Holding company

Holding (holding company) is a joint-stock company whose capital is used primarily to acquire controlling stakes in other companies. The holding's business is to profit from the management of other companies. From a management point of view, a holding is several separate enterprises managed from one center. The goal of the holding is to receive income in the form of dividends from establishing control over the activities and managing the activities of other companies. Unlike the activities of financial companies that invest in shares (stocks) of other companies for profit, holdings are organized to gain control over one or more companies and to manage their activities. Throughout the structure, the holding is similar to a trust, however, the consolidation of enterprises into a holding company is limited, as a rule, only to management and finances. The holding company is headed by the so-called holding company, which has a controlling stake and operates through subordinate, intermediate companies. The most common are “pure” holdings, but there are also mixed ones that combine control and financial functions with direct ownership and management of enterprises. Holding marketing is distributed between the center and managed companies. Political and strategic marketing decisions are usually made by the management company or the board of directors. Tactical marketing decisions are made in managed businesses, and the decisions made are enforced there. Everything changes in the trust when the companies included in the association lose the right to sell their products on their own, and, by the decision of the management company, sell products through a specially created commercial structure of the holding. In this case, the entire marketing mix, with the exception of political decisions, is worked out by this trading company trust.

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