17-04.

Parent company

Pattern description

A parent company is a company that owns enough voting stock in another firm to control management and operation by doing and influencing or electing its board of directors. The second company is deemed a subsidiary of the parent company.

Inventive problems

The company should be large and have a complex structure to perform a large number of diverse operations for the development, production, and delivery of a complex product to the customers.

The company should be small and have a simple structure in order to:

  • reduce the variety and complexity of the company activities;
  • focus on a small number of core operations;
  • have a small stuff;
  • minimize the cost of development, production, sale, and delivery of products to customers.