Research On The Optimization Scheme Of Financial Management And Control Of D Group

Since the reform and opening up,China's economic development model has shifted from the planned economy to market economic,the constantly expanding and deepening of which enables our economy to have a sustained and rapid growth.In this favorable macroeconomic environment,a large number of state-owned and private enterprises have grown rapidly,expanded their business scope and scale,and gradually formed a consortium of legal persons,commonly known as the "conglomerates",which consist of the parent company,the subsidiary company,the affiliated company and other members,with capital as the main link,the parent company as the main body,and the group charter as the common code of conduct.After years of development,the group companies have become both the main force to promote China's economic development and the mainstay to support China's economic base.Although the development of China's group companies is thriving,we must also recognize the problems accompanied within the whole process.The development history of the group companies in China is relatively short and the development speed is over fast.For most private enterprises gone through the process from scratch,deficiencies in management experience,organization structure and operation mode inevitably leads to many problems such as inharmonious relations within the group,lack of synergy due to excessive diversification,and even out-of-control management.For group companies,financial activities are the centralized embodiment and quantitative reflection of the operating results,financial relations are the main ties linking the various operating entities within the group,and financial management is an important tool for the strategic decision-making and operating management.Therefore,the combination of effective financial activities,orderly financial relations and financial management becomes a core foundation for group companies to gain advantages in the market,to maintain sustainable development and to be truly bigger and stronger.Crucial factors to the development of a group company must include a wise choose of a financial control model suitable for the market,the establishment of an efficient control system and strategic coordination among the various operating subjects to enhance the core competitiveness.Due to the short development history and rapid development of China's group companies,many problems have been exposed within the groups' financial control system,leading to such serious consequences as demonstrated by Le Eco group,Baoqianli Group,Huishan Dairy group.As a listed company,D group is at the stage of rapid development which requires an effective financial control system accordingly.My long-term practice of financial management in D group prepares me a relatively profound understanding of the financial control between the parent company and its subsidiaries.Thus,based on my former practice and understanding,this paper intends to take the improvement strategies of the financial control as the object of study.This paper,based on D Group's development and the existing financial control,mainly focuses on the analysis of D Group's management including but not limited to personnel management,financial information,investment management,capital management and budget management and abstracts the benefits resulted from and problems occurred within.Moreover,this paper analyzes the financial control mode of domestic and foreign excellent groups which could be used as a reference.In the end,to ensure a healthy and stable development of D Group,the suggestion hereby is to adapt a financial control mode of "a combination of centralized management(as an priority)and decentralized management”,to make the financial management function,to perfect the corporate governance structure,to speed up the construction of modern group enterprises,to improve the efficiency of financial decision-making,and to improve the economic benefits.