Ownership P1 (a)

Vanity Fair Ownership

Purpose
The purpose of this task is to discuss the different times of ownership that can be used within a business.

Meaning
This means that I will be able to clarify what business ownership Vanity Fair is under which will help to me to learn about how the business is operated and managed.

Business ownership is possessing control over anther company other than your own, having the ability to decide its functioning and operations.

There are two purposes that business ownership may be required. These are, for initiating the business and purchasing a company that is already existing and franchising.

Condé Nast:

• A mass media company headquartered at One World Trade Centre in New York City. 
• Under Subsidiary ownership, meaning that is is owned or controlled by another company. 
• Condé Nast of owned by the organisation Advance Publications, a privately owned media 
• company founded in 1922. 

Advance Publications: 

Advance Publications is a mass media company that publishes newspapers, magazines and television products. Advance Publications is managed by Robert A. Sauerberg as its president, Charles H. Townsend as it chief executive officer and Samuel Irving Newhouse, Jr as the chairman and CEO, a member of the Newhouse family that have owned and operated Conde Nast since 1959. 

Vanity Fair:

• A magazine of popular culture, fashion and current affairs, published by Condé Nast. 
• Vanity Fair has been published since 1983 and there have been editions for four European countries as well as the U.S. edition. 
• Vanity Fair is under subsidiary ownership, so it is owned or controlled by another company. It is one of the divisions of Condé Nast. 

Subsidiary Ownership:

• Subsidiary ownership means that a company is owned or controlled by another company. 
• Advantages - 
• Isolates risks because the two companies are separate legal entities, so the losses at the subsidiary do not automatically transfer to the parent company. 
• The parent company can exercise control over a subsidiary if it owns a large block of its stock, but not necessarily a majority of the shares. 
• The parent-subsidiary operating structure allow for a greater diversification and increased efficiencies, partly because head management of the parent company does not have to be involved in the operational details of its subsidiary. (according to *Rating Parent/Holding Companies and Their Subsidiaries," as 2010 document by the Dominion Bond Rating Service.)
• Disadvantages - 
• The parent company does not have to complete access to the cash flow of the subsidiary, unless the parent controls 100 percents of the shares. 
• To maintain its image and reputation, the parent company may have to pay for the subsidiary's debts even if it has no legal obligation. 
• Lending institutions may require guarantees from the parent before lending to one of its subsidiaries. 
• The parent company could be liable for damages if an operating subsidiary violates the law or is subject to enforcement actions (say Dominion Bond Rating Service.)

The other companies that Condé Nast own are of similar styles, such as Allure, Architectural Digest, Ars Technica, Bon Appétit, Brides, Condé Nast Traveler, Details, Epicurious, Glamour, Golf Digest, Golf World, GQ, Lucky, The New Yorker, Self, Teen Vogue, Vanity Fair, Vogue, Wand Wired.