The Research On Business Division Management Model Of LN Group

With the integration of global economy and the industry, the scale of business is expanding, companies have to integrate to form a diversified group of companies, this model has become a major presence in today’s economic operation of enterprises form; because of the distribution of resources, the distribution area of the market further increase the difficulty of management; company’s management should follow the "contingency control, collaborative operation" concept, to use different strategies.LN Group is a private group of companies whose industry is medicine, chemical industry, new energy, specialty glass, logistics, warehousing, real estate development and so on. Although through a series of management and control model transformation, there are many problems in the parent-subsidiary control, this has limited its further development. Corporation Board of Directors functions loss, lack of the Supervisory Board; Group departments function is not play well, it is difficult to provide support for management decision; the subsidiaries are so more that internal transaction costs is too high, it is difficult to play chain synergies and economies of scale.In this paper, base the control theory of parent-subsidiary, the company management theory will be applied to the LN group company-Division management, optimizating the design of the company management and control, improving the management and control measures. First is to clear the group-Division management and control model, the Group’s corporate governance structure adjustment, choose a relatively control mode; Secondly, according the class of industrial subsidiaries,we re-merged the solar thermal business division, the solar photovoltaic business division, the pharmaceutical division, the chemical division, special glass division, the tertiary industry Division, to get the economies of scale and synergies; according to the industrial development of the external environment and internal factors of the different division chose a different control modes; Finally, depending on the control mode, make a strategy, human resources, information technology, cultural, financial and other management and control means to improve the company management and control system construction of the "hardware" system, as well as the company management means "software" system, established LN Group’s overall management and control system.