The Understanding and Measurement of Profitability in Multi-Subsidiary Companies

Abstract

Business practices across many industries measure success with different approaches based on strategy or utility. The intention of this research paper to understand success through the lens of profitability measurements within a company that has multiple subsidiaries. After the tactical research of profitability measures, the application of the reiterated logic, best practices, strategies, and key measures are recommended to a parent and subsidiary business construct. This specific research paper evaluates a specific company, with multiple subsidiaries, in the energy industry as an environmental subcontractor. Lastly, a proposal is provided derived from the business analysis to implement key profitability measures, best practices along with cost efficiency recommendations.