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What are the advantages of conglomerate diversification?

Here are some advantages of conglomerate diversification: People’s spending patterns alter as the economy changes. Diversifying into many industries or product lines may help an organization maintain a sense of equilibrium during these ups and downs Within a single investment, there will always be negative shocks.

What is an example of conglomerate diversification?

An example of conglomerate diversification would be Tata Group, which was founded in 1868 and diversified from its humble beginnings as a hotel company into a global multinational encompassing 100 individual companies.

What is a conglomerate company?

Conglomerates are companies that either partially or fully own a number of other companies. Not long ago, sprawling conglomerates were a prominent feature of the corporate landscape. Vast empires, such as General Electric and Berkshire Hathaway, were built up over many years with interests ranging from jet engine technology to jewelry.

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