In order to know the meaning of the term headquarters, it is necessary, first of all, to discover the etymological origin of the two words that give it its shape:
-House comes from the Latin “house” and was used to refer to the room built to protect itself from cold.
-Matriz, on the other hand, emanates from the Latin “matrix” which, in turn, is the result of the sum of two components: the noun “mater”, which is synonymous with “mother”, and the suffix “-trix”, which is used to indicate that it is a female agent.
It is known as headquarters to the headquarters of organization or entity. Other branches, subsidiaries, etc. depend on or are derived from the parent company. For example: “I worked for five years in a branch in the downtown area and now I am at the headquarters”, “In recent months there were dozens of layoffs at the headquarters”, “The headquarters of the multinational is located in Paris ”.
According to DigoPaul, the idea of headquarters is often used in relation to the most important office of a bank. In this place the directors of the institution usually work. The headquarters of the Banco Ciudad de Buenos Aires, to cite one case, operates in a building located in the Buenos Aires neighborhood of San Nicolás, where the main financial area of the Argentine capital is located.
From an economic point of view, if more and more companies and entities of different categories are betting on having a parent company, it is because it is considered that having this brings with it a long list of advantages. Specifically, among the most significant is the fact that it does not involve a significant amount of fixed costs and allows for better management or organization. And it is that it comes to act as a control and operations center in general, although, above all, in aspects such as sales, expenses and costs.
On the other hand, it must also be established that there are those who highlight that the parent company also brings with it a series of disadvantages. We are referring to some such as that it requires maintenance costs or that it cannot be used in all the sectors that are desired.
Many are the companies that have a parent company. And this would be the case, for example, of Motorola, which owns its in Schaumburg (Illinois – United States).
The company that owns other companies that depend on it is also called the parent company or parent company, since it has more than half of the share capital. This means that, in a business group, the parent company is the most relevant company.
The link between the parent company and the subsidiaries varies from case to case. There are parent companies that are only responsible for managing capital, while others participate directly in productive activity.
Telefónica SA, to cite one case, is the parent company of the Movistar brand, a cell phone operator (mobile) with a presence in Spain and in several Latin American countries. The operators Vivo and O2 are other subsidiaries of Telefónica.