May 2005 
Volume 04, Issue 1 
Main Feature


Subsidiaries: On the same team

Thanks to acquisitions made in the last decade, the list of companies that make up the Boeing of today seems to read like a "who's who" of the aerospace industry. Hawker de Havilland, Hughes, McDonnell Douglas and Rockwell International are just some of the companies Boeing has brought into the fold.

While Boeing has merged some acquired companies into its operations, other firms such as Alteon, which trains pilots and maintenance crews, and Jeppesen, a provider of aeronautical information, operate as separate, distinct subsidiaries. A subsidiary company is a business that is wholly owned or controlled by another company, and is set up deliberately by the parent company as a separate legal entity.


Meet the subsidiariesMeet the subsidiaries

The Boeing Company's subsidiaries play key visible roles in supporting the company's Vision 2016 strategies of running healthy core businesses, leveraging strengths into new products and services and opening new frontiers. Take a look at some short profiles of a few of Boeing's many subsidiaries here.


What's in a name?

Why do companies like Boeing elect to let acquired companies operate as subsidiaries? In general, subsidiary structures can provide benefits such as financial advantages and legal protection. Yet one key reason for establishing a subsidiary relationship is to retain the power of a brand.

Because brands are built over time through reputation and customer experiences, they're valuable company assets. A strong, positive brand helps shape expectations of what kind of experience a customer will have when doing business with the company. It also melds public perceptions about a company and its products.



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