Corporate Parenting

Corporate parenting is a term used to describe the strategic management approach that a parent company takes to manage and support its subsidiary companies or business units. It involves providing guidance, resources, and oversight to ensure that the subsidiary companies are aligned with the overall corporate strategy and objectives.

A corporate parent may be involved in setting the strategic direction for its subsidiary companies, providing financial resources, and overseeing their performance. This can include providing central functions such as human resources, finance, and IT, as well as sharing best practices and knowledge across the group.

Corporate parenting can also involve making decisions about the portfolio of businesses that the company owns, such as divesting or acquiring businesses to improve overall performance or strategic fit.

Overall, corporate parenting is about creating a structure and culture that supports the success of the entire corporate group, rather than just focusing on the individual performance of each subsidiary company.

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