What are the advantages of setting up a group company?

Lower cost: compared with decentralized processing, centralized processing saves more personnel, management costs and hardware investment;

Higher efficiency: the internal communication efficiency of centralized institutions is higher, and centralization is generally accompanied by the combing of processes and mechanisms, and the workflow and information flow are also improved accordingly, which is finally reflected in the improvement of operational efficiency;

Better experience: after concentration, there are better opportunities to ensure that different internal and external customers in different regions and different business lines of the whole group enjoy the same experience;

Less risk: after centralization, the headquarters has a better understanding of the risks of grass-roots business, the risk inspection and control points have also converged accordingly, and the cost of risk management has also been reduced accordingly;

Wider knowledge diffusion: after concentration, the management and production improvements produced by a certain part can be quickly copied to other departments and business lines, which is more conducive to the accumulation and diffusion of knowledge;

More rational allocation of resources: headquarters is a more powerful subject of resource integration. At the same time, as the only "person who can see all the cards" in the group, the headquarters can scientifically and reasonably plan the business development at or above the division level, invest the most scarce resources in the part that is most beneficial to the group as a whole, and create the greatest marginal benefits;

More efficient business series: for groups with obvious upstream and downstream relationships or main body and support relationships in each business line, the head office can play the role of production and operation coordinator more effectively, coordinate the cooperation of production, transportation and sales of various business divisions more efficiently, and finally connect all the plates in series into a closely integrated whole;

More comprehensive decision-making results: At the group level, the headquarters has the right to veto the proposals of subordinate units or promote some business activities of subordinate units, and may sacrifice some local interests in exchange for greater overall interests, that is, at1+1> Further increase to 0.75+ 1.5 >:2.25 on the basis of 2.