The conglomerate is made up of The meaning of the word conglomerate. This concept in medicine Efforts followed the path of producing homogeneous products (horizontal integration), technologically related industries

The conglomerate is made up of The meaning of the word conglomerate. This concept in medicine

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).

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.

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 active 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 leading. 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 give the management team the so-called "golden parachutes" so that they quickly leave the company without too much harm 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.

Thesaurus of Russian business vocabulary

Conglomerate

Syn: cluster, mass

Terminological dictionary of banking and financial terms

Conglomerate

A company whose line of business includes two or more unrelated business 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.Under the terms of the conglomerate, a high degree of independence of companies in it and decentralization of management are preserved.

Political Science: Dictionary-Directory

Conglomerate

One of the modern forms of economic associations. Originated in the 1960s. (mainly in the USA). The formation of a conglomerate occurs through functional mergers (combining firms related in the production process) or through investment mergers (association of firms without industrial community).

Dictionary Efremova

Conglomerate

m. Mountain breed consisting of a seserned pebble with an admixture of sand, gravel.
m.

A mechanical connection of heterogeneous.
Modern monopolistic association of enterprises belonging to various economic areas and non-direct production cooperation.

Dictionary of Ozhegov

ConglometerBUT T, a, m.

1. Mechanical connection of Chegon. Heterogeneous, indiscriminate mixture (book). C. Opinions.

2. Chip mountain breeding bag with sand, gravel and boulders (special).

| arr. conglomerate Aya, oh.

Dictionary Ushakov

Conglomerate

Conglomere T. , conglomerate, husband. (Lat. Conglomeratus – bought) (Book. ).

1. Unsystematic combination of heterogeneous parts and objects (in anti-counter harmonious combination). This is not a theory, but just a conglomerate of various opinions.

2. Mountain breed consisting of heterogeneous individual pieces crafted by some other homogeneous rock (Geol. ).

encyclopedic Dictionary

Conglomerate

One of the modern forms of economic associations. Originated in the 1960s. (mainly in the USA). The formation of a conglomerate occurs through functional mergers (combining firms related in the production process) or by investment mergers (association of firms without industrial community)
(from lat. Conglomeratus is crowded), a mechanical connection of something heterogeneous.
Strembrained sedimentary rock; Sampled pebble with sand, gravel and boulders.

Brockhaus and Efron Encyclopedia

Conglomerate

Such a chip breed of sedimentary origin, which consists of retreated or part of rounded debris, so-called gallery one or several rocks associated with some intermediate mass of hydrochemical origin; This mass is called cement. The magnitude of the gallets can reach the size of the human head and even much more; On the other side with a decrease in the magnitude of the galley to the size of the grains, breeds transition from K. to sandstones are obtained. In the form of a gallery there is K. transitional to breccias. If pebbles K. belong to all to the same breed, then K. gets the name of the monogenic, if different is called polygenic. In addition, the K. still in the composition of the gall, for example, siliceous, granite, greenflaw to.; By the nature of cement, such as lime, ferrous, clay, etc. K.occur in 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.

In Latin, glomeris is a ball. "Conglomerate", thus, is rounded concretions joined together, cemented pebbles, glued pebbles. In geology, rocks are called conglomerates. , representing a rounded stone mass, "drowned" in clay, marl, iron oxides or any other natural cements.

The closest "relatives" of the conglomerate are and, however, breccias are formed from pointed fragments of stone, and tuff is a product of volcanic activity.

Many of the conglomerates are very decorative: multi-colored boulders, heterogeneous pebbles form a bizarre ornament on the saw cut of a conglomerate sample. A strict section pattern is inherent in conglomerates composed of a limited amount of minerals.

Varieties of conglomerates

Polymix (also called polymictic) conglomerates can contain pebbles of various sizes and various mineral affiliations.

Origin of conglomerates

The gaps between the pebbles are filled with loose rocks. Over time, the layers are compacted, squeezed, hardened, turning into a conglomerate monolith. In time, the process of formation of conglomerates stretches over hundreds of thousands of years.

In nature, pseudoconglomerates are also formed. Such rocks are the result of the processes of chemical replacement of minerals, affecting only certain types of pebbles in the layers. Destroyed minerals turn into cement, but the transformation is rarely complete. In the cement of pseudoconglomerates, inclusions of unchanged primary material usually remain.

Conglomerate properties

The heterogeneous structure of the stone complicates the mechanical processing of the conglomerate. It is not easy to cut evenly and grind a conglomerate slab with high quality. That is why as a building and finishing material a conglomerate of roads.

Often conglomerates are valuable raw materials for the mining industry.In the channels of gold-bearing rivers, conglomerates with a high content of gold and platinoids are found. The erosion of kimberlite pipes results in conglomerates containing garnets and diamonds. Frequent and conglomerated ores of various metals.

The artistic potential of the conglomerate

Along with multicomponent conglomerates, monocomponent stone is also valued. Conglomerates of red-brown, blue-gray, green-brown shades are expressive. Pedestrian alleys, walking areas protected by canopies of the territory are successfully paved with such stone.

However, it should be borne in mind that anthropogenic and weather loads can lead to uneven wear of the material.

Artificial conglomerates

Artificial pebbles are obtained by tumbling – rounding stone fragments in volumetric cylindrical mills. The quality of such pebbles, as a rule, is lower than that of natural stone: losses are too great when finishing the chipped material to an ideal shape. However, in some cases, manufacturers do not take into account the loss of raw materials and energy costs.

Conglomerates of industrial production are well processed, easily ground, polished to a mirror finish.

It is almost impossible to confuse an artificial conglomerate with a conglomerate of natural origin: the man-made material is of impeccable quality and pretentious beauty.

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 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 Dictionary

– (lat. conglomeratus crowded, compacted) a combination 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, breed, amalgam, set, combination, connection, alloy … Synonym dictionary

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) 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 &LT;lat. comglomeratus crowded. 1. spec. A rock composed of dissimilar cemented particles. BAS 1. In many places, 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 guide

Books

Conglomerate, Sulitzer Paul-Loup. Grégoire Bataille is a promising young 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 …

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 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 companyGeneral 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 benefits when creating new assets: Purchase of shares of an absorbed company against creating any 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. Composition, structure, age of geological samples gives an idea of the development of our planet.

Breed is a totality of minerals. Breeds are classified depending on the amount of minerals contained in them and are divided into 2 types:

Monomineral – contain only one type of minerals.
Polyminineral – there are several different minerals.

One of the forms of polymineral rocks are conglomerates.

These are samples consisting of 3 components:

Raedback of stones from 1 to 15 cm;
rock rocks 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 (polyminamic), as in the photo above, and homogeneous in composition (monomic), as in the photo below.

This is a concept in medicine.

Conglomerate, from the point of view of medicine, is the connection of any cells, tissues into a single whole.

For example, the lymph nodes conglomerate is formed if the lymph nodes increase in size and are connected to each other. , the dangerous opportunity to rebirth into a malignant tumor or squeezing of organs located next to this abscess of lymph nodes.

Another medical example: Safden Conglomerate – a compound of multiple adhesions after a surgical operation in a dense structure.

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