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American retail corporation Walmart has been the world's largest company by revenue since 2014. [1] The list is limited to the largest 50 companies, all of which have annual revenues exceeding US$130 billion. This list is incomplete, as not all companies disclose their information to the media and/or general public. [3]
Wikipedia[note 3] is a free content online encyclopedia written and maintained by a community of volunteers, known as Wikipedians, through open collaboration and the use of the wiki-based editing system MediaWiki. Wikipedia is the largest and most-read reference work in history.[3][4] It is consistently ranked as one of the ten most popular ...
- United States
- International
- Advantages and Disadvantages of Conglomerates
- Media Conglomerates
- Food Conglomerates
- Bibliography
- External Links
The conglomerate fad of the 1960s
During the 1960s, the United States was caught up in a "conglomerate fad" which turned out to be a form of an economic bubble. Due to a combination of low interest rates and a repeating bear-bull market, conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from the 1960s include Gulf and Western Industries, Ling-Temco-Vought, ITT Corporation, Litton Industries, Textron, and Teledyne. The trick was to look for acquisi...
Genuine diversification
In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during the 1980s, General Electric also moved into financing and financial services, which in 2005 accounted for about 45% of the company's net earnings. GE fo...
Mutual funds
With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning a small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett's Berkshire Hathaway, a holding companywhich used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries.
The end of the First World War caused a brief economic crisis in Weimar Germany, permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes, established the most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuil...
Advantages
1. Diversification results in a reduction of investment risk. A downturn suffered by one subsidiary, for instance, can be counterbalanced by stability, or even expansion, in another division. For example, if Berkshire Hathaway's construction materials business has a good year, the profit might be offset by a bad year in its insurance business. This advantage is enhanced by the fact that the business cycle affects industries in different ways. Financial Conglomerates have very different compli...
Disadvantages
1. The extra layers of management increase costs. 2. Accounting disclosure is less useful information, many numbers are disclosed grouped, rather than separately for each business. The complexity of a conglomerate's accounts make them harder for managers, investors and regulators to analyze, and makes it easier for management to hide issues. 3. Conglomerates can trade at a discount to the overall individual value of their businesses because investors can achieve diversification on their own s...
In her 1999 book No Logo, Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates for the purposes of creating synergybetween them: 1. WarnerMedia included several tenuously linked businesses during the 1990s and 2000s, including Internet access, content, film, cable systems and tel...
Similar to other industries there are many companies that can be termed as conglomerates. 1. The Philip Morris group, which once was the parent company of Altria group, Philip Morris International, and Kraft Foodshad an annual combined turnover of $80 bn. Although Phillip Morris International and Kraft Foods were spun off to independent companies. ...
Holland, Max (1989), When the Machine Stopped: A Cautionary Tale from Industrial America, Boston: Harvard Business School Press, ISBN 978-0-87584-208-0, OCLC 246343673.McDonald, Paul and Wasko, Janet (2010), The Contemporary Hollywood Film Industry, Blackwell Publishing Ltd. ISBN 978-1-4051-3388-3"Conglomerate". Encyclopædia Britannica. 2007. Encyclopædia Britannica Online. November 17, 2007.Microsoft Translator is a multilingual machine translation cloud service provided by Microsoft.Microsoft Translator is a part of Microsoft Cognitive Services and integrated across multiple consumer, developer, and enterprise products, including Bing, Microsoft Office, SharePoint, Microsoft Edge, Microsoft Lync, Yammer, Skype Translator, Visual Studio, and Microsoft Translator apps for Windows ...
Jürgen Norbert Klopp (German pronunciation: [ˈjʏʁɡn̩ ˈklɔp] ⓘ; born 16 June 1967) is a German professional football manager and former player who was most recently the manager of Premier League club Liverpool. He is widely regarded as one of the best football managers in the world.[2][3][4][5] Klopp spent most of his playing career ...
BlackRock, Inc. is an American multinational investment company. It is the world's largest asset manager, with $10 trillion in assets under management as of December 31, 2023[update].[1] Headquartered in New York City, BlackRock has 78 offices in 38 countries, and clients in 100 countries. BlackRock is the manager of the iShares group of ...
Taiwan,[II][k] officially the Republic of China (ROC),[I][l] is a country[27] in East Asia.[o] It is located at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the northeast, and the Philippines to the south. The territories controlled by the ...
