Thesaurus of Russian business vocabulary

Conglomerate

Syn: cluster, mass

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)

Modern economic dictionary. 1999

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.

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).

Dictionary of Efremova

Conglomerate

1. m. A rock consisting of cemented pebbles mixed with sand and gravel.
2. m.
   1. Mechanical connection of smth. heterogeneous.
   2. A modern monopolistic association of enterprises belonging to different economic spheres and not connected by direct industrial cooperation.

Ozhegov's dictionary

CONGLOMER BUT T, but, m.

1. Mechanical connection heterogeneous, disorderly mixture (book). K. opinions.

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

| adj. conglomerate, oh, oh.

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.).

encyclopedic Dictionary

Conglomerate

1. 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)
2. (from lat. conglomeratus - crowded), mechanical connection something dissimilar.
3. coarse clastic sedimentary rock; cemented gravel with an admixture of sand, gravel and boulders.

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 to part mechanical reasons, pressure, part of the dissolving activity of waters at the points of contact of 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.

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 Dictionary of the living Great Russian language, Dal Vladimir 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

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 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) -

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's about expanding the range. economic activity, or diversification of production. The benefits of diversification are well known. This is also 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 capital turnover various industries, and mitigation of seasonal fluctuations in sales, cost reduction and so on.

Conglomerate — organizational form 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 when acquiring a large number of 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 smaller profits.

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

• 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 divisions 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 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 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.

• 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:

1. Excessive diversification, resulting in a gradual but steady decline in the competitiveness of goods and services produced by companies.
2. 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.
3. 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.
4. 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 harming it too much. 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.

harmonious combination). This is not a theory, but simply a conglomerate of various opinions.

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

Explanatory Dictionary of Ushakov. D.N. Ushakov. 1935-1940.

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 merged into 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 element(Vassoevich ... Geological Encyclopedia

- (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…

IN modern business various forms of associations and partnerships are gaining popularity. Among such cooperation schemes relevant for many companies is the conglomerate. This term has become an integral part of business everyday life in various countries.

Efficient combination principle

If we turn to the meaning of this form of cooperation, we can find out that a conglomerate is such a scheme for organizing the activities of various companies, in which the integration of several legal entities with unified financial control. Such a merger is usually the result of an acquisition or merger.

In fact, this means that one company or holding owns a large number of diversified firms, including those that do not have a production community. Such integration can occur both horizontally and vertically.

Expanding the meaning of the word conglomerate, it is worth noting the fact that the company exercising financial control of the association may look modest compared to the firms that are part of the network. The peculiarity of such small holdings is that they have sufficient potential for effective management and financing, and therefore are dominant.

Reasons for the appearance

Such a form of monopoly as integration under a single financial management, began to actively develop in the late 50s of the twentieth century on the territory of capitalist states. Conglomerates quickly became popular for the reason that they allowed the efficient accumulation of capital at a time when many companies were experiencing an industry crisis.

The value of this strategy lies in the fact that the dominant holding can go beyond its own activities and invest in new promising areas that are engaged in firms that have become part of the structure. This allows monopolies to significantly reduce the risk of losing profits and receive high income from development. modern industries production.

Key features of the internetwork

Considering that a conglomerate is an organizational form in which various companies are effectively integrated, the principle of operation of such a structure is especially interesting.

The features of such a network are as follows:

Companies that merge under the financial direction of a particular holding often retain their industrial and legal autonomy, but are completely dependent on its investments;

In most cases, a conglomerate is a structure in which there is no predominant sphere of production, in other words, there is no focus on a specific activity profile;

Dominant holding for effective system control uses various financial and economic management tools that have an indirect nature of regulating the activities of firms;

In most cases, the association is rarely financed by one firm, the conglomerate often develops based on the resources of several investment companies in addition to pure holding.

This principle of organization has proved its effectiveness and has allowed many small industries to receive necessary resources that were not previously available to them. Holdings, in turn, through a monopoly based on integration, open up profitable and safe investment opportunities.

Types of conglomerates

If you pay attention to the various forms of merger in many civilized countries, you will notice that they have some differences.

For example, in Western Europe, a conglomerate is an integration form in which companies are required to have a certain relationship in the direction of production development.

Overseas experience

If you pay attention to the United States, you can see the opposite approach to the issue of company mergers: American structures based on the principle of merger under the control of a specific holding company do not emphasize the commonality of activities of various firms.

In essence, a conglomerate in the United States is a name given to large concerns that absorb a large number of companies in a short period of time. At the moment, there are monopolies that combine production capacity on several continents.

Vivid examples of successful integration

There are many cases in modern history when such a management scheme was successfully used as the integration of firms with a different profile of activity into a structure under a single financial management.

studying successful examples conglomerates, it is worth paying attention to the British company Hadson pic., which included more than 600 subsidiaries in many countries of the world.

The management of this business giant used the following strategy: they acquired conglomerates that were no longer active, after which they began to sell each company separately. The idea was that the sale of firms that are part of the structure would bring more money than was spent on acquiring the monopoly.

Currently, the stocks of 40 companies are traded on the New York Stock Exchange, which are officially recognized as conglomerates. Among them are Phillips Electronics, Montedison, General Electric, Hanson, United Technologies, Textron Inc. and others.

An interesting fact is that in today's market conditions, these conglomerates have changed their priorities in their activities, focusing on the development and acquisition of those enterprises that develop in their key areas.

Reasons for the decline in the profitability of monopolies

In fact, the possibility of obtaining excess profits is the main reason why there is still such a form of integration of various firms as a conglomerate. The company taking over financial control, initially expects the most profitable investment. But this does not change the fact that at the moment there is a significant decline in the profits of many monopolies, and there are objective reasons for this.

First of all, the effectiveness of conglomerates is reduced due to excessive diversification, which leads to a noticeable loss in product quality, and, as a result, to low competitiveness.

The insufficiently competent system of motivating the personnel of companies that are part of the monopoly also plays its negative role.

Another obstacle to stable and high profits is the constant initiative on the part of many firms to increase their transfer value. As a result, the products of most companies owned by the central holding are too expensive to successfully compete on the market. modern market. Moreover, the parent company constantly has to deal with claims regarding the fairness of determining the transfer price of a particular company.

We should not forget about the high cost of many industries that become the target of conglomerates: many of them require significant investments. In addition to the fact that the firms themselves can be very expensive, the monopoly is often forced to provide financial compensation to shareholders who have lost the ability to control the acquired company.

Considering that many of the enterprises that are part of the conglomerate have a different profile of activity, their high cost only complicates the process of increasing profits.

Conclusion

The following conclusion can be drawn: those monopolies that operate today have a chance for a successful future only if there is a highly qualified team of top managers who are able to competently draw up and implement a conglomerate development strategy.