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What are the Disadvantages of conglomerate?

Updated: 8/16/2019
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9y ago

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Conglomerates can be detrimental to small business. Conglomerates control business ventures of specific industries making it impossible for small businesses to thrive.

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9y ago
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11y ago

1.some managers may resent control outside of their own company

2.there may be friction between lines of authority

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Q: What are the Disadvantages of conglomerate?
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What are Advantages and disadvantages of conglomerate merger?

disadvantages- unlikely economic benefits will be generated for the target or the bidder advantages- diversification


What are the Advantages and disadvantages of conglomerate diversification?

The advantages and disadvantages of conglomerate diversification are as follows: Advantages of conglomerate diversification a. Risk spreading ? entering new products into new markets offers protection against failure of current products and markets. b. High profit opportunities ? Ability to move into high growth profitable industries especially important if current industry is in decline. c. Escape ? from the present business if competition is too hot! d. Better access to capital markets. Disadvantages of conglomerate diversification a. The dilution of shareholders earnings if diversification is into growth industries with high P/E ratios. b. Lack of a common identity and purpose in a conglomerate organization. A conglomerate will be successful only if it has high quality of management and financial ability at head office where diverse operations are brought together. c. Failure in one business will drag down the rest. d. Lack of management experience..


How is conglomerate?

conglomerate is a sedimentary rock


How is meta conglomerate different from conglomerate?

Conglomerate is a sedimentary rock that contains gravel-sized clasts. Metaconglomerate is conglomerate that has undergone metamorphism.


Is conglomerate a clastic rock?

No. Conglomerate is a clastic sedimentary rock.


What is the Characteristics of Conglomerate corporation?

features of conglomerate


What does conglomerate form?

Conglomerate is a sedimentary rock.


What is the color of conglomerate?

Conglomerate is a whitish with grey rock.


What rhymes with Conglomerate?

There are no perfect rhymes for the word conglomerate.


Is conglomerate a biochemical?

No conglomerate is not a biochemical. It is not made from shells.


Does conglomerate react to acid?

No, conglomerate does not react to acid.


Were is conglomerate found?

you can find conglomerate around the world