The process by which a conglomerate is created, as when a parent company begins to acquire subsidiaries. The exchange of goods over great distances goes back a very long time. The conglomerate definition is a type of complex company which operates under several industries. A conglomerate is a large business firm consisting of several different companies. Contains translations by tu chemnitz and mr honeys business dictionary germanenglish. In simple terms, conglomerate is a combination of two or more corporations in a single corporate structure. Conglomeration definition is the act of conglomerating. This article compares the relative merits of five business dictionaries. Conglomerates article about conglomerates by the free. Conglomerates are often used to manage several different companies as a means of diversification across industries. Conglomerate article about conglomerate by the free. Conglomerate definition and meaning collins dictionary. A conglomerate is a firm or business enterprise having different economic activities in different unrelated industries.
Conglomeration definition of conglomeration by merriam. A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. The management dictionary covers over 7000 business concepts from 6 categories. This forms a group of companies that usually involves a single parent company and different subsidiaries. Every one of a conglomerates subsidiary businesses runs independently of the other business divisions, but the subsidiaries management. The acquisition of a soft drink firm by a shoe firm is an example of a. Diversification can be understood as the corporate strategy that a company implements to increase the market share and sales volume by introducing new products in new markets or industry, which is distinct from its core business. According to ansoff matrix, diversification usually requires a company to acquire new skills, new techniques and new facilities. It is also the combination of two or more corporations. A conglomerate acquisition is a merger of firms that are involved in economically unrelated business activities. Last % change is the nominal change in the price of the index from the previous trading days close expressed as a percentage as of.
Such a structure allows for diversification of business risks, but the lack of focus can make managing the diverse businesses more difficult. Conglomerate definition of conglomerate by merriamwebster. A conglomerate is a large business firm consisting of several different companiesthe worlds secondlargest media conglomerate. The firms can belong to different industries or different geographic areas. Economic thinking about questions of business organization has been concerned with markets for products, has assumed that business behavior in each market is. Definition of conglomerate written for english language learners from the merriamwebster learners dictionary with audio pronunciations, usage examples, and countnoncount noun labels.
Dictionary of business and management oxford reference. While some people feel that a corporation enhances the image of a small business, one disadvantage is the potential double taxation. Pt indo tirta suaka, a pig farm owned by indonesias biggest conglomerate, is taking methane released from manure and turning it into power. It will help to demystify terms such as bear hugs, whitegrey knights, cashcows and churning strongly recommendedtes this wideranging and authoritative dictionary contains 7,000 entries covering all areas of business and management, including marketing, organizational behaviour, business strategy, law, and taxation.
Before launching an expansion, decide how becoming a conglomerate will work for your corporation. Such a merger may violate antitrust acts inasmuch as it may have an. Definition of conglomerate from the cambridge academic content dictionary. For example, trust is exemplified as it will only be used on a cambridge. He turned the business into a huge media conglomerate. Tech conglomerate is likely to partner with other large multinational companies around the world.
Improve your vocabulary with english vocabulary in use from cambridge. Large corporation run as a single business, but made up of several firms acquired through mergers or takeovers supplying diverse goods andor services. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more. Conglomerate meaning in the cambridge english dictionary. Create your citations, reference lists and bibliographies automatically using the apa, mla, chicago, or harvard referencing styles. Conglomerate definition, anything composed of heterogeneous materials or elements. Conglomerate firms may emerge through mergers and acquisitions andor investments across a diverse range of industries for a variety of reasons such as minimization of risk, increased access to financial and management resources, and more efficient allocation of. A conglomerate merger is one that brings together two firms with totally different product lines, economic relationships, and functions. Conglomerate, in business, a corporation formed by the acquisition by one firm of several others, each of which is engaged in an activity that generally differs from that of the original. A conglomerate, therefore, is simply gravel bound together by a cement. Dictionary of business fourth edition specialist dictionaries.
Conglomerate definition in the cambridge english dictionary. Simply put, diversification refers to the expansion of business by entering into a completely new. A corporation operating in several different and unrelated enterprises, such as the movie industry, baking, and oil refining. Englishgerman online dictionary developed to help you share your knowledge with others. Browse the definition and meaning of more terms similar to diversification.
The management of such a corporation may wish to diversify its field of operations for a number of reasons. Conglomerate pronunciation in english cambridge dictionary. A conglomerate is a corporation that is made up of a number of different, seemingly unrelated businesses. The vast majority of business carried out in the united states is conducted by companies that have been incorporated. Learn the words you need to communicate with confidence. Business english dictionary deutsch english fh munster. Although not the focus of this paper, the conglomerate discount disappears on average. Conglomerate acquisitions range from shortterm joint ventures to complete mergers. The conglomerate has a number of distinguishing features that, taken together, characterize this type of monopoly. Owning a retail store and a manufacturer that sells to it may work well. Conglomerate diversification monash business school. Oecd glossary of statistical terms conglomerate definition.
This type of company formation is distinctly different from other types and has many advantages. Diversification definition marketing dictionary mba. A corporation consisting of several companies in different businesses. Add the power of cambridge dictionary to your website using our free search box widgets. Links to this dictionary or to single translations are. Ownership or control by one firm of two or more completely unrelated businesses, such as an auto dealership and a restaurant. Proper usage and audio pronunciation plus ipa phonetic transcription of the word conglomerate. Conglomerate firms, internal capital markets, and the. The paper can help explain the crosssectional valuation of both conglomerate and singlesegment firms. Region labels the codes ame and bre show whether a word or sense of a word is used only in american or. Definition of conglomerate noun in oxford advanced learners dictionary. Edwards university of virginia the concept of conglomerate bigness is a useful tool for probing into problems customarily neglected. In a conglomerate, one company owns a controlling stake in a number of.
Conglomerate definition is made up of parts from various sources or of various kinds. However, in a conglomerate, diversification of the business in the companies is normal practice, and usually these companies depict a multiindustry corporate structure. Business preliminary paper with the meaning of having confidence in someone. Global business refers to international trade whereas a global business is a company doing business across the world. Corporation definition entrepreneur small business. Sometimes conglomeration can refer to a time period when many conglomerates. Basic business dictionaries compared rucore rutgers university. Advantages and disadvantages of conglomerates bizfluent. A conglomerate is generally formed when one company expands by acquiring other firms, which it brings together under a single management umbrella. This discount cannot be combined with any other discount or. A conglomerate is a corporation whose multiple business units operate in different, often unrelated, areas. Conglomerate definition advantages of conglomerates.
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