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43-719: Attock Oil Company , informally called Attock Group , also known as the Pharaon Group , is a UK-domiciled conglomerate company based in Manchester , England , United Kingdom . It is the sole vertically integrated oil conglomerate company active in Pakistani market. The group is owned by the Pharaon family . Attock Oil Company Limited (AOC) was incorporated in England on 1 December 1913, and extended into Pakistan as

86-429: A market inefficiency , which undervalues the true strength of these stocks. In her 1999 book No Logo , Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates to create synergy between them: A relatively new development, Internet conglomerates, such as Alphabet , Google's parent company belong to the modern media conglomerate group and play

129-587: A 150 MW power plant in Rawalpindi District . The Attock Oil Company consists of the following companies: Conglomerate (company) A conglomerate ( / k ə ŋ ˈ ɡ l ɒ m ə r ə t / ) is a type of multi-industry company that consists of several different and unrelated business entities that operate in various industries. A conglomerate usually has a parent company that owns and controls many subsidiaries , which are legally independent but financially and strategically dependent on

172-548: A branch office of a foreign company for the principal business of exploration, drilling and production of petroleum products. AOC met its first oil discovery in 1915 at Khaur , Attock District . Thereafter, AOC made significant contributions in promoting oil and gas exploration in the country by opening up the Potohar Basin as a new oil province. The Potohar Basin remained the only oil producing basin in Pakistan till

215-486: A disorienting and demoralizing experience for executives at acquired companies—those who were not immediately laid off found themselves at the mercy of the conglomerate's executives in some other distant city. Most conglomerates' headquarters were located on the West Coast or East Coast , while many of their acquisitions were located in the country's interior. Many interior cities were devastated by repeatedly losing

258-549: A focus in Asia.) In Japan, a different model of conglomerate, the keiretsu , evolved. Whereas the Western model of conglomerate consists of a single corporation with multiple subsidiaries controlled by that corporation, the companies in a keiretsu are linked by interlocking shareholdings and a central role of a bank. Mitsui , Mitsubishi , Sumitomo are some of Japan's best-known keiretsu, reaching from automobile manufacturing to

301-769: A major role within various industries, such as brand management . In most cases, Internet conglomerates consist of corporations that own several medium-sized online or hybrid online-offline projects. In many cases, newly joined corporations get higher returns on investment , access to business contacts, and better rates on loans from various banks. Similar to other industries many companies can be termed as conglomerates. Fad Fads are objects or behaviors that achieve short-lived popularity but fade away. Fads are often seen as sudden, quick-spreading, and short-lived events. Fads include diets , clothing, hairstyles, toys, and more. Some popular fads throughout history are toys such as yo-yos , hula hoops , and fad dances such as

344-457: A part of the obsession. Some people might see those who follow certain fads as unreasonable and irrational. To these people, the fad is ridiculous, and people's obsession of it is just as ridiculous. The third is, after it has reached a peak, it drops off abruptly and then it is followed by a counter obsession. A counter obsession means that once the fad is over, if one engages in the fad they will be ridiculed. A fad's popularity often decreases at

387-639: A small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett 's Berkshire Hathaway , a holding company which used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries. The end of the First World War caused a brief economic crisis in Weimar Germany , permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes , established

430-400: Is already popular at the time. Recreation and style faddists may try out variations of a basic pattern or idea already in existence. Another way of looking at the spread of fads is through a symbolic interaction view. People learn their behaviors from the people around them. When it comes to collective behavior, the emergence of these shared rules, meanings, and emotions are more dependent on

473-472: Is currently China's largest civilian-run conglomerate by revenue. In South Korea , the chaebol is a type of conglomerate owned and operated by a family. A chaebol is also inheritable, as most of the current presidents of chaebols succeeded their fathers or grandfathers. Some of the largest and most well-known Korean chaebols are Samsung , LG , Hyundai Kia and SK . In India, family-owned enterprises became some of Asia's largest conglomerates, such as

