STMicroelectronics Parent-Subsidiary Network: Visualization & Analysis

This report provides a visualization and analysis of the STMicroelectronics parent-subsidiary network, highlighting the company's global presence and organizational structure. It discusses STMicroelectronics' internationalization strategy, focusing on research and development, manufacturing, and sales operations across 36 countries. The report emphasizes the company's centralized matrix structure, its commitment to environmental conservation, and the importance of research and development in maintaining competitiveness. It explores the relationships between the parent company and its subsidiaries, noting the standardized products and shared management practices. Furthermore, the analysis touches upon revenue generation, funding sources, and the impact of employee size on production. The report also examines key centrality measures such as degree, betweenness, closeness, and eigenvector centrality to understand the network's dynamics and the influence of various entities within it. Finally, it assesses the implications of industry and country environments on STMicroelectronics' innovation strategy, highlighting its efforts to remain a versatile and fast-growing company in the electronics industry.

Running head: Visualization of parent-subsidiary of STMicroelectronics network
Visualization of parent-subsidiary of STMicroelectronics network
Student’s Name
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Abstract
STMicroelectronics is a multinational company which deals with the designing, development,
manufacturing and marketing of a wide range of the semiconductors products mainly used in
microelectronic applications.
Introduction
STMicroelectronics is a globally group of companies controlled and managed by organized matrix
structures which are centralized. It is ranged 5th in the world among the semiconductors companies
and top in the supplier according to the isuppli.

Internationalization Strategy of STmicroelectronics (research & development) Limited
STMicroelectronics is a multinational company which deals with the designing, development,
manufacturing and marketing of a wide range of the semiconductors products main used in
microelectronic applications. It is ranged 5th in the world among the semiconductors companies and
top in the supplier according to the isuppli report.
STMicroelectronics co-founders were an Italian called Merger of SGS Microelettronica and French
Semiconducteurs Thomson in the year 1987. According to statistics, it has a total number of more
than 50,000 employees, 16 more advanced R&D units, 39 designing and application centers, 15
main manufacturing sites and 78 sales offices in 36 countries. The main corporate legal headquarter
in located in Netherlands. The headquarter for Europe, Middle East and African is located in
Geneva. The U.S.A headquarters is located at Carrollton Texas, Singapore host headquarter for
Asia-pacific, Japanese operates in Tokyo and China in Shanghai. The shares are mainly traded in
New York Stock Exchange, Milan Stock Exchange and Euronext Paris (Dutton, Moore, &
STMICROELECTRONICS, 2018).
The Economic environment has negatively affected the demand and sales of semiconductors
products. The new changes in these products requires the some adjustment and appropriate changes
due to volatility environment in the current global economic. The industry experiences significant
structural changes due to advancement to the technology hence there is need to meet the market
demand and also try our best to out compete the competitors.

STMicroelectronics is a globally group of companies controlled and managed by organized matrix
structures which are centralized. Good communication and closer customer management is the main
objective which will enable proper research and development.
The company produces one of the most wide range of semiconductors in the industry. Such
products are discrete diodes and transistors among other chip devices. The products are
manufactured and designed by use of wide range methods of microelectronics and
telecommunication systems. The processes are mainly based on current change in technology to fit
other peripheral devices (Nallamothu, STMicroelectronics, 2019).
The company has been able to maintained high competition in the industry. This has been mainly
facilitated by research and development. The main challenge is to maintain cost-effective, high
speed and more functional products in the industry.
STMicroelectronics is among the first global companies to recognize the importance environmental
conservation. It began in early 1990s. The release of CO2 gas has been greatly reduced by larger
percentage. The company has received several awards on the environmental conservation.
Visualization of parent-subsidiary of STMicroelectronics network in netdraw
This process will clearly shows us the linkage and the relationship between the STMicroelectronics
parent company and its subsidiaries which are distributed across the globe. The subsidiaries of this
company are directly involved and influenced by the parent company since it has the policies
governing them. Products manufactured and distributed are all the same with brand and everything.
Subsidiaries mainly relies on the parent company of all the changes need on the production of the
products. Semiconductors produced in all the stations are similar and have the same functionality
since they operate under one management and hence all the instructions comes from the parent
company. Research carried in all the countries which has sub-station are collected in that station
then reported to parent company for further analysis then the feedback is given back. Manufacturing
of the semiconductors requires some standards since it should be able to fit all peripheral devices.
Electronic devices needs some certain similarities because during assembling it should always fit.
Such devices are discrete diodes and transistors among other chip devices. Technology has been the
main influencer of such processes (Chandran, KORAPATI, & Nagarajan, 2019).
Using the statistics data analysis, the company has a total number of more than 50,000 employees,
16 more advanced R&D units, 39 designing and application centers, 15 main manufacturing sites
and 78 sales offices in 36 countries. Among 50,000 employees, all of them have area of
specialization and they all contribute to the final output of the product. Research and Development
units are also very important since it is the main factor of understanding the market and its

