AODM [Internet]; Aug 2, 2016 [cited 2016 Aug 2]. Available from: http://www.allacronyms.com/AODM. 'AODM', All Acronyms, 2 August 2016, <http://www.allacronyms.com/AODM> [accessed 2 August 2016] All Acronyms, AODM (Aug. 2, 2016, 10:08 AM), available at http://www.allacronyms.com/AODM.
A conglomerate is a corporation that is made up of a number of different, seemingly unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies, which conduct business separately.
Conglomerate diversification is a good means to manage risk as long as you can effectively manage each business, which leads us to the disadvantage. Management may not have the skills or experience to manage the new enterprises.