The Group Controls And Manages The Following Crimes: Advantages And Disadvantages

"For example, capital management and control, some encourage the group to make financial control over listed companies.

However, some do not recommend group companies to control the capital of their subsidiaries, because there may be a risk of large shareholders violating the interests of shareholders, so it is hard to say which management is better.

Jie Hongbo, chairman of Beijing nine star Polytron Technologies Inc, said "Shanghai state capital".

In his view, with capital management as an example, enterprises will have 3 management modes, one is centralization of power, one is decentralization, the other is the combination of two modes.

"The advantage of centralization is that the amount of money will be quickly concentrated on the group. The group can do a lot of things, but there are also risks."

Jie Hongbo said.

He explained that in the past, when financing was possible, all enterprises under their respective branches could see clearly, but after centralized control, subordinates could no longer have the ability to communicate with local commercial banks. "This situation does not exist in the capital surplus environment. Once the funds are tight, can the group headquarters guarantee all the needs of the funds?"

In other words, the concentration of funds is not as high as possible.

His attitude is that for group companies, if the fund is centralized and controlled, if it is less than 60%, it is better not to do so, because the benefits of management and control will not come out, but when it is above 85%, it may produce corresponding side effects.

Obviously, it seems that group companies should have a proper sense of propriety.

However, according to "Shanghai state capital", state-owned enterprises tend to focus on high proportion of centralized control, which has its historical background.

In those days, when most state-owned enterprises group was established, it was made up of hundreds of different industries and different types of enterprises.

"Some central enterprises group accounts for up to 20 thousand funds.

Very large.

Although the financial statements are good, it is difficult to do things. "

Most state-owned enterprises responsible person said.

The result is group.

Not high, information extremely asymmetric.

"Information quality can not meet the needs of group enterprises in capital management and control, and lack of funds monitoring mechanism."

Another consequence is that funds are often not effectively matched. "For example, in a period of time, A units have the money to deposit banks, and B units have no money to find bank loans. Standing in the perspective of A and B is normal. Standing in the group's perspective, it will cause three high financial costs, high deposits and high loans.

Maybe a year's profit is basically to pay interest to the bank.

The person in charge said.

If so, state-owned enterprises group will tend to centralized management and control methods.

Coupled with the changing economic environment in recent years,

Environment has prevented individual enterprises from effectively resisting risks.

"As an enterprise, in the present environment, we must have the ability to stabilize and integrate the relationship between the middle and lower reaches, which can only be realized by the group, and the single sub enterprise can not afford it."

Liu Xunfeng, President of Huayi Group, said more than once.

He believes that the centralized power of the group will effectively help subordinate enterprises to quickly and accurately judge the market and make decisive decisions.

Huayi Group has clearly defined the principles of "centralization, concentration, intensification and centralization", and put forward a strategy of "Huayi and national business". Similar to it, Shanghai Pharmaceutical Group also implemented centralized procurement, centralized marketing, centralized funds, unified investment, approval and guarantee, credit and loan monitoring and other processes.

And in financial, legal and audit aspects of vertical management of subsidiaries.