Case Study Of The Centralized Financial Management In LY Group Company

Along with the deepening of reform and opening up process and successive development of economics,private enterprise in our country embarked on a track of the rapid growth.In recent years,many private enterprises began reform and innovation through resource integration and optimize configuration to build up and strengthen the core competitiveness of enterprise and improve the resource utilization of enterprise,due to the external influence of market competition and the internal influence of the increasing cost.On this background,the decentralized management mode became more and more unsuitable to the development of private enterprises,and gradually replaced by centralized management mode.In the meantime,financial integrated management plays an indispensable role in the centralized management mode due to its particularity.Financial integrated management has become a milestone of the modern private enterprise development process.The long-term development of private enterprises is highly depended on appropriate financial management mode,with private enterprises as one of the main part of China's economic.Along with the further deepening of reform and opening up,the enterprises became bigger and stronger,and the centralized financial management mode developed in private enterprise,making a big improvement of the financial management.In different development stages of private enterprises,the emphasis point of financial management system is different as well.How to choose an appropriate financial management mode according to the actual situation of private enterprises,and how to switch between different financial management modes in different stages of enterprises,are the problems to be solved in need for private enterprises.LY group Co.,Ltd,as one of the largest private training enterprises and ancestor in China,was constructed in the 1980 s.From the initial "one combination" model,to various gradually developed functions,and finally became an enterprise with leading management system,the financial management system experienced a process as follows: from the initial centralized financial management system,it gradually transition to decentralized financial management system in order to improve the response speed of various subsidiaries,then switched into centralized financial management system again with the expansion of group company,and finally ended up in failure.In this article,the financial management system of LY Co.was detailed studied,by analyzing the financial management system conversion of different development stages of enterprise,as well as the reason for failure in the financial management system transformation,to find out its deficiencies in transformation,and provide reference for the development of other private enterprises.