Many industries, products, and services have been included under the “Business” umbrella, but how to control and manage each field separately to ensure a lucrative business?
Here we go to the holding corporate strategy, which is categorized as the most effective strategy to protect your business assets and improve them to maximum profitability and productivity.
The main concepts of the holding company definition are controlling, managing, and ownership of interests and business assets without producing aspect.
A holding company is usually run by entrepreneurs that are managing more than one enterprise by dividing businesses into several companies or subsidiaries that are individually operating specific products, sales, services, or even manufacturing.
The management of the holding company is in charge of directing the operations of the subsidiaries. They have the authority to elect and terminate corporate executives or managers, as well as to make important political decisions, including whether to merge or disband.
Genena Group special experience
What is commonly known in holding companies is that they mostly comprise many different businesses and they are 100% not related to each other, which unfortunately can destroy one or two of the subsidiaries because of the complexity and the dividing in both business relations and company management.
But what about diversity and relativity?
In Genena Group, they gathered both diversity in companies’ specializations and management and relativity between the companies by evolving the support idea between the subsidiaries, based on the sequence of production processes that imposes the same customer to need all the companies’ services and products to guarantee a successful business or project process.
This merging feature has played a huge role in the continuity of each company, helped improve each company’s management, tools, employees, resources, assets, and clients and decreased the disadvantages of the holding company strategy.
Features of the concept
The concept of holding corporate is a proverbial way to manage and control your business.
- By utilizing this concept, you can ensure liability protection by placing operating companies and the assets they use in separate entities, which creates a liability barrier, as each subsidiary is responsible for its own debts.
- Boost innovation is one of the most important features of this strategy as it reduces the risk of investing in startups or other ventures that seem risky according to the entities separation.
- Each entity has its own experienced management that is specialized specifically in that company’s industry, which does not require day-to-day management from the holding company side.
Finally, with a holding corporate strategy, you will ensure a well-managed and lucrative business that can last for many years and continuously grow and expand through diverse industries.