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I am confused as to the definition of synergy managers and parent developers. What is the difference between this two? I understand that a synergy manager (parent company) will achieve synergies between companies i.e through management of costs, setting targets and etc. How is this different from a parental developer? In my understanding, they are both involved, directly or indirectly, in the companies operation and provide the necessary help in order for the subsidiaries to achieve benefits. Am i wrong to understand it as such?
Would appreciate your clarification. Ive gone through the notes, but i still dont understand the concept of these two relationship.
There is overlap.
You are completely correct about synergy – it’s where two together do better than the sum of their separate efforts, either by saving costs or boosting revenue.
The idea behind parental development is that there is a transfer of knowledge and skills between the holding company and the subsidiary so that the subsidiary learns how to perform better. There is, of course, synergy here but it is not simply slashing costs or accessing each others’ customer lists. It is head office nurturing the subsidiary, teaching it how to do better or providing services to improve its performance.
HTH
l think the parent developer is mainly concerned about offering unique skills that might not be available to the SBU manager’s that could be of value to the SBU
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