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Conglomerate value. Historical dictionary. Dictionary of economic terms

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. Sweets with different fillings in the same box are called assorted, but this delicious combination can also be called a conglomerate (however, "assorted" is more beautiful name for candy mix).

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.

essence economic conglomerate – 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 by absorption small firms different industry focus by a large company or a 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 economical effect interactions (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, ... ... Dictionary 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

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, Dal Vladimir Big legal 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

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 related in the production process) or through investment mergers (association of firms without a production community).

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 union, association of diversified firms operating on different sectors 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 boundary 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) -

CONGLOMERATE CONGLOMERATE (lat. conglameratus - assembled) - 1) an organizational entity in which under a single financial control enterprises (companies) of technologically unrelated industries of production and trade, insurance business, scientific research, design and consulting, publishing, film industry, etc. are concentrated; 2) holding company.

Big legal dictionary. - M.: Infra-M. A. Ya. Sukharev, V. E. Krutskikh, A. Ya. Sukharev. 2003 .

Synonyms:

See what "CONGLOMERATE" is in other dictionaries:

- (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) 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

- (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

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

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, male. (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) 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

conglomerate- a, m. conglomérat m., germ. Konglomerat lat. comglomeratus crowded. 1. spec. A rock composed of dissimilar cemented particles. BAS 1. In many places, the ice was mixed with pebbles and looked like a conglomerate, in which the role of cement ... ... Historical Dictionary of Gallicisms of the Russian Language

conglomerate- Cemented clastic rock, consisting of rounded (rounded) fragments no larger than 2 mm in size. [Glossary of geological terms and concepts. Tomsk State University] conglomerate A group of companies united in a single organization ... Technical Translator's Handbook

Books

Conglomerate, Sulitzer Paul-Loup. Grégoire Bataille is a young promising financier who comes from a modest peasant family. After studying and training in England, he decides to return to France, to his roots, and make…

Efforts went along the path of producing homogeneous products (horizontal integration), technologically related industries (vertical integration according to the scheme: extraction - production - marketing). Now they are uniting simple structures for the production and sale of technologically unrelated products, i.e. It's about expanding the range. economic activity, or diversification of production. The benefits of diversification are well known. This is the possibility of reorienting funds from industries that are in decline to industries that are on the rise (and vice versa) based on the use of the difference in the turnover of capital 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 USA, conglomerates are called, which arise in very short term in absorption a large number firms that are 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 less profit.

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 this organizational form 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 divisions traditional diversified concerns;
financial and economic methods act as the main levers for managing conglomerates, indirectly regulates the activities of divisions, which is at the head of the conglomerate holding company;
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 different countries has its own characteristics. Thus, conglomerates in the United States do not imply absolutely no production commonality between the merged companies, 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 acquiring technology simple businesses 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 pursuit of higher management personnel increase their income, taking into account the use of options as a means of long-term incentives;
orientation to access to new important resources and technologies.

In the 70s. vigorous activity large companies 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. These include such good famous companies such 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: within 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 personnel of companies included in the conglomerate in the order of their acquisition: 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 market value companies often need to pay a bonus to shareholders for losing control of the acquired company, paying a sum to give the management team the so-called "golden parachutes" so that they quickly leave the company without doing too much damage to it. 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.

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