What do we call an organization that combines multiple business units, often in different industries, under a single corporate umbrella?

A conglomerate is an organization that consists of several different businesses or business units, often across various industries, all managed under one corporate structure. This approach allows the conglomerate to diversify its operations, reduce risk by operating in diverse markets, and leverage cross-industry synergies.

For instance, a conglomerate may own companies in sectors as varied as technology, pharmaceuticals, and consumer goods. This diversification helps stabilize the overall corporate performance since the different industries can offset potential downturns in any single market.

In contrast, a multinational corporation primarily operates in multiple countries but may not involve the same level of diversification across various industries. A holding company typically owns a controlling interest in other companies, often functioning more as a parent company with less operational integration among its subsidiaries. Meanwhile, a franchise operates under a licensing agreement that allows businesses to operate under a brand name without the same level of ownership or control seen in a conglomerate structure.