The management idea of West China Hope Group is: Using proper person in proper position, bold devolution and strength supervision.

Enterprise control mode (C)

Formal control (r)


Mainland Hope Group wanted to use modern enterprise management systems, ERP information system, to achieve scientific and efficient management.


In Mainland Hope Group, they wanted to standardize the management by regarding equity as a link, laws as the criterion and implement target management responsibility system and use performance management, 360˚ assessment to strengthen enterprise internal control.


One of West China Hope Group’s management policy is: “Using iron discipline to manage enterprise”.


West China Hope Group wanted to use ERP system to monitor and guide every branches in real time. Currently, the usage of ERP covers logistics, production and financial management.


By using marginal contribution rate, East Hope Group evaluated the investment returns of every branch and used formals management system in personnel, finance and quality management.


New Hope Group seized two key points in management firmly: One is the finance of subsidiaries must accepts direct leadership of headquarter; The other is implementing vertical management system in the field of technology management

Informal control (i)


Four brothers’ verbal agreement:

Liu Yongxing and Liu Yongmei hold the majority of the stock.


Liu Yongxing and Liu Yongmei put forward the principle of “Share profits equally” initiatively, but the property right were still fuzzy and the wealth did not belong to one person, but everyone in the family.


It was the first time of four brothers to divide their labor and assets in 1992. Different from the agreement in entrepreneurial stage, four brothers shared the stock rights equally (everyone hold 25%) rather than “Liu Yongxing and Liu Yongmei hold the majority of the stock”.

Subjective consciousness


Organizational trust (T)

Social trust (s)


Liu Yonghao stated “The socialization of company managers not only can optimize governance structure, play the role of professional managers better but also help to guarantee family control”.


Liu Yonghao stated “Provide the best wages, benefits and developing space to professional managers, let them help New Hope Group to grow. This kind of interaction is our common aspiration”


Authorize gradually, give professional managers enough free decision space, everybody was let to display his talents fully, make professional managers and enterprise grow together.


Liu Yonghao stated “Don’t afraid to use outsiders”


Liu Yongxing stated “The biggest malady of family enterprise is social elite can’t participate in management layer”


Liu Yongxing stated “There is no Liu’s family member in East Hope Group’s senior managers”


Liu Yongxing stated “For employees who have potential capacity, we put them in the positions even they don’t dare to dream about to train them and after their capacity and responsibility increased, the remuneration will also increased.”

Enterprise control mode (C)

Formal control (r)


East Hope Group pursued excellent basic management and kept improving enterprise management systems and related disciplines.