The structure of a holding depends on its type, and the formation of groups of companies is determined based on individual needs.
Horizontal structure
It assumes the presence of one parent company and a number of subsidiaries that are functionally similar. The main method of increasing the efficiency of such a holding is maximum coverage of the territory. An example of such an organization is a chain of stores. The horizontal structure is typical for wholesale and retail trade.
Let's consider the advantages of this structure:
A similar scheme teacher data package for organizing subsidiaries.
Uniform criteria for assessing the performance of each company.
A proven system for creating companies, which simplifies the process of forming each subsequent one.
However, this option has its drawbacks :
The complexity of managing remote structures.
The need to know the characteristics of each region.
The horizontal structure is suitable for brands.
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Vertical structure
Ideal for companies that cover the entire production cycle. For example, one company may be responsible for processing, another for transportation, and a third for the sale of products. An example would be an agroholding.
The benefits of a vertical structure include:
Setting competitive prices.
Quality control of products at all stages of production.
Opportunity to reduce costs.
The disadvantage is the need for deep knowledge of all the features of each area of activity.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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