India’s family business companies are diversified in various field and Non- focused.
"A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure, usually involving a parent company and several (or many) subsidiaries."
In India Tata, Brila, Reliance, Adani and many more companies are diversified in more than one field. For Example: Tata Company in working in the field of Telecom, Auto mobile etc. and such company are know as Conglomerate Company or not focused company. While if we look further than most of the American and Japan Companies are well focused. For Example: Intel Microchips work in their computer technology field only.
But it does not mean that India does not have well focused companies. Bajaj, Cadila etc are the example of well focused companies of India. .Bajaj is well focused in Automobile of two wheelers and three wheelers. Similarly cadila is well focused in pharmaceutical field.
We all know that Merit and Demerit are two side of the coin. So, Focused and Conglomerate Companies have both Merit and Demerit. In Conglomerate Companies, risk is well distributed and it forms a basic for management practices.
Let’s have look over one well famous American Company named General motors whose former chairman Jack wells is considered as a great man for his various practices. Management practices of the jack are as follow;
1. He adopts entrepreneurial culture rather than hieratical culture. Entrepreneurial culture is different from other in the sense that subordinate are free to express their ideas and suggestion. Futures, subordinate are not punished for their mistake.
2. In order to make it available at the bottom level, Jack Wells reduce the management level to 4 from 9.
3. Jack Wells think about the development of 3 lacs employees and formed discussion forum to discuss various matter without any hesitation.
4. Jack Company’s, General Motors entered in to partnership with G.E.C (of U.K), R.C.A (against Broadcasting and aerospace) and C.G.R (against TBB research).