author thinks that the thought shouldneed assistance with the theoretical system by appropriate control mode and means.This paper mainly adopts the research methods of normative analysis and caseanalysis. First, this paper analyzes the relevant literature of group companies’smanagement and control to subsidiaries, define the relevant concepts on the object ofstudy,and analysis of the relevant theoretical basis. Second, this paper analyzesemphatically analyzes group companies’s management and control to subsidiariesfrom two aspects of external factors and internal factors. Third, based on the analysisof the influencing factors, this paper builds system framework of group companies’smanagement and control to subsidiaries,including the construct of thinking, theselection of the mode and the usage of the principal means.At last, on the basis of thecontrol system framework, this pape analysis the condition of Yunnanbaiyao group’smanagement and control to subsidiaries and puts forward the existing problems andsolving countermeasures.The main features and innovation of this paper are in the following points: Firstof all, this paper uses the economics theory, corporate governance theory, propertytheory and contract theory to research group companies’s management and controlto subsidiaries;secondly, based on the analysis of influence factors of group companies’s management and control to subsidiaries, this paper raises the thought, themode and the focus of group companies’s management and control to subsidiaries;atlasr,this paper gives a case analysis of yunnanbaiyao,and demonstrates the feasibilityand effects of the theory.