Question

Describe/define a “conglomerate” and discuss whether you believe the era of “conglomerates” is over. Be sure to defend your stance. (min 200 words)

Answer 1

A conglomerate is a corporation created of variety of various, ostensibly unrelated businesses. In a conglomerate, one company owns a dominant stake during a range of smaller firms that conduct business individually. The parent company will crop the risks from being during a single market by changing into a conglomerate. The primary major conglomerate boom occurred within the 1960s, and things escalated from there. Several conglomerates square measure multinationals and multi-industry companies. Each one of a conglomerate's subsidiary business runs severally of the opposite business divisions, however, the subsidiaries' management report back to the senior management of the parent company. Collaborating in many alternative businesses facilitate a conglomerate's parent company crop the risks from being during a single market. Doing therefore additionally helps the parent lower prices and use fewer resources. However, there are measure times once a corporation grows too huge that it loses potency. To modify this, the conglomerate might divest. Firms owned by conglomerates have access to internal capital markets, sanctionative additional ability to grow as a corporation. A conglomerate will portion capital for one among their firms if external capital markets aren’t providing as kind terms the corporate desires.

From my point of view conglomerate company isn't over, however, a brand-new innovation vogue appeared for instance of Amazon company.

They're currently simply dressed up with a touch of geographic area aptitude, and dress down within the council chamber with chief executives wearing sneakers. Amazon is simply one among those new-economy conglomerates. Facebook is quickly changing into a conglomerate, too. Amazon came up within the brick-and-mortar grocery business that exists aboard associate degree ever-increasing bevy of disparate interests: the marketing of everything from natural philosophy to dentifrice online; payments and credit; cloud computing; book publishing, other essential product and on and on.
Amazon currently is reaching new height. So, from this we will say that conglomerates has not disappear.

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