Research On The Internal Control Environment Of Haidilao

The internal control environment,as the key link of internal control,lays the foundation for the effective internal control management and execution of the enterprise.A good internal control environment is more conducive to the prevention of business management risks and the realization of healthy and sustainable development.Therefore,it is of great significance to analyze and study the internal control environment of enterprises.Based on the principal-agent theory,control theory,system theory and company status,this article analyzes and studies the experience and deficiencies related to the internal control environment of Haidilao International Holdings Co.,Ltd.(referred to as Haidilao or Haidilao Company),and finally proposes optimization recommendations with a view to provide reference for companies in the same industry to improve their internal control environment.This article divides Haidilao's internal control environment construction into five major elements: organizational structure,development strategy,human resources,social responsibility,and corporate culture.Through the analysis of these five aspects,it can be found that Haidilao has a standardized organizational charter and allows appropriate decentralization,a combination of integrated strategies and distinctive advantage strategies,a comprehensive use of formal and informal systems,the use of multiple incentive mechanisms,and active social responsibility,emphasis on customer and employee satisfaction.Although Haidilao Company has a lot of experience in the construction of internal control environment for other companies to learn from,Haidilao's internal control environment also has shortcomings.These problems mainly exist in the three aspects of organizational structure,development strategy and human resources.The shortcomings in the organizational structure are the chairman of the board of directors and the CEO of the company and the absence of a supervisory board.The development strategy is concentrated in the single positioning of the brand market.Only one brand may be detrimental to future market competition.The company's nepotism is serious and the rotation system has not been fully implemented,which is not conducive to preventing abuse of power and corruption.Toaddress the deficiencies in Haidilao's internal control environment,this article accordingly proposes the following optimization suggestions: In terms of organizational structure,the company's board chairman and CEO should separate their duties,consider introducing professional managers according to the situation,and establish a sound supervisory board system.Ensure checks and balances of power within the company.In terms of development strategy,the company should implement a diversified development strategy,expand the brand's market positioning,and expand the target customer group.In terms of human resources,it is necessary to build a human resources monitoring system,improve the company's rotation system,prevent the risks of collusion and fraud among employees,and ensure the effective operation of the company's internal controls.The gradual improvement of various aspects of the company's internal control environment will help create good internal conditions for its development,as well as improve the company's internal control design norms and operational effectiveness,thereby ensuring that the company can occupy an advantageous position in competition with similar enterprises to maintain the company's stable operation and development.