demands. Designing and application centers are also very important since they design the products
to the standard required and make it easy for assembling. The 15 main manufacturing sites will now
summarize all the process and produce the final product that consumer will be able to use. Finally
78 sales offices distributed in 36 countries can now make the product reach and more accessible by
the consumer. These are the main process that the products have to pass from the processing to the
final consumer.
STMicroelectronics revenues are collected all over the 36 countries. Revenue is received from the
sale of the products among all the 78 sales departments. Large percentage of the revenues are
collected in U.S.A then followed by Europe then the remaining percentage distributed among other
markets. Revenues can be more significant when the standard shipment is applied on market. Main
source of funds is from the government agencies. The government can give out some funds to aid in
research and development activities and this will boost the economy because of industrialization.
Government and other agencies gives out the funds for research and development and in turn they
will get back there money through tax agreed by both parties. Loans also normally assists in
funding of such projects. Money received also through profits and income interests will facilitate
the funding of main projects plans (Ancey, Gousseau, Kokshagina, & STMICROELECTRONICS,
2019).
Network in STMicroelectronics between the parent company and its subsidiaries distributed across
all the world have perfect communication. This has really boosted the production and distribution of
the products to the final consumer. The company has been able to maintained high competition in
the industry. This has been mainly facilitated by research and development. The main challenge is
to maintain cost-effective, high speed and more functional products in the industry. This as mainly
been aided by good communication with the company. Using the analysis, its clear that more
revenues are generated by large number of employees. The company will then be willing to provide
more job opportunities in order to get more revenues generate by its size. The more employees the
more production made hence everything will turn into large scale. It is always important to focus on
the large scale production and it might come with some challenges but also it has benefits as well.
The company produces one of the most wide range of semiconductors in the industry. Such
products are discrete diodes and transistors among other chip devices. The products are
manufactured and designed by use of wide range methods of microelectronics and
telecommunication systems (Wong, Degen, 2017).
Roles Played By The Company Using Its Main Attributes
Using the analysis, its clear that more revenues are generated by large number of employees. The
company will then be willing to provide more job opportunities in order to get more revenues
generate by its size. The more employees the more production made hence everything will turn into
large scale. It is always important to focus on the large scale production and it might come with
some challenges but also it has benefits as well. The company produces one of the most wide range
of semiconductors in the industry. Such products are discrete diodes and transistors among other
chip devices. The products are manufactured and designed by use of wide range methods of
microelectronics and telecommunication systems (The structure of global centrality measures,
2015). The processes are mainly based on current change in technology to fit other peripheral
devices. The company has been able to maintained high competition in the industry. This has been
mainly facilitated by research and development. The main challenge is to maintain cost-effective,
high speed and more functional products in the industry. Using the analysis, its clear that more
revenues are generated by large number of employees. The company will then be willing to provide
more job opportunities in order to get more revenues generate by its size. The more employees the

