conglomérat

A conglomérat is a corporation that owns a collection of unrelated businesses. These businesses typically operate in different industries and markets, and the parent company's role is primarily to manage its portfolio of subsidiaries. The term "conglomérat" is derived from the French word for "heap" or "mass," reflecting the diverse nature of the businesses it encompasses.

Conglomérats can arise through various means, including mergers and acquisitions where a company buys businesses in sectors outside its core operations. This strategy allows a company to diversify its revenue streams, reduce risk by not being overly dependent on a single industry, and potentially achieve economies of scale through shared resources or management expertise. However, managing a highly diversified group of businesses can be challenging, requiring a broad range of strategic and operational knowledge. Critics sometimes argue that conglomérats can lack focus and that the decentralized management structure may lead to inefficiencies. The performance of conglomérats is often evaluated by the profitability and growth of their individual business units, as well as the overall value of the parent company.