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- ADAM SMITH once said that “there is a great deal of ruin in a nation.” There is also a great deal of ruin in some kinds of business organisations. Management theorists have been predicting the death of conglomerates for decades. Stockmarkets apply a “conