Case Study On Control Mode In Financial Companies

As the industrial chain of financial service pilot project has been established in five financial companies in China, external monitoring institution relax restriction on membership of the debt underwriting to the financial companies. And the effect of promoting business group’s chain’s value in financial companies will become more prominent. Business group adopt the suitable control mode to the financial companies in strategy, people and organization, business and finance, which is conducive to exerting the function in financial companies and promoting the realization of strategic goals in business group. The paper aimed for optimizing business group’s control mode and making a contribution to its management.In this paper, case study method was used to introducing the relationship between Financial Company A and its relative department about key control link, such as strategy, people and organization, business and finance, by which it started a further study on financial companies’ control mode. Firstly, the paper introduced industry background and Company development situation of Financial Company A, and it did a brief introduction on current control mode in Financial Company A. And then, the paper discussed the purposes of the study, and it concluded and summarized theoretical basis of the case study, and it analyzed the problems in Financial Company A’s control mode through the comparison for representative several financial companies in industry. And the paper put forward the corresponding improvement suggestions. In the end of the paper, the epilog gave a summary of the whole thesis. The case study has found that many problems still exist in Financial Company A’s control mode. Firstly, Financial Company A was not aimed specially at monetary assets for industrialization of strategic management to meet the demand of integration of industry and finance in the financial strategy control aspect in Financial Company A. Secondly, some problems such as board of directors lacking independence and financial company lacking appropriate personnel management power in the control of people and organization aspect. Thirdly, Financial Company A is short of capital management function, which resulted that membership cannot independent participate in the funds central management in the control of business aspect. Aiming at the problems mentioned, this paper proposed suggestions in the following three aspects. In the aspect of strategy control, it is necessary to adopt specially industrialization management on monetary assets. In the aspect of people and organization control, it is suggested to optimize the share right structure and set up human resources department for Financial Company A. In the aspect of business control, it is encouraged to let financial companies play a role in the area of funds central management and integration of industry and finance by innovation and attaching great importance to the membership.