Concept in Definition ABC

The companies have a structure of establishments that have a relationship of dependence with respect to the main headquarters which is the origin and source of other branches. This is especially visible in banks that have an organization of different centers of the same bank that are distributed in cities and towns.

Having different branches at different points is a means of reaching a greater number of customers by offering a better service. Bank branches transmit a corporate image while the place projects the same decoration image. In this way, customers easily identify which entity that branch corresponds to.

Secondary centers

The fact that there are different savings banks at different points in the geographypower the globalization in the sector since customers are not conditioned to carry out their income or request the bank statements in a single branch but they have the possibility of moving and traveling, being able to perform these functions in a Bank of that entity that is located in the place of destination.

The branch concept applied to the company can also be related to a business that begins its international expansion and positions a branch in a country Foreign. Branches can be carried out in commercial companies. This branch structure shows the different branches that an entity has in different locations. All of them are interconnected and follow the administrative process determined by the headquarters. In addition, all the branches of the same entity carry out the same activity.

When a business evolves positively, shows financial solvency and offers benefits, many projects begin expansion. To do this, one of the necessary steps is the creation of another delegation. This expansion process is gradual and gradual. In addition, a preliminary market study is carried out of the points where to locate the new branches.

The branches have frequent contact with what is considered the parent company (the most important point in the structure).

Branch characteristics

The branch is a secondary entity that only makes sense in relation to the parent, therefore, there is a relationship of subordination in the organization chart. A subordination applicable both from the fiscal point of view and from the legal point of view.

Photos: iStock - ewg3D / Yuri_Arcurs