Conglomerate Explanation

Conglomerate Explanation

A conglomerate is something obtained by conglomeration (putting together, stacking, joining fragments). In this way, the conglomerate can arise from the union of one or more substances by means of a binder, in such a way that a compact mass results.

For geology, a conglomerate is a mass that is formed by rounded fragments of different rocks or mineral substances that are joined by a cement. It is a sedimentary rock of the detrital type, with constituent fragments that are larger than those of sand.

It is possible to distinguish between a pudding (a conglomerate of pebbles) and an ossiferous conglomerate (formed by fragments of fossilized bones).

A conglomerate of stars or stellar cluster is a group of stars that are attracted to each other by the force of gravity. Star clusters can be globular or open (also known as galactic).

According to, the cluster analysis, also called clustering, is a technique that seeks to resolve problems related to the classification of data; in other words, it aims to order elements into groups that present a very high level of similarity. These clusters are defined as the class to which their members belong. It is worth mentioning that the points of association between two objects are not always obvious; however, after such an analysis, it can be very useful to have related them into a single group.

Basically, there are two methods through which data can be classified: hierarchical, when the classes divided into the analysis are structured in a nested way; non-hierarchical, the opposite case. In turn, the agglomerative methods consider each object as a class and look for similarities to group them, while the divisive ones start from a large class that includes all the elements, and then the part in as many portions as necessary.

On the other hand, a conglomerate or chipboard is a plate of wood fragments, mixed with glue and pressed. Since it does not require a particular tree species, the cheapest furniture is usually made of this material. It should be mentioned that, although it represents a suitable solution for products such as computer tables, its resistance is much lower than that of a table that has not undergone any process other than polishing and varnishing. In general, chipboard furniture is covered with patterned sheets that simulate the appearance of natural wood.

In another area, a conglomerate of companies is an association of companies through a common structure. Thus, several companies can be part of the same business group and respond to the same owners or shareholders. An example of a conglomerate of companies is multimedia, which brings together different media. In general, all the companies that belong to the same conglomerate share an image, line or philosophy, in such a way that consumers and users see the group as a whole and not as a sum of companies.

Continuing with the corporate theme, a financial conglomerate is a group of firms that cover the benefits offered by banks, insurance companies and investment funds, or two of them. It is important to point out that for the proper development of an association of this type to take place, the level of control and regulation is greater than that of a traditional company, with a specific and well-differentiated purpose. In the same way, the flow of information between the different components implies greater risks, since it is not a closed communication, but an exchange of sensitive data between several companies.

Conglomerate Explanation