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516-571: The Aditya Birla Group , Tata Group , Emami , Kirloskar Group , Larsen & Toubro , Mahindra Group , Bajaj Group , ITC Limited , Essar Group , Reliance Industries , Adani Group and the Bharti Enterprises . In Brazil the most important conglomerates are J&F Investimentos , Odebrecht , Itaúsa , Camargo Corrêa , Votorantim Group , Andrade Gutierrez , and Queiroz Galvão. In New Zealand, Fletcher Challenge

559-493: The Macarena , floss and the twist . Similar to habits or customs but less durable, fads often result from an activity or behavior being perceived as popular or exciting within a peer group , or being deemed " cool " as often promoted by social networks . A fad is said to "catch on" when the number of people adopting it begins to increase to the point of being noteworthy or going viral . Fads often fade quickly when

602-652: The United States , conglomerates became popular in the 1960s as a form of economic bubble driven by low interest rates and leveraged buyouts. However, many of them collapsed or were broken up in the 1980s due to poor performance, accounting scandals, and antitrust regulation. In contrast, conglomerates have remained prevalent in Asia, especially in China , Japan , South Korea , and India . In mainland China , many state-affiliated enterprises have gone through high value mergers and acquisitions , resulting in some of

645-579: The highest value business transactions of all time. These conglomerates have strong ties with the government and preferential policies and access to capital. During the 1960s, the United States was caught up in a "conglomerate fad " which turned out to be a form of an economic bubble . Due to a combination of low interest rates and a repeating bear-bull market , conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from

688-440: The 1960s include Gulf and Western Industries , Ling-Temco-Vought , ITT Corporation , Litton Industries , Textron , and Teledyne . The trick was to look for acquisition targets with solid earnings and much lower price–earnings ratios than the acquirer. The conglomerate would make a tender offer to the target's shareholders at a princely premium to the target's current stock price. Upon obtaining shareholder approval,

731-627: The 1980s, General Electric also moved into financing and financial services , which in 2005 accounted for about 45% of the company's net earnings. GE formerly owned a minority interest in NBCUniversal , which owns the NBC television network and several other cable networks . United Technologies was also a successful conglomerate until it was dismantled in the late 2010s. With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning

774-603: The United States, some of the examples are The Walt Disney Company , Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company . Another such conglomerate is J.D. Irving, Limited , which controls a large portion of the economic activities as well as media in the Province of New Brunswick . Some cite the decreased cost of conglomerate stock (a phenomenon known as conglomerate discount ) as evidential of these disadvantages, while other traders believe this tendency to be

817-455: The conglomerate usually settled the transaction in something other than cash, like debentures , bonds , warrants or convertible debentures (issuing the latter two would effectively dilute its shareholders down the road, but many shareholders at the time were not thinking that far ahead). The conglomerate would then add the target's earnings to its earnings, thereby increasing the conglomerate's overall earnings per share . In finance jargon,

860-426: The cues of the situation, rather than physiological arousal. This connection to symbolic interactionism, a theory that explains people's actions as being directed by shared meanings and assumptions, explains that fads are spread because people attach meaning and emotion to objects, and not because the object has practical use, for instance. People might adopt a fad because of the meanings and assumptions they share with

903-476: The dangers of the fad. Not everyone completely abandons the fad, however, and parts may remain. A study examined why certain fads die out quicker than others. A marketing professor at the University of Pennsylvania's Wharton School of Business, Jonah Berger and his colleague, Gael Le Mens, studied baby names in the United States and France to help explore the termination of fads. According to their results,

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946-401: The early 1970s. Although the company was established by British entrepreneurs and investors control was purchased by Saudi entrepreneur investor Gaith Pharaon in the 1970s. Pharaon's offspring still the company and the spinoffs and purchased subsidiaries. In 2004, Attock invested US$ 400 million in Pakistan. It included: petroleum pipeline from Machike, Lahore to Taru Jabba, Peshawar , and

