Diversified Conglomerate
A large corporation with a variety of different business interests and operations, often spread across multiple industries and regions.
Implications
A large corporation that operates in multiple, often unrelated industries, using its diverse business portfolio to reduce risk and capitalize on various market opportunities, typically managed through a decentralized structure.
Example
Example: General Electric (GE) is a diversified conglomerate with businesses in sectors ranging from aviation and healthcare to energy and financial services, allowing it to spread risk and leverage synergies across its operations.
Related Terms
Different from a focused company, which specializes in one industry, a diversified conglomerate operates in multiple sectors, often with distinct business units for each.