Study On The Management Control Architecture Of NR Group

Due to the rapid development of modern social economy, many single firmscollaborate as economy conglomerates through different ways, and more and moreenterprise groups are booming on a global scale. Enterprise group is becoming the maineconomic form and playing more and more important role in social economy of manycountries including China. And the management control of enterprise group is alwaysthe hotspot and big challenge in business circle and management academia.NR group is a large-scale enterprise group, which is playing a very important rolein the power industry of China. However, as the group is now trying to operate in amuch higher level, and the tremendous changes happened in domestic and overseamarket, the group is faced with new challenges and opportunities. These are allproblems needed to be solved in a very short time. Therefore，design the appropriatemanagement control architecture according to the characteristics of enterprise groupsand industry trend; Find the relative balance point between centralized and separatedmodes of enterprise governance; Fully leverage the initiative and enthusiasm of thesubsidiary companies, while keeping the management control power of enterprise groupheadquarter; Design the sound and effective enterprise organization structure andconsummate and enrich the management and control methods. These are questions thatneed to be solved in the future development of the group.Based on the deep research on the domestic and oversea theories of enterprisegroup and management control, the current problems of management controlarchitecture in NR group are analyzed by investigating the external environment,strategy, organizational structure, subsidiaries’ business, management control mode andmethods. Furthermore, through referring to the successful cases of global famousenterprise actions when facing with similar situation, the new strategy of businessdevelopment of NR group has been suggested in the paper. And finally, the newsolution of management control architecture of NR group is proposed with theelaboration of the advantages, including several important parts like the new functionalpositioning of headquarter and subsidiaries, the updated organizational structure, thenew management control mode, the more complete control methods, the managementcontrol of research and development as well as marketing and sales. This paper aims to find a pragmatic and effective management control architecture for NR group. Theoutcomes obtained are of general significance to some extent during the activeexploration in the process of the strengthening enterprise management.