20-13.

Subsidiary

Pattern description

A subsidiary, subsidiary company or daughter company is a company that is owned or controlled by another company, which is called the parent company, parent, or holding company. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a government or state-owned enterprise. In some cases, particularly in the music and book publishing industries, subsidiaries are referred to as imprints.

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.