Research On The Internal Control System Optimization Of RK Group

RK Group has experienced nearly 20 years of development,start with a school-run enterprise of Qingdao University of Science and Technology.It has grown rapidly into a privately listed enterprise group with numerous business departments and subsidiaries.Since 2011,Sales revenue of main business rubber machinery has been in the forefront of the industry in the world.The success of RK is due to the unique strategy of "buyers creation" in the early stage.Also because we rapidly divide the sub-companies and effective establishment of internal control system results.However with the increase of expanding business and the scope of control,there is the situation like" unified,but in different opinions" among the sub-companies.In the circumstances of the protectionism of international trade from US raised,and tough business environment of domestic factories,In order to achieve the goal of RK that is "Pursue Excellence,Persevere for a hundred years",how to improve the internal administration continuously?How to make all of the employees all pull together?Not only can continuously improve the efficiency of collaboration within the organization,but also inspire the innovation of activity in all the sub-companies.This is very important and something meaningful,this is also the point of this research.This paper is based on the basic theory of internal control of enterprise groups and RK group's internal management status.Meanwhile I contrasted and learnt from the failure of other enterprises in the industry experience,I analyzed the concrete and organizational management problems existing in RK group,then found the problems of several aspects that are the parent-subsidiary corporate governance,strategic system,financial,performance,human,cultural control,and information of RK group.This paper also elaborates on the external environment which forms the current management status,the influencing factors of industry changes,the internal environment and the mode and method of internal control.On this basis,putting forward the internal control optimization measures suitable for the current "small group operation" of RK group:First of all,To make clear the mission?vision?responsibility and positioning of the RK group,strengthen and enhance the functional capacity,adjust the current internal control organizational framework and subsidiary governance.Secondly,the internal control system of "strategic control type partial operation" should be established,considering officially switching strategy to "selling smart factories".Third,explore new accounting methods of each subsidiary and optimize PBC and other performance control tools.Fourth,strengthen the ability of professional human resources personnel,cultural supplement "values" and self-confidence of cultural publicity and implementation.Fifth,standardize the use of information tools and optimize the production information processing system.Finally,the guarantee measures for the implementation of the optimization plan are proposed to promote the implementation of the optimization plan.The contribution of this paper is:First,Enterprise groups should optimize the strategic control system with flexible methods.Second,Risk of quality control which distinguished by the enterprise groups always is failure.Third,the proposed optimization measures are practical and feasible methods based on the analysis of years of practical experience of RK group,hope to provide some useful reference to other enterprise groups.