What is a Conglomerate?
Conglomerates are corporations that engage in various business pursuits that are completely unrelated in nature. Sometimes referred to as a multi-industry corporation, the assets of a conglomerate will be used to set up business operations in two or more fields that have nothing to do with one another. The basic idea behind a conglomerate corporation is to ensure that there is enough generated revenue from all the business interests to allow for the continued operation of each business enterprise. This would be true even if one of the interests is currently experiencing a downturn in revenue. The concept of a conglomerate or multi-industry corporation is not new. Since the 1960’s, the model has become increasingly common throughout the world. This approach has been a great benefit to many long time companies that found it necessary to redefine their purpose in light of changing technology. In some cases, becoming a conglomerate meant the ability to continue serving a shrinking traditio
A conglomerate is a corporation that owns many companies in different businesses. Some companies seem to specialize in buying smaller companies and forming one larger and larger conglomerate. Companies that are so diverse can be difficult to manage, however, and sometimes the subsidiary companies are spun off on their own again.
