Creativity and innovation are the major aspects of an Advertising Agency and there are several departments in the agency including the art department, design department, editing department, purchases, human resource, finance, creative department etc. The advertising agencies start their operations by designing some local ads for the news paper and grow in to making TV commercials and movie advertisements. Usually when the advertising agency grows, there will be a Mother Advertising Agency where the entire operations will be centralized and the work will be allotted to the subsidiaries of the Mother Advertising Agency that are located in various locations to service the clients in a better way. The mother advertising or the parent advertising company will be having all the control and the crucial decision making is done in the parent company and the main aim of establishing subsidiaries is to get near the clients place and service them better. This will be the position and relationship between this advertising agency and its subsidiaries during the initial stages of expansion and when the company grows nationally and internationally, there will be a high degree of decentralization and the subsidiaries will be allowed to take clients individually and make decisions on their own without the interference of the Mother Advertising Agency. The role of the Mother Advertising Agency gets limited as the company grows in size and the controls that the Mother Advertising Agency had also will be liberal over the subsidiaries. There might be problems both in centralizing and decentralizing the operations between the subsidiaries and the Mother Advertising Agency but the end result and the main purpose of the company is to progress forward. In the centralized operation type, the Mother Advertising Agency has more control over the subsidiaries and only the client service is done in the subsidiaries but in the decentralized type of operation, the Mother Advertising Agency has minimum controls over the subsidiaries and there will be a monthly or an annual review to review the operations. The importance given to the Mother Agency diminishes over a period of time and this company also becomes one among the subsidiaries in the long run. The most popular companies make the Mother Advertising Agency as their flag ship brand and make it popular among the subsidiaries and make the Mother Advertising Agency as a standard for all the subsidiaries to follow and compete with each other.