BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -There are many reasons for conglomerate mergers, such as increased market share, synergy, and cross-selling opportunities. These could take form in advertising, financial planning, research and development (R&D), production, or any other area.

Detailed explanation-2: -Diversification A conglomerate merger provides the merging companies with the advantage of diversification of business operations and target markets. As the merging companies operate in distinct industries and/or markets, the merged company is less vulnerable to declines in sales in one industry or market.

Detailed explanation-3: -The fundamental goal of conglomerate diversification is to increase the acquiring organization’s profitability. With conglomerate diversification, organizations often aim to achieve marketing or production synergy.

Detailed explanation-4: -Mergers are frequently undertaken for diversification reasons. For example, a company may use a merger to diversify its business operations by entering into new markets or offering new products or services.

Detailed explanation-5: -A conglomerate can save a corporation money by operating more than one company under the parent company. The primary purpose of having controlling interests in different companies is to diversify risks in order to lessen the impact of major financial setbacks.