Research On The Management And Control Of Rongxing Business Group

Rong Xing group was founded in 2014, the scope of business is diversified, the number of subsidiaries is also increasing. There are great differences in each sub company in internal and external environment, so the construction of the management and control system of Rong Xing group is complex. By using the methods of questionnaire and interview, to analyze mainly from the management control mode, control means, governance structure, organizational structure, and find main problems. Rongxing group still use the traditional private enterprise governance mode, ownership and management of enterprises does not achieve effective separation, owners at the same time as the group chairman and general manager, difficult to form effective rights restriction and balance mechanism. The company does not have a board of directors, responsibilities are not clearly defined. The group is in lacking of some functional departments, and the allocation of rights is confused. The business of Rongqiao Investment Limited is more complex, but centralized control mode doesn’t allow the company to respond quickly and effectively to the environment. Rongqiao Leasing Co., Ltd. is a joint venture enterprise, which is in lacking of the board of supervisors, also the lack of scientific decision-making.According to the above problems, we put forward measures of improving management and control system of Rong Xing group. On the overall development plan of the group, the implementation of control mode should be mixed, using different control mode for different subsidiary company. The parent company will set up board of directors, also set up the strategic committee and remuneration committee. Also set up the strategic planning department, audit department and marketing department. Rongqiao Investment Limited company shall set up board of directors, to increase the proportion of outside directors, and to strengthen the independence; add in business department and risk management department, and redefines the responsibilities of human resources management department. Rongqiao leasing company will set up a board of supervisors, audit department, and delete business department. And use different means of control, such as strategic management, cultural management, human resource management, financial management and other means.