The Research On Parent-Subsidiary Management Control Model Of GWE Group

With the increasing optimization of the socialist market economic system,development of the socialized production and the fierce market competition,enterprise group has become a trend.Improving operational effectiveness and quality of enterprise group would not only affect their own quality and development,but also the quality and effectiveness of the overall operation of a national economy.The parent company,as one of the most important organizational form of enterprise group with its establishment and operation of parent company in a scientific,efficient,and optimized way,will play a decisive role for the implement of strategy and healthy development of enterprise groups.GWE enterprise group is a state holding listed company,which mainly produces high and low voltage switchgear and electrical component,with concentrated fruit juice,hydropower and logistics business as its sideline.As a “bundling listed” typical case of state holding listed company,the establish of GWE is completely different from the west microeconomic theory.Therefore,research on the management and control model of parent company of GWE enterprise group would make a positive reference in finding and solving the “Birth defects” and problem during the collectivized operation of state-owned enterprise as well as taking active measures to optimize and perfect the models and means to improve the quality and effect of group management.Based on the literature research,the author collects the fundemental theories about company management and control,parent company characteristics,control,management and control model,the internal and external factors which infulence the management and control choices from domestic and foreign theorists.The paper also generalize and chooses the following three types as its theory basis: the administrative management type aiming for dealing with the inaction of the parent company,the governance type based on parent company and management control modes of parent company and subsidiary company aiming for the management of parent company.In the study,the paper largely adopted a comparative analysis to analyse and compare the characters,advantages and disadvantages of those three management and control models,as well as the controlling situation of GWE enterprise group in different development periods and internal and external factors of its parent company,based on which to make suggestions in terms of perfecting and optimizing the model and means of the management and control.in terms of perfecting and optimizing the model and means of the management and control.After the study,the paper reports that those three control models are not a criterion but a relative and high degree conclusion.Thus it is not to be simply judged as which is better or to make a clear distinction among them for the enterprise group control is always a complex and changable system.All the patterns,frameworks,means and methodologies are no more than theories,knowledge and technology.It is the wisdom of entrepreneurs that make good use of these models and means to constantly adapt the changing environment,demands of group's development strategy as well as the reality of the enterprise.