Pros and Cons of Conglomerate Integration Flashcards

1
Q

What is conglomerate integration?

A

when two firms from unrelated industries join together

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2
Q

Pros of conglomerate integration

A

risk-bearing EOS (EOS in general)
increased brand awareness
knowledge transfers - dynamic efficiency

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3
Q

Cons of conglomerate integration

A

DEOS
brand dilution
lack expertise

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