24 What is meant by 'conglomerate integration'.

[Sir Afzal Shad]

24 What is meant by 'conglomerate integration'.[2]
Hint: Diversification > Merging with a business in a completely unrelated industry > E.g., a food company buying a clothing company.

[shamaim shakeel]

KN)
Conglomerate integration means when two businesses join together that make completely different products and are in different industries.

(APP)
For example, if a mobile phone company buys a food company, that would be conglomerate integration.

(AN)
This helps the business reduce risk because it earns money from different markets, so if one market fails, the other can still bring profit.

[EmmanWaseem]

It is diversification in which a business merges another business of a different industry
For example a food industry merges with a clothing industry
This creates two different varieties and different product line which will attract the customers

[Aarib Saad]

(KN)It is when a business integrates with a business that is in a completely different industry.
(APP)For instance, if a frozen food producer, starts a joint venture with a clothing company.
(AN)This allows the business to be able to attract a significantly high amount of customers, as the business will be able attract customers from a different market, leading to higher sales revenue being generated, allowing for reinvestment into the business for expansion, like through advertising.

[Fatima ibtehaj]

[KN]Conglomerate integration means when a business merges with or takes over another business that operates in a completely different industry
[APP]If a car manufacturer takes over a food company, that would be conglomerate integration because the two businesses operate in unrelated industries.
[AN]This can make the overall business more stable leading towards steady cashflows which will put less financial burden on the business

[Arham Qadri]

[KN] When a business takes over another business away from its original industry.
[APP] For example if furniture manufacturers start joint venture with a shoe retailor.
[AN] This will attract customers which will lead to high sales so more revenue being generated .

[Aayan Zaidi]

KN: Conglomerate integration is when a business joins or merges with another in a completely different industry.
APP: E.g if a car company buys a food company, that's conglomerate integration.
AN: It helps spread risk because they business doesn't depend on just one market.

[Hajra]

K: Conglomerate integration means when a business joins with another business in a completely different industry.
App: For example, a car company merging with a clothing brand.
An: This helps the business spread risk, as it will not depend on just one market or product.

[Abdullah Altaf]

[KN] Conglomerate integration is the merging of a company with another business in a completely different and unrelated industry.
[APP] For instance, a technology firm acquires a hospitality group (hotels, resorts). This allows the company to tap into new consumer bases and market segments, unlocking growth and creating a more resilient business model.
[AN} This diversification strategy reduces reliance on a single market or industry, reducing risks associated with economic downturns or changes in consumer preferences in one sector. By operating in multiple, unrelated industries, the conglomerate can generate stable cash flows and improve its overall financial performance.

[Abdullah Mohsin]

[KN] When a business takes over another business that sells in a completely different market.
[APP] For example, a car manufacturer like Honda takes over a chips producer like Lays. This allows the company to diversify its production and reduce reliance on the car market.
[AN] This helps spread business risk, as a fall in the demand for cars may be balanced by a rise in demand for chips, ensuring stable income for the business, allowing it to operate confidentaly in the car market.

[Abdullah Baig]

Conglomerate integration is when a business merges with or takes over another company in a completely unrelated industry, allowing it to diversify its operations and spread risk.
For example, a food company buying a clothing company

[Mamoona Hussain]

KN: Conglomerate integration is when a business merges or takes over another business from a completely different market and a stage of production. This is also known as diversification.
APP: For instance, a car manufacturer takes over or merges with a restaurant.
AN: Due to this, hd will be able to spread the risk (of failure) across different markets so even if the car industry falls, he will still be able to earn a steady revenue through the restaurant, which can be used to either grow in that market or to survive in the car industry, both of which lead to the long term survival of the business. Hence conglomerate integration is one of the most effective ways to survive sudden collapses in the markets.

[M huzaifa jillani]

(KN)
Conglomerate integration happens when two businesses join together that are in completely different industries or markets.
(APP)
For example a food company merging with a mobile phone company is conglomerate integration because their products are unrelated.
(AN)
This helps the business spread risk because if one industry performs badly the other can still make profits keeping the overall business more stable. However managing very different businesses can be difficult as each market needs different skills and strategies.

[Naveen fatima]

[KN] Conglomerate integration happens when a business joins or merges with another business in a complete different industry.
[APP] For example, A car manufacturer merging with a food company would form a conglomerate integration.
[AN] This type of growth helps the business spread its risk because it doesn’t rely on just one market. If one industry performa poorly, The other can still make profits which will keep the overall business steady and stable

[Shaliza khawaja]

when a business merges with or takes over another business in a completely different industry.
For example, a clothing company buying a soft drink manufacturer would be an example of conglomerate integration.
this helps busienss spread risk bc if one business doesn't go well the other can fund it and if both business go well revenue increases, which you can use to enter other market and expand further