more production made hence everything will turn into large scale. It is always important to focus on
the large scale production and it might come with some challenges but also it has benefits as well.
The company produces one of the most wide range of semiconductors in the industry. Such
products are discrete diodes and transistors among other chip devices (Microelectronics, 2017). The
products are manufactured and designed by use of wide range methods of microelectronics and
telecommunication systems. The processes are mainly based on current change in technology to fit
other peripheral devices.
The Economic environment has negatively affected the demand and sales of semiconductors
products. The new changes in these products requires the some adjustment and appropriate changes
due to volatility environment in the current global economic. The industry experiences significant
structural changes due to advancement to the technology hence there is need to meet the market
demand and also try our best to out compete the competitors (Saari, Hinzey, Frigo, Proicou, &
Borges, 2015). Our market should have balanced exposure, product innovation, research and
development partnerships.
STMicroelectronics is a globally group of companies controlled and managed by organized matrix
structures which are centralized. Good communication and closer customer management is the main
objective which will enable proper research and development. We also operates through our
subsidiaries which are located in different countries legally. In 2008, Flash Memory Joint Venture
was our biggest achievement and it lead us into 80% market dominance (JBS, 2013).
The company produces one of the most wide range of semiconductors in the industry. Such
products are discrete diodes and transistors among other chip devices. The products are
manufactured and designed by use of wide range methods of microelectronics and
telecommunication systems (Wong, Degen, 2017).
Centrality Measures
1. Degree Centrality
Degree centrality is the number of the ties in a given sort that a node has in the network (Crossley,
2016). It's also evident that the parent company has low degree of centrality because it only relies
on its subsidiaries.

2. Betweenness Centrality
Betweenness centrality is mainly interpreted as flow control within the network. This means that the
companies with high betweeness will have high potential of to threaten the network operation.
(Lozares, López-Roldán, Bolibar, & Muntanyola, 2014).
3. Closeness Centrality

Closeness Centrality is the sum of geodesic distances between the main nodes to all the subsidiary
nodes which indicates how fast a company can acquire information (Arnal, Van Der Tuijn, &
STMicroelectronics, 2019).
4. Eigen vector Centrality
Eigen vector Centrality is the influence that a node can impact on the network. The companies with
high and lower eigen vector Centrality has the great impact on the parent company's network
(Talledo, STMicroelectronics, 2019).

Location, Activity and Size
Location Activity and Size are also the main factor which will determine the effectiveness of the
network of the companies. If the location is in the strategic place the high efficiency of the
communication is expected.

Implications of the industry and country environment on the innovation strategy of the
company
STMicroelectronics has try there best to become the best in industry of electronics in terms of
innovation and implementation of new operation principles. It is now recognized as the best
versatile and fast growing company in terms of technology advancement. Implementation of new
ideas are made within appropriate and convenient time. This has led to the top ranking and a lot of
advantages in terms of employment and also economic development. The company produces one of
the most wide range of semiconductors in the industry. Such products are discrete diodes and
transistors among other chip devices. The products are manufactured and designed by use of wide
range methods of microelectronics and telecommunication systems (Charitopoulos, Pnevmatikatos,
Santambrogio, Papadimitriou, & Pau, 2015). The processes are mainly based on current change in
technology to fit other peripheral devices.
On the other hand it has also influenced the market positively since there products are of high
quality and it can be trusted by the customers hence its competitors have always try there best to
provide perfect products.
Employment by STMicroelectronics companies across the world has also been great advantage. The
universities has been able to produce the highly trained graduates who then go there and exercise
the knowledge and skills they acquired in their courses. Young generation is always motivated and
gain a lot of hopes in field of electronics. High employment rates as also lead to economic
empowerment and high revenues (Brichni, Dupuy-Chessa, GzaraMandran, & Jeannet, 2015).
Environmental conservation has also been the core values and principles of the companies. Over
years the company has managed to reduce the environmental pollution by a great percentage. Due
to advancement in technology, air pollution as been reduced by 60% and water and soil has also
been reduces by around 80%. The world environmental organization has been greatly impressed by
STMicroelectronics companies policies of environmental conservation (Scott, 2012).
The company has been able to maintained high competition in the industry. This has been mainly
facilitated by research and development. The main challenge is to maintain cost-effective, high
speed and more functional products in the industry.
STMicroelectronics is among the first global companies to recognize the importance environmental
conservation. It began in early 1990s. The release of CO2 gas has been greatly reduced by larger
percentage. The company has received several awards on the environmental conservation. Policies
for corporate responsibilities is clearly stated in our principles (JBS, 2013).

Conclusion
STMicroelectronics is a multinational company which deals with the designing, development,
manufacturing and marketing of a wide range of the semiconductors products main used in
microelectronic applications.

References
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