Conglomerate
Conglomerate: A conglomerate is a large Corporation that consists of diverse businesses operating in various industries. This business structure allows a company to spread its risk across different sectors, potentially stabilizing its Revenue and profit streams.
Examples of conglomerates include:
- General Electric (GE): Originally focused on electrical appliances, GE has expanded into aviation, healthcare, and renewable energy.
- Siemens: A global engineering and technology company that operates in sectors such as industry, energy, healthcare, and Infrastructure.
- Berkshire Hathaway: A multinational conglomerate Holding Company with subsidiaries in various industries, including insurance, retail, and energy.
Cases of conglomerate mergers:
- Time Warner and AOL (2000): The merger aimed to combine media and internet services, though it faced challenges and is often cited as a failed merger.
- United Technologies and Raytheon (2020): This merger created a defense and aeroSPACe conglomerate, diversifying operations across multiple sectors.