What is a conglomerate? See what "conglomerate" is in other dictionaries

Efforts went along the path of producing homogeneous products (horizontal integration), technologically related industries (vertical integration according to the scheme: extraction - production - marketing). Now, simple structures for the production and sale of technologically unrelated products have begun to unite, i.e. it is about expanding the range of economic activity, or diversifying production. The benefits of diversification are well known. This is the possibility of reorienting funds from declining industries to booming industries (and vice versa) based on the use of the difference in capital turnover of various industries, and mitigating seasonal fluctuations in sales, reducing costs, and so on.

Conglomerate- an organizational form of integration of companies, uniting under a single financial control a whole network of heterogeneous, which arises as a result of the merger of various firms, regardless of their horizontal and vertical integration, without any industrial commonality.

In the United States, conglomerates are called conglomerates that arise in a very short time when a large number of firms are acquired, functionally independent of each other.

In recent years, developed countries have formed transnational corporations. Their goal is to make high profits in countries with low tax rates, and in those countries where taxes are high, to accumulate smaller profits.

Transnational concerns are owned or controlled by entrepreneurs in one country, and multinational concerns have an international distribution of capital (General Motors).

Features of conglomerates:

integration within the framework of this organizational form of enterprises of various industries without the presence of a production community. The merged companies have neither technological nor target unity with the main field of activity of the integrating company. Profiling production in conglomerate-type associations takes on a vague outline or disappears altogether;
the companies being merged, as a rule, retain legal and production and economic independence, but are completely financially dependent on the parent company;
significant decentralization of management. Branches of conglomerates enjoy significantly more freedom and autonomy in all aspects of their activities compared to similar structural units of traditional diversified concerns;
financial and economic methods act as the main levers for managing conglomerates; the holding company at the head of the conglomerate indirectly regulates the activities of divisions;
as a rule, a special financial core is formed in the structure of the conglomerate, which, in addition to the holding (pure holding), includes large financial and investment companies.

This integration form in different countries has its own characteristics. Thus, conglomerates in the United States do not imply absolutely no production commonality between the companies being merged, while in the countries of Western Europe, enterprises are in a certain relationship in the production process.

Examples of conglomerates include, in particular, Mitsubishi, Raytheon, BTR, Hanson. Hanson, for example, specializes in the acquisition of technologically simple enterprises in stable market sectors. Hanson seeks to reduce production costs in the acquired company and strictly controls the work of managers, making sure that they fit into the allotted budget. Through tough austerity and control measures, the conglomerate is getting great results from once-losing businesses.

The main way to form conglomerates is the merger and acquisition of firms of various industrial and commercial orientations.

The boom of large diversified companies, i.e. conglomerates, as already noted, fell on the 60s. of the last century, although large conglomerates were created in the 20s. But then their creation was initiated by the tasks of the militarization of the economy. In the 60s, their development took place on a purely commercial basis.

The main motives for conglomerate mergers and acquisitions of companies were:

obtaining a synergistic effect;
providing a broader economic base;
the ability to buy low and sell high;
forecasting changes in the structure of markets or industries;
the desire to improve the image of the company's management;
the desire of top management personnel to increase their income, given the use of options as a means of long-term incentives;
orientation to access to new important resources and technologies.

In the 70s. the vigorous activity of large companies in their diversification continued and was associated with the desire to acquire assets in the fields of electronics and telecommunications.

But in the 80s. conglomerate profits began to decline steadily. Companies that were part of conglomerates performed worse than independent enterprises in the same industries, and new acquisitions brought only huge losses. According to Michael Porter, in the first half of the 80s. Acquisitions by conglomerates of companies in unrelated industries failed 74% of the time.

Among the companies currently listed on the New York Stock Exchange, forty companies are officially classified as conglomerates. They include such well-known companies as General Electric, American conglomerates Textron Inc and United Technologies Corp, British Hanson, Dutch Philips Electronics, Italian Montedison, etc. But all these conglomerates have refocused their activities on the segments in which they are leaders. They are currently acquiring companies in key areas and selling all non-core assets.

There is a drop in the profitability of conglomerates in our time. As the main problems that arise during the functioning of conglomerates, experts name the following:

Excessive diversification, resulting in a gradual but steady decline in the competitiveness of goods and services produced by companies.
Sub-optimization: inside integration forms, the desire to strengthen intra-group cooperative ties usually prevails, despite the weak technological commonality between the companies that are part of the conglomerate. At the same time, each company, of course, seeks to establish the most favorable transfer price for itself. As a result, output products become very expensive and uncompetitive, and mutual claims regarding the level of transfer prices are constantly sorted out by the parent company of the conglomerate.
Motivation of the management staff of companies included in the conglomerate in the order of their absorption: the effectiveness of the work of managers can be irreversibly affected by a change in ownership or their transformation from owners to employees.
Significant funds required to acquire the target company: in addition to paying the market value of the company, a bonus to shareholders for losing control of the acquired company is often required, the payment of an amount to provide the management team with the so-called "golden parachutes" so that they quickly leave the company without causing too much damage her. As a result, huge investments in acquisitions of companies in unrelated industries often only lead to a decrease in the efficiency of the conglomerate as a whole.

The vital activity of a conglomerate largely depends on the level of qualification of top management personnel. The absence of qualified senior managers in the administrative apparatus is tantamount to its "death". The spectacular failures of such seemingly successful conglomerates as Textron, Polly Peck and Maxwell Communications illustrate the validity of this statement. Although this statement is true for other macrostructures.

Hello, dear readers of the blog site. The variety of foreign words in the Russian language dictates the need for their precise interpretation.

Today we will analyze one of such multifunctional concepts - the term "conglomerate". What is it and in what areas is this concept applied.

The concept of a conglomerate - what is it

Like many terms, the word "conglomerate" is of Latin origin. Literally translated "conglomeratus" means " crowded, collected».

A broader interpretation of the translation: a conglomerate is an association of any heterogeneous objects into a single whole.

Situations in which such a combination occurs occur in a wide variety of fields. Candies with different fillings in the same box are called assorted, but this delicious combination can also be called a conglomerate (however, "assorted" is a more beautiful name for a candy mixture).

Another example is when a conglomeration of opinions arises during a discussion. And, of course, this is how they designate one of the five main ones, most of which we already know:

concern
conglomerate

Conglomerate in the economy

In the field of economics, it is a form of integration (association) of companies.

The essence of an economic conglomerate is it is an association of companies operating in different industries, legally independent of each other, under a single financial control. Conglomerates can unite companies within one state or across several countries (transnational concerns).

What does it mean? Imagine a big tree: in order for leaves to appear, it is necessary that the roots receive nutrients and water from the ground, and then this mixture turns into juices and reaches the branches along the trunk, makes buds appear and leaves appear from them.

vertical concerns: many enterprises carry out a single production cycle under the general management at its various stages (from the purchase or extraction of raw materials to the sale of products to the consumer).

An example is Lukoil. It carries out a single chain of technological stages: exploration of hydrocarbon deposits (oil and gas) → extraction of raw materials → transportation → processing → sale to wholesale and retail buyers.

Concern horizontal type unites companies engaged in the production of the same range of products, but for a different contingent of consumers. An example is a brewing company that produces different types of beer in different cities and countries.

Concern, uniting signs of a vertical and horizontal structure, is called mixed, otherwise - a conglomerate.

The formation of a conglomerate occurs through the absorption of small firms of various industries by a large company or the merger of equivalent firms. As a rule, acquired companies do not have any common links (production, marketing, etc.) among themselves.

An example is an American company General Electric”, engaged in the production of equipment, power plants, medical equipment, small arms and even nuclear warheads.

Benefits of Conglomerate Conglomerates

The main advantage of creating conglomerates is to maximize profits and minimize risks. This is achieved by investing in various areas of economic activity.

For example, one of the various productions of the conglomerate, for some reason, ceased to be profitable, became unprofitable. This production is closed, and funding is redirected to the industry, which is currently on the rise. Thus, the association can protect itself from losses.

Other advantageous features concern in the form of a conglomerate:

summing up the economic effect of interaction (much more powerful than the effect of each individual company;
strengthening the reliability of the economic foundation;
the possibility of active introduction into production of innovative achievements of science and technology;
the possibility of joining companies operating in actively developing industries and areas, and getting rid (selling) of (unpromising and unclaimed) assets. The more liquid assets, the greater the possibility of attracting borrowed funds;
economic benefit in creating new assets: buying shares in an acquired company versus creating an enterprise from scratch.

Conglomerates in geology

Geology is the science of the structure and development of the planet Earth, based on the study of rocks. The composition, structure, age of geological samples gives an idea of the development of our planet.

Rocks are a collection of minerals. Rocks are classified depending on the amount of minerals they contain and are divided into 2 types:

Monomineral - contain only one type of mineral.
Polymineral - Several different minerals are present.

One of the forms of polymineral rocks are conglomerates.

These are samples consisting of 3 components:

rounded stones ranging in size from 1 to 15 cm;
rocks of smaller fractions (up to 1 cm), for example, sand;
binder (natural cement - chemical compounds of minerals with oxygen, carbon and hydrogen).

Conglomerates are different in composition (polymictic), as in the photo above, and homogeneous in composition (monomictic), as in the photo below.

This concept in medicine

A conglomerate, from the point of view of medicine, is a combination of any cells, tissues into a single whole.

For example, a conglomerate of lymph nodes is formed if the lymph nodes increase in size and join together. , dangerous by the possibility of degeneration into a malignant tumor or by compression of the organs located next to this cluster of lymph nodes.

Another medical example: adhesive conglomerate - the connection of multiple adhesions after a surgical operation into a dense structure.

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See what "Conglomerate" is in other dictionaries:

CONGLOMERATE- (new lat., from lat. conglomerare to twist into a ball). 1) pieces of different minerals, linked together, but not merged into one mass. 2) an aggregate of dissimilar parts. Dictionary of foreign words included in the Russian language. Chudinov A.N., 1910 ... Dictionary of foreign words of the Russian language

Conglomerate- (conglomerate) A group of companies that have merged into a single organization, although they operate in completely different areas of activity. A conglomerate is usually created by a company seeking to diversify production so as to become relatively ... ... Financial vocabulary

Conglomerate- (lat. conglomeratus crowded, compacted) a compound of something heterogeneous, a disorderly mixture. It has hyponyms: A conglomerate is a sedimentary rock consisting of rounded fragments (pebbles) of various composition, size and shape, ... ... Wikipedia

conglomerate- See mixture ... Dictionary of Russian synonyms and expressions similar in meaning. under. ed. N. Abramova, M.: Russian dictionaries, 1999. conglomerate accumulation, mass, society, mixture; collection, rock, amalgam, set, combination, connection, alloy ... Synonym dictionary

Conglomerate- (conglomerate) A group of companies that have merged into a single organization, although they operate in completely different areas of activity. A conglomerate is usually created by a company seeking to diversify its production so as to become completely ... ... Glossary of business terms

CONGLOMERATE- CONGLOMERATE, in geology, a sedimentary rock that was formed from fragments of pre-existing rocks rounded and treated with water, soldered into a compact mass together with fine-grained sand or silt. Usually a conglomerate is formed in coastal… Scientific and technical encyclopedic dictionary

Conglomerate- cemented gravel. Pebbles (from 1 to 10 cm in size) may be different in composition (K. polymict) or homogeneous (K. monomict). D K. (and some breccias) distinguish 3 constituent elements (Vassoevich ... Geological Encyclopedia

CONGLOMERATE- CONGLOMERATE, conglomerate, husband. (lat. conglomeratus crowded) (book). 1. Unsystematic connection of dissimilar parts and objects (as opposed to harmonious combination). This is not a theory, but simply a conglomerate of various opinions. 2. Rock, ... ... Explanatory Dictionary of Ushakov

CONGLOMERATE- (conglomerate) An enterprise whose activities are carried out in various, almost unrelated industries. A conglomerate merger is understood as the merger of firms operating in different, having nothing in common ... ... Economic dictionary

The section is very easy to use. In the proposed field, just enter the desired word, and we will give you a list of its meanings. I would like to note that our site provides data from various sources - encyclopedic, explanatory, word-building dictionaries. Here you can also get acquainted with examples of the use of the word you entered.

The meaning of the word conglomerate

conglomerate in the crossword dictionary

Economic glossary of terms

Explanatory Dictionary of the Living Great Russian Language, Vladimir Dal

conglomerate

m. lat. stone from heterogeneous fragments, from okroshka, bent with grit or with some kind of bundle; shadowing, dump, -tovy, -tny, spying, dump.

Explanatory dictionary of the Russian language. D.N. Ushakov

conglomerate

conglomerate, m. (Latin conglomeratus - crowded) (book).

Unsystematic connection of dissimilar parts and objects (as opposed to harmonious combination). This is not a theory, but simply a conglomerate of various opinions.

Rock, consisting of heterogeneous individual pieces, cemented by some kind of. another homogeneous rock (geol.).

Explanatory dictionary of the Russian language. S.I. Ozhegov, N.Yu. Shvedova.

conglomerate

The mechanical connection of something. heterogeneous disorderly mixture (book). K. opinions.

Clastic rock - pebbles with an admixture of sand, gravel and boulders (special).

adj. conglomerate, th, th.

New explanatory and derivational dictionary of the Russian language, T. F. Efremova.

conglomerate

m. A rock consisting of cemented pebbles mixed with sand and gravel.

Encyclopedic Dictionary, 1998

conglomerate

coarse clastic sedimentary rock; cemented gravel with an admixture of sand, gravel and boulders.

conglomerate

CONGLOMERATE (from lat. conglomeratus - crowded) mechanical connection of something heterogeneous.

conglomerate

one of the modern forms of economic associations. They emerged in the 1960s. (mainly in the USA). The formation of a conglomerate occurs through functional mergers (association of firms connected in the production process) or through investment mergers (association of firms without a production community) CONGO state formation in the lower reaches of the river. Congo (on the territory of modern Angola and Zaire) in the 13-19 centuries. The ethnic basis is the people of the Congo. Bloom in the middle 15th-16th centuries With the penetration of the Portuguese (1482), the Congo became an important slave trade area. In con. 19th century most of the territory of the Congo became part of the Portuguese Angola.

Big Law Dictionary

conglomerate

(lat. conglameratus - collected) -

organizational formation, in which enterprises (companies) of technologically unrelated industries of production and trade, insurance business, scientific research, design and consulting, publishing, film industry, etc. are concentrated under a single financial control;

holding company.

Conglomerate (economics)

Conglomerate- an association of firms, sometimes a legal entity, which includes companies engaged in entrepreneurial activities in various sectors of the economy. Conglomerates are mainly inherent in emerging markets (for example, the BRICS countries), as well as diversified companies.

As a rule, conglomerates are formed by the acquisition by a large company of several dozens of small and medium-sized firms of various industries and fields of activity that do not have production, marketing or other functional ties among themselves.

Conglomerates are public companies whose shares are traded on stock exchanges, usually at a discount to their net worth.

Some of the best known conglomerate companies are General Electric, Virgin Group and Hitachi.

Conglomerate

Conglomerate- a combination of something heterogeneous, a disorderly mixture, assorted.

Has hyponyms:

Conglomerate - sedimentary rock, consisting of rounded fragments of various composition, size and shape, cemented with clay, lime, silica, etc. It is formed as a result of erosion and redeposition of older rocks.
Conglomerate - type of company, legal entity.
Conglomerate - a mechanical connection of dissimilar parts and objects.

In set theory, a collection of classes, just as a class is a collection of sets.

Conglomerate (rock)

Conglomerate- sedimentary rock, which is a cemented three constituent elements: pebbles or pellets, fragments with a finer filling substance (sand, silt, etc.), and a binder (cement). Carbonates, marls, iron oxides can act as cement. Within the conglomerates there may be other conglomerates.

The main difference between conglomerates and breccias is that in the latter, instead of rounded pebbles, angular fragments predominate.

Examples of the use of the word conglomerate in the literature.

It shows domes composed of massive rock, frozen lava flows, breccias generated by the consolidation of sediments of scorching clouds, conglomerates boulders ejected from eruptive vents or brought by terrible flows of volcanic silt, layers of ash, etc.

Being a place of transition from the external to the internal, the mouth generally turns out to be the locus of transformation, inversion of bodies, and, consequently, their connection into grotesque conglomerates.

The layer consisted of quartz conglomerate, interspersed with sandstones and shales, as is most often found in the wedging out of coal seams.

Gradually, the Celts also reached the Atlantic Ocean, and everything that remained of the Iberian population of Western Europe has now turned into a heterogeneous conglomerate Celto-Iberian tribes.

Terms: Mesozoic, Rhaetian-Jurassic schists, marbles, granite intrusions, metamorphosed red sandstones and conglomerates-- forever imprinted on the first time compiled geological map of Bartang.

At the end of 1997, when conglomerates were unable to pay the interest due on loans, the value of the Korean currency, the won, fell catastrophically.

Materialistic science, blinded by its model of the world, conglomerate mechanistically interacting separate units, unable to recognize the value and vital importance of cooperation, synergy and ecological dependence.

He himself was artificial conglomerate Mongoloid, Negroid and Caucasoid, as well as all the other participants in the project, and was sure that the purebred representatives of the races were missing something.

The rocks here were generally similar to those found in Nemegetu: layers of red clays, sandstones and sands, interbedded with bluish conglomerates.

In Herfordshire, Worcestershire, and Shropshire it expands into a group of strata eight to ten thousand feet thick, consisting of conglomerates, from red, green and white sandstone, from red, green and mottled marl and compacted limestone.

These savings were channeled by the government through the banking system at certain conglomerates in order to capture the markets of certain goods.

Rare transurans were in the frozen conglomerate alloyed rocks weighing about 150,000 tons.

It was all the same sandstones, conglomerates and carbonaceous shales with basalts and porphyrites, covered with a continuous desert tan.

Thick layers of blocky sandstones, alternating with layers of coal shale and massifs conglomerates, formed a gigantic sequence of continental rocks.

The woody part of the colony is a ficus-shaped conglomerate many intertwining trunks, forming a semi-flexible lattice structure of hollow pipes and solid strands, rising in an arc and turning into a scalloped crown.

All dictionaries Ushakov's Dictionary Political Science: Dictionary-Reference Modern Economic Dictionary. 1999 Terminological Dictionary of Banking and Financial Terms Dictionary of Economic Terms Thesaurus of Russian Business Vocabulary Encyclopedic Dictionary Ozhegov's Dictionary Efremova's Dictionary Encyclopedia of Brockhaus and Efron Explanatory Dictionary of the Living Great Russian Language, Vladimir Dal Big Law Dictionary

Dictionary Ushakov

conglomerate

conglomerate t, conglomerate, husband. (lat. conglomeratus - crowded) ( books.).

1. Unsystematic connection of dissimilar parts and objects ( in contrast to harmonious combination). This is not a theory, but simply a conglomerate of various opinions.

2. A rock composed of heterogeneous individual pieces cemented by some other homogeneous rock ( geol.).

Political Science: Dictionary-Reference

conglomerate

Modern economic dictionary. 1999

conglomerate

(from lat. conglomeratus - collected)

decentralization of management.

Terminological dictionary of banking and financial terms

conglomerate

A company whose field of activity includes two or more unrelated commercial activities.

Dictionary of economic terms

conglomerate

(from lat. conglomeratus - collected)

one of the forms of the union, the association of diversified firms operating in different sectors of the market. In the conditions of a conglomerate, a high degree of independence of its member firms and decentralization of management remain.

Thesaurus of Russian business vocabulary

conglomerate

Syn: cluster, mass

encyclopedic Dictionary

conglomerate

Dictionary of Efremova

conglomerate

Encyclopedia of Brockhaus and Efron

conglomerate

Such a clastic rock of sedimentary origin, which consists of rounded or partly rounded fragments, the so-called pebbles, one or more rocks connected by some intermediate mass of hydrochemical origin; this mass is called cement. The size of the pebbles can reach the size of a human head and even much larger; on the other hand, when the size of pebbles is reduced to the size of grains of sand, rocks are obtained that are transitional from sandstone to sandstone. The shape of the pebbles is K. transitional to breccias. If K.'s pebbles all belong to the same breed, then K. is called monogenic, but if they are different, then it is called polygenic. In addition, rocks are also distinguished by the composition of the pebbles, for example, siliceous, granite, and greenstone rocks; according to the nature of the cement, for example, calcareous, ferruginous, clayey, etc. C. are found in the deposits of all systems, where they are coastal formations and often occur at the border of two systems, divisions, suites, or other stratigraphic units. Of the K., the following deserve special mention: nagelflu - tertiary alpine k., which enjoys significant development in the Swiss Alps, in the Caucasus; it consists of fragments of Jurassic sandstones and limestones, as well as various crystalline rocks, bound by yellow or brown ruddy cement; its interesting feature is the mutual imprints and impressions on the pebbles, attributed partly to mechanical causes, pressure, part of the dissolving activity of waters at the points of contact between two pebbles. pudding(Puddingstone) - English Tertiary K., consisting of multi-colored pebbles of flint, connected by hard siliceous or hornfelsed cement. Blue or gold-bearing K. California; siliceous cement contains pebbles of various crystalline rocks and native gold.

F. L.

Big Law Dictionary

conglomerate

(lat. conglameratus - collected) -