What do you mean by group subsidiary?

Group subsidiary is a form of enterprise organizational structure, which usually refers to the hierarchical structure established by a large enterprise through controlling, managing and operating smaller enterprises. They are interrelated with the parent company and work together for the development and growth of the whole group. In this way, the group can manage and organize the resources of its subsidiaries more effectively and improve the comprehensive benefits of the whole group.

The subsidiaries of the group usually have certain independence and autonomy, and have their own marketing, production and management teams. The parent company will provide support for its subsidiaries in logistics, supply chain management, marketing and R&D, but will not interfere in their business decisions. This cooperative relationship is not only conducive to the expansion of the parent company, but also can strengthen the competitiveness and market share of the subsidiaries.

The subsidiaries of the group play an important role in the development of enterprises, especially in the globalization process of multinational groups. Subsidiaries can better adapt to local policies, laws, culture and market environment, and enhance the visibility and influence of the Group in the local area. Therefore, enterprises should make a comprehensive evaluation according to the actual situation when choosing subsidiaries, and make a comprehensive balance between income and risk to ensure the overall interests of the group.