Internal Governance Structure Optimization Research Of LJ Group Family Enterprise

Family business is a kind of enterprise form exist everywhere in the today’sworld, which has an unusual position in the world economy. It is not only active inless-developed countries or regions’ market economy, and also wide-spreading in thevery developed-countries or regions. Since1979, China’s private enterprise is in therapid rise, and according to the statistics more than eighty percent of the privateenterprises in our country is the family business, and family businesses in our countrythat take advantage of traditional family governance model have developed fornearly30years, and family business has now become an important part of marketeconomy in our country.However, at the same time, the family business has also exposed somedeep-existing problems. Most of the family enterprises in China that complete theprimitive accumulation, and experience short-time take-off in high speed are n’t ableto hold the unsustainable development, easily eliminated by the market. Maincharacteristics are presented as un-growing up and short life. To make our familyenterprises adapt to today’s socialist market economic environment, improve thecorporate governance efficiency, we must choose the appropriate internal governancestructure.However the internal governance structure and the quality problem havebecome the main bottleneck in achieving greater development for China’s familyenterprises,and whether we can effectively overcome it or not can be the key to fastergrowth and development of our country family enterprise.But due to the China’sspecific cultural and environmental impacts, solving the problems in the internalgovernance structure for family enterprises which has entered the growth stage isparticularly prominent.In this paper, through the analysis of case analysis, and the present situation ofthe LJ group internal governance structure, it points out the main problems of the LJgroup company internal governance structure at the growth stage as follows:1, thehighly-concentrated and closed company’s property results in production structureobstacles;2, management system obstacles risk company;3, the lack of incentive mechanism of employees causes the talent liquidity;4, backward cultureconstruction leads to the lack of innovation spirit of the employees. And it also putsforward the practical countermeasures to solve the problems of LJ company internalgovernance structure, mainly including optimizing the property rights structure;establishing professional management mechanism; Improving the incentive system,setting up humanistic concepts;building an open corporate culture.