KN:Conglomerate integration occurs when two firms in completely unrelated industries merge or one takes over the other.
App: For example, a food company buying a media firm.
An: This helps spread business risk — if one market performs poorly, the other can maintain overall stability.
24 What is meant by 'conglomerate integration'.
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abdurrehman waseem
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Abdur Rehman khan
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Re: 24 What is meant by 'conglomerate integration'.
[KN] Conglomerate integration is when a business merges with or takes over another business in a completely different industry.
[APP] For example, a technology company buying a restaurant chain.
[AN] This allows the business to use expertise of both businesses, it decreases risks because poor performance in one industry might be balanced by success in another which helps stabilize overall profits and make the business more financially secure.
[APP] For example, a technology company buying a restaurant chain.
[AN] This allows the business to use expertise of both businesses, it decreases risks because poor performance in one industry might be balanced by success in another which helps stabilize overall profits and make the business more financially secure.
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sarah_naeem
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Re: 24 What is meant by 'conglomerate integration'.
[KN]: Conglomerate integration is when a business merges or takes over another business from a completely different market and a stage of production which is also known as diversification.
[APP]: For example, if a clothing company takes over a food company would be a conglomerate integration as they sell different types of products.
[AN]: Thus, this would help the business reduce risk because if the owner faces loss in one market he/she could still be able to balance as they would be getting the profit from other market which could be used to reinvest and grow in the market which would lead to long term survival of the business.
[APP]: For example, if a clothing company takes over a food company would be a conglomerate integration as they sell different types of products.
[AN]: Thus, this would help the business reduce risk because if the owner faces loss in one market he/she could still be able to balance as they would be getting the profit from other market which could be used to reinvest and grow in the market which would lead to long term survival of the business.
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hassanalizafar
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Re: 24 What is meant by 'conglomerate integration'.
[KN] When a business integrates/Merges with another business in a completely different industry/sector.
[APP] For instance, if a smartphone company merges with a coffee chain.
[AN] This lets the business tap into a new market which attract more customers and increase sales revenue. The extra profit can then be reinvested such as in advertising and if one business sale fluctuate the other can cater it cost hence spread the risk.
[APP] For instance, if a smartphone company merges with a coffee chain.
[AN] This lets the business tap into a new market which attract more customers and increase sales revenue. The extra profit can then be reinvested such as in advertising and if one business sale fluctuate the other can cater it cost hence spread the risk.