Research On Parent-subsidiary Company Management And Control Mode Of China West Airport Group

In recent years, the reform of the civil aviation industry has become further and the airport groups aim to be better, stronger and bigger. The major airport groups’sustainable development strategy is that "focusing on the management and operation of airports and airlines, as well as various industries coordinated development". While, the understanding of group management control is not exactly correct, and the management control method has not actually operated in substance. So there are many parent-subsidiary management and control problems in large state-owned enterprise groups. These realistic difficult problems need to be solved urgently.China West Airport Group grows rapidly in recent years, governing19airports in four provinces of Shaanxi, Ningxia, Qinghai and Gansu. It also has9subsidiary corporations involved in the field of advertisement, construction, transportation, hotel, real estate and information technology. This paper uses research methods of parent-subsidiary management and control theory, classification method, case analysis method and so on. It points out that the parent-subsidiary corporation management control is based on the power division between the parent company and the subsidiary. China West Airport Group develops rapidly in recent years, and also has many problems in the actual management process. Among which the most important ones are:the company governance structure is not perfect, the administration management control mode is not very suitable, subsidiary shows strong dependence of the parent company, and the incentive and constraint mechanism is not sane and so on. According to the analysis and diagnosis of the problems, this paper points out the proposal of China West Airport Group management and control system. The parent company should divide the subsidiaries into three categories, depending on the strategic position, the industry relevancy and the development stage of the subsidiaries. And different kind respectively applicable operational control mode, financial management and control mode and strategic control mode.This paper puts forward the proposal of classification management recommendations in accordance with company characteristics, based on comprehensive research of the existing results. And also some methods to improve the efficiency and effectiveness of the subsidiary company control, such as standardizing corporate governance mechanism, improving subsidiary company performance evaluation system, establishing the core management processes and so on. This research conclusion has a certain reference value to China West Airport Group. Classification management and control is scientific and operable, it has a lot of positive significance to promote the internal management control system and its efficiency, and to achieve the overall strategic goal of China Western Airport group.