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Proceedings of the 12th European Conference on Knowledge ...

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Anna Maria Costanza Rinaldi<br />

With horiz<strong>on</strong>tally differentiated groups, is even clearer <str<strong>on</strong>g>the</str<strong>on</strong>g> need to keep each company separate as<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>y handle differentiated activities.<br />

In group p-th (Figure 4), formed by <str<strong>on</strong>g>the</str<strong>on</strong>g> holding and two subsidiaries, <str<strong>on</strong>g>the</str<strong>on</strong>g> subdivisi<strong>on</strong> <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> legal<br />

entities is made by ec<strong>on</strong>omic activities and functi<strong>on</strong>s. In <str<strong>on</strong>g>the</str<strong>on</strong>g> specific case, it is not c<strong>on</strong>venient to<br />

separate <str<strong>on</strong>g>the</str<strong>on</strong>g> producti<strong>on</strong> process <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> subsidiary that produces PVC granules. The o<str<strong>on</strong>g>the</str<strong>on</strong>g>r company<br />

produces and sales an additive, which is a comp<strong>on</strong>ent <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> PVC mix, and for this reas<strong>on</strong>, subsidiary<br />

2 is also <str<strong>on</strong>g>the</str<strong>on</strong>g> supplier <str<strong>on</strong>g>of</str<strong>on</strong>g> subsidiary 1.<br />

Figure 1: Group i - Footwear<br />

830

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