Whats the point of subsidiaries?

[klasanov]

So the AI is able to manage things fairly well.

I just recenty retired from a game where i had comm devices, electronics, and photography. HUD glasses came out and i made a sub to market those. A little cash infusion and building and tech set up and one less product to worry about.

More broadly, you can do this with other product classes. Say you run beverages and want to expand into automobiles. You dont have the expertise and your cto and coo slots are filled. Create a sub and hire a CEO with automobile experience. It looks like you can still run research and development under the sub as needed.

This gives you leverage to compwte with an AI who just is able to market everything

[Yacal]

What do you use them for? Why would i even use them? Why not keep everything in one company?

Please enlightment me

you can double loan on your assets ( take loans with your subsidiary on its assets, and as the assets are also assets of your parent company you can loan out on it too, but if subsidiary is a listed public company, you cna loan out on the market value which can be 10 times the actual net value) this can speed up rour growth extremely.

hey, as my english is not perfect I do not understand what do you exactly mean here, can you explain to me please?

[beamthegreat]

What do you use them for? Why would i even use them? Why not keep everything in one company?

Please enlightment me

you can double loan on your assets ( take loans with your subsidiary on its assets, and as the assets are also assets of your parent company you can loan out on it too, but if subsidiary is a listed public company, you cna loan out on the market value which can be 10 times the actual net value) this can speed up rour growth extremely.

hey, as my english is not perfect I do not understand what do you exactly mean here, can you explain to me please?

If you start a new game and have $50 mil in your company with no debt, you can borrow another $50 mil to start a new subsidiary with $95 mil (need to reserve some cash to pay interest), and use your subsidiary to borrow another $95 mil.

Your company will have $5 million in cash, and your subsidiary will have $190 million in cash, which is not possible without using subsidiaries.


I find subsidiaries to be very useful in setting up a very profitable retail firm without having to micro-manage. Simply choose a CEO with 100 expertise points in retailing, set up 5-10 departments and 5-10 convenience stores in every city, depending on the number of available seaports (more seaport allows for more stores). Be sure to have at least 30 customer traffic points, and you should generate around 20-50% in ROA even in the most difficult setting. Works every single game.

Also, most CEOs tend to manage telecom quite well, which is quite useful if you're playing long games since there is no option to adjust internet prices with inflation.

[LOLCL]

Personally, I find that when I play it's way too easy to expand into too many industries in effort to compete with the AI. The AI works on the level that if there's no competition in a sector, it excels, but once there is competition it certainly falters. At least on lower difficulty. So subsidiaries are basically made to compete with the AI in these sectors while you focus on your main one.

For instance, I wanted to be focused on being a leading edge tech company. So I split up everything that wasn't related to that and gave it to subsidiaries. As well, you can set up subsidiaries simply for competition.

[LOLCL]

Personally, I find that when I play it's way too easy to expand into too many industries in effort to compete with the AI. The AI works on the level that if there's no competition in a sector, it excels, but once there is competition it certainly falters. At least on lower difficulty. So subsidiaries are basically made to compete with the AI in these sectors while you focus on your main one.

For instance, I wanted to be focused on being a leading edge tech company. So I split up everything that wasn't related to that and gave it to subsidiaries. As well, you can set up subsidiaries simply for competition.

[Jalwearnshaw22]

A great way of using subsidies correctly is separating your main business elements parts. For example I'm not the best of working with software development so I set up a subsidy to take on this take with the starting budget I would like to allocate to it. You can have your input into the company and have some control still and set up a dividend to what the company is bringing in. I typically do this with software,farming, manufacturing and real estate. Keeping them seperate you can see where the revenue is coming from. The con from doing this is the wages you will have to pay out for each management team. Should you need anymore advice let me know.