Establishment And Improvement Of The Management&Control Mode Of HL Group

Since China’s entry into the WTO, the market has seen increasingly fierce competition with the conglomerates as the main force and even the dominator of the market economy. The company grows gradually, it is an effective way to enhance competitiveness and accelerate development by following the path of conglomerate operation and business scope expansion, setting up conglomerates. During the course of company development, the transition from extensive growth to intensive growth is under rising pressure. Confronted with rapid economic growth and rocketing globalization, deepening reform, optimizing and improving the management&control mode become the core issues of the reform and development of modern conglomerates. Currently, domestic and foreign conglomerates attach significant value to their management and numerous accomplishment and works of studies on business management emerge in endlessly. Nevertheless, the research on management&control of conglomerates is inferior in amount, especially on the merging and reorganization of state-owned enterprises, as well as how to, in the new management framework, define the corporate governance structure, give play to the functions of the conglomerates of management and control, dissolve the risks of the group and cut management costs through the controlling measures of internal authorization, flow, organization, risk, corporate culture and development strategies etc. Although some conglomerates have carried out a variety of beneficial practical exploration in management&control of the group in recent years, some problems in this respect still stay unsolved. Some groups operate as "a group in disunity", which fails to give scope to the advantages of the group and confronts with all sorts of crisis in critical market competition. In a view of better carrying out organizational reform and clearing up the fundamental problems of management&control of the group, it is of great urgency to establish a scientific and reasonable management&control mode, follow the requirements of modern enterprise management, improve corporate governance structure, reinforce the dynamics and overall competitiveness of the enterprise and push forward the transformation of the group. Taking HL Group as an example and based on the history of development of conglomerates, this essay conducts a study on the management&control mode of parent company and subsidiaries suitable for enterprise development. This essay may function as the reference and guidance for state-owned enterprises M&A and reorganization, the establishment and improvement of the management&control mode of conglomerates.