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1. Institutions research
Definition of conglomerate:
A conglomerate is a combination of two or more corporation in completely
different businesses that fall under one corporate group.
Easy aspect: it is like a parent looking after a lot of children.
The differences
The differences between a conglomerate and a corporation is that a corporation
is a massive company or can be a big group of companies and are ordered to
focus on one main type of media a entity which is recognized in law. Whereas a
conglomerate has more wider and complex structure I need to focus on more
content for the consumer, Conglomerates are classified as corporations still
because they still have a main goal to achieve while working with different
corporations, but not all corporations are classified as conglomerates
Here are examples of conglomerate companies
2. Disney: is a multi national mass media corporation it is based in
Burbank California it has been the worlds second longest broadcasting Disney
was discovered in the year 1923 discovered by a man named Roy O. Disney
And Disney is being aired worldwide.
Benefits of a conglomerate/Corporation
Since Disney has biggest income over all the TV networks you could say that
Disney is on Top of the production bored it is worth (17.2 billon dollars) Disney
hosts a wide range of products; cable, television, publishing, films, theme parks
and etc. so a lot of income comes from those products but also since Disney is the
Conglomerate on top the institution can partly dictate on when the events can
occur any time they want world wide and it can not be stopped.
Disney gets to draw in a certain percent of the company’s income including tax
for example Disney can take a slightly bigger percentage out of NBC then CBS
because of the income is higher from them. Another advantage of being in a
conglomerate is that the companies can assist each other to help diversify their
channels to by putting more types of shows that appeal to the audience and go
other if the channel is suitable for viewing or product being exposed to the open
world. This is useful because it decreases the level of risk within the product for
example ( product not being offensive to no one.
3. Disadvantages to a
conglomerate/corporation
If CBS or NBC has a error within there company whether it is the company going
bust or just a small error in communications and this effect will effect not just the
company it will effect all the companies within entire conglomerate for example
transactions will need to be recalculated to balance out the errors problem.
Another problem that could occur is that if a company wanted to release a new
product all other companies would all need to come to the same verdict the
product needs to benefit all companies as well as the company who is selling it
the product can be proponed if they agree that the product is not going to reach
that margin in profit in six months time