989-467: The end came in January 1968, when Litton shocked Wall Street by announcing a quarterly profit of only 21 cents per share, versus 63 cents for the previous year's quarter. This was "just a decline in earnings of about 19 percent", not an actual loss or a corporate scandal, and "yet the stock was crushed, plummeting from $ 90 to $ 53". It would take two more years before it was clear that the conglomerate fad

1032-771: The examples are Adamjee Group , Dawood Hercules , House of Habib , Lakson Group and Nishat Group . In the Philippines , the largest conglomerate of the country is the Ayala Corporation which focuses on malls , bank , real estate development , and telecommunications . The other big conglomerates in the Philippines included JG Summit Holdings , Lopez Holdings Corporation , ABS-CBN Corporation , GMA Network, Inc. , MediaQuest Holdings , TV5 Network, Inc. , SM Investments Corporation , Metro Pacific Investments Corporation , and San Miguel Corporation . In

1075-468: The fad, some might start to see it as "overcrowded", and it no longer holds the same appeal. Many times, those who first adopt the fad also abandon it first. They begin to recognize that their preoccupation with the fad leads them to neglect some of their routine activities, and they realize the negative aspects of their behavior. Once the faddists are no longer producing new variations of the fad, people begin to realize their neglect of other activities, and

1118-466: The faster the names became popular, the faster they lost their popularity. They also found that the least successful names overall were those that caught on most quickly. Fads can fit under the broad umbrella of collective behavior , which are behaviors engaged in by a large but loosely connected group of people. Other than fads, collective behavior includes the activities of people in crowds , panics, fashions , crazes, and more. Robert E. Park ,

1161-719: The headquarters of corporations to mergers, in which independent ventures were reduced to subsidiaries of conglomerates based in New York or Los Angeles. Pittsburgh, for example, lost about a dozen. The terror instilled by the mere prospect of such harsh consequences for executives and their home cities meant that fending off takeovers, real or imagined, was a constant distraction for executives at all corporations seen as choice acquisition targets during this era. The chain reaction of rapid growth through acquisitions could not last forever. When interest rates rose to offset rising inflation, conglomerate profits began to fall. The beginning of

1204-661: The highly popularizing effect of Oprah's Book Club . Though some consider the term trend equivalent to fad , a fad is generally considered a quick and short behavior whereas a trend is one that evolves into a long term or even permanent change. In economics , the term is used in a similar way. Fads are mean-reverting deviations from intrinsic value caused by social or psychological forces similar to those that cause fashions in political philosophies or consumerisation . Many contemporary fads share similar patterns of social organization. Several different models serve to examine fads and how they spread. One way of looking at

1247-425: The man who created the term collective behavior, defined it as "the behavior of individuals under the influence of an impulse that is common and collective, an impulse, in other words, that is the result of social interaction". Fads are seen as impulsive, driven by emotions; however, they can bring together groups of people who may not have much in common other than their investment in the fad. Fads can also fit under

1290-503: The most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuilding, hotels, newspapers, and other enterprises. The best-known British conglomerate was Hanson plc . It followed a rather different timescale than the U.S. examples mentioned above, as it was founded in 1964 and ceased to be a conglomerate when it split itself into four separate listed companies between 1995 and 1997. In Hong Kong, some of

1333-652: The new businesses they had recently purchased, and by the mid-1970s most conglomerates had been reduced to shells. The conglomerate fad was subsequently replaced by newer ideas like focusing on a company's core competency and unlocking shareholder value (which often translate into spin-offs ). In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during

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1376-436: The ones that introduce certain fads, but other people must choose to adopt those fads. Others may argue that not all fads begin with their adopters. Social life already provides people with ideas that can help create a basis for new and innovative fads. Companies can look at what people are already interested in and create something from that information. The ideas behind fads are not always original; they might stem from what

1419-534: The other people who have adopted that fad. People may join other adopters of the fad because they enjoy being a part of a group and what that symbolizes. Some people may join because they want to feel like an insider. When multiple people adopt the same fad, they may feel like they have made the right choice because other people have made that same choice. Primarily, fads end because all innovative possibilities have been exhausted. Fads begin to fade when people no longer see them as new and unique. As more people follow

