Whats the point of subsidiaries?

[Abefar]

New dlc looks promising with a lot of interesting ideas. Im happy this game keeps delevoping - keep up the good work

I havent tried the beta yet and would like to ask what the use of subsidiaries are.

What do you use them for? Why would i even use them? Why not keep everything in one company?

Please enlightment me

[anjali]

What do you use them for? Why would i even use them? Why not keep everything in one company?

Please enlightment me

should try it, it is certainly more interesting.
there are up and downsides of using subsidiaries

upsides are:
you can double loan on your assets ( take loans with your subsidiary on its assets, and as the assets are also assets of your parent company you can loan out on it too, but if subsidiary is a listed public company, you cna loan out on the market value which can be 10 times the actual net value) this can speed up rour growth extremely.

another upside is that you can take out paert of the business into one of your subsidiaries and let them handle it, though needs still some finetuning of the AI but some stuff thay are doing quite well (like they are a good price robot so you dont have to check your prices. or use them yo run all your production with their skills a brandnew factory can be at level 6 instantly)

if you play the stockmarket it gives you also the chance to takeover a company, thats on heavy loss, for a few pennies and turn it into a florishing company with huge profits by just adjusting the companies managment policies and operations (like in reallife) thats what i mainly use the subsidiaries for, renew the company, control them, rip them in pieces, and move stuff thats worth to keep into another subsidiary if the remaining shares are too expansive to get the shareprice further down before i merge it into another subsidiary. or just close down whats unneccessary and merge into another sub, it doesnt litter your company with all the unwanted buildings.

downside:
if you dont finetune the managment policy of the subsidiary company or give em too much freedom you gonna end up with either heavy losses in your subsidiary company or with a heavily increased micromanagment that could drive ya nuts for fixing the stuff they mess up.

another downside you could see in the additional wages you ve to pay and the HQ expanses for each subsidiary but its not really a downside as those subs gonna pull good profit if managment policies are set right.


in addition many like to handle different companies, gives extended gameplay and opens up new options and strategies to play this game. i also use them to prebuy stocks (not working too well yet as they sell the stock in tender offers and you cant do nothing about it as of yet, hope that gets changed) that way you can loan with the subsidiary on the stock to keep buying and you can loan also on the parent company, you could play that game deeper if you have a sub of sub of sub of sub dong realestate would bloat up the value as hell and you can 5 times loan out but homestly thats too much money to spend^^

[bundyaxl]

The main advantage for me is you can have several corporate brands.
I prefer the corporate branding strategy and this cannot be done effectively if you are in several industries/mega product classes or the brand will suffer.

I haven't tried it but you can also theoretically make a premium and generic brand for the same product with product customization. Now with the new marketing feature you can do this with brand rating too, also haven't tried it yet.

[batista]

The way I trie to use them is to keep a good view on my company. I make different subidiaries and let them stick to one product class. So I can follow wich of them has problems. But their are more posibilities to use them.

[WilliamMGary]

The way I trie to use them is to keep a good view on my company. I make different subidiaries and let them stick to one product class. So I can follow wich of them has problems. But their are more posibilities to use them.

hmm...seems like a lot of work. My vision is once I build a massive empire as a private company, to spin out my Retail, Manufacturing, Media Firms, Apartments into separate companies and have all the operations work together and see how that plays out.

[jondonnis]

I have a subsidiary that just runs resources, all the mines etc. Problem is, the AI never bothers to lay new mines, I have to do it myself on the AI's behalf. Because the parent company that I run, needs all the resources. That's one of the issues at the moment.

[azxcvbnm321]

What seems to be working well for me is creating a real estate + stock focused subsidiary. I use the subsidiary to buy up other company's stock and the AI builds apartments on its own. So far the AI purchased a whole block of real estate and is building apartments and even donated an university to up the stats of the apartments and increase land value.

[therealevan]

What seems to be working well for me is creating a real estate + stock focused subsidiary. I use the subsidiary to buy up other company's stock and the AI builds apartments on its own. So far the AI purchased a whole block of real estate and is building apartments and even donated an university to up the stats of the apartments and increase land value.

The CEO of my subs never do that, even if I select for them to focus on two or three products, they end up doing products I have listed in red.

[azxcvbnm321]

If you give them stores or factories that already are in products, then they will be able to expand in those areas. Check your management settings. There is a slider and box that indicates if you want them to be able to build factories if they are selling a retail product. Uncheck that box and they won't build factories. Use those sliders and boxes.

I find that the AI is pretty bad at setting up efficient factories and production so I always do that part myself. I use a COO to manage the retail stores and set prices which they are pretty good at doing. They are also good at advertising and media companies and aren't horrible at real estate or stock. Maybe you should restrict your subsidiaries to do those things. Again, there is a slider and box that will tell them to only sell items from your parent company.

[Outroz]

Manipulate your book! Make a subsidiaries and dump all your non profit making assets (Mine, R&D, Marketing,etc.) in, then the income statement of your main company will look great for IPO.