1462-731: The parent company. Conglomerates are often large and multinational corporations that have a global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions , spin-offs , or joint ventures . Conglomerates are common in many countries and sectors, such as media , banking , energy , mining , manufacturing , retail , defense , and transportation . This type of organization aims to achieve economies of scale , market power, risk diversification , and financial synergy. However, they also face challenges such as complexity, bureaucracy , agency problems, and regulation . The popularity of conglomerates has varied over time and across regions. In

1505-413: The perception of novelty is gone. The specific nature of the behavior associated with a fad can be of any type including unusual language usage , distinctive clothing , fad diets or frauds such as pyramid schemes . Apart from general novelty, mass marketing , emotional blackmail , peer pressure , or the desire to conformity may drive fads. Popular celebrities can also drive fads, for example

1548-714: The production of electronics such as televisions. While not a keiretsu, Sony is an example of a modern Japanese conglomerate with operations in consumer electronics , video games , the music industry , television and film production and distribution , financial services , and telecommunications . In China, many of the country's conglomerates are state-owned enterprises , but there is a substantial number of private conglomerates. Notable conglomerates include BYD , CIMC , China Merchants Bank , Huawei , JXD , Meizu , Ping An Insurance , TCL , Tencent , TP-Link , ZTE , Legend Holdings , Dalian Wanda Group , China Poly Group , Beijing Enterprises , and Fosun International . Fosun

1591-419: The spread of fads is through the top-down model, which argues that fashion is created for the elite, and from the elite, fashion spreads to lower classes. Early adopters might not necessarily be those of a high status, but they have sufficient resources that allow them to experiment with new innovations. When looking at the top-down model, sociologists like to highlight the role of selection. The elite might be

1634-406: The transaction was " accretive to earnings." The relatively lax accounting standards of the time meant that accountants were often able to get away with creative mathematics in calculating the conglomerate's post-acquisition consolidated earnings numbers. In turn, the price of the conglomerate's stock would go up, thereby re-establishing its previous price-earnings ratio, and then it could repeat

1677-411: The umbrella of "collective obsessions". Collective obsessions have three main features in common. The first, and most obvious sign, is an increase in frequency and intensity of a specific belief or behavior. A fad's popularity increases quickly in frequency and intensity, whereas a trend grows more slowly. The second is that the behavior is seen as ridiculous, irrational, or evil to the people who are not

1720-425: The well-known conglomerates include Jardine Matheson (AD1824), Swire Group (AD1816), (British companies, one Scottish one English; companies that have a history of over 150 years and have business interests that span across four continents with a focus in Asia.) C K Hutchison Whampoa (now CK Hutchison Holdings ), Sino Group , (both Asian-owned companies specialize business such as real estate and hospitality with

1763-668: The whole process with a new target. In plain English, conglomerates were using rapid acquisitions to create the illusion of rapid growth. In 1968, the peak year of the conglomerate fad, U.S. corporations completed a record number of mergers: approximately 4,500. In that year, at least 26 of the country's 500 largest corporations were acquired, of which 12 had assets above $ 250 million. All this complex company reorganization had very real consequences for people who worked for companies that were either acquired by conglomerates or were seen as likely to be acquired by them. Acquisitions were

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1806-462: Was formed in 1981 from the merger of Fletcher Holdings , Challenge Corporation, and Tasman Pulp & Paper, in an attempt to create a New Zealand-based multi-national company. At the time, the newly merged company dealt in construction, building supplies, pulp and paper mills, forestry, and oil & gas. Following a series of bungled investments, the company demerged in the early 2000s to concentrate on building and construction. In Pakistan , some of

1849-487: Was on its way out. The stock market eventually figured out that the conglomerates' bloated and inefficient businesses were as cyclical as any others—indeed, it was that cyclical nature that had caused such businesses to be such undervalued acquisition targets in the first place —and their descent put "the lie to the claim that diversification allowed them to ride out a downturn." A major selloff of conglomerate shares ensued. To keep going, many conglomerates were forced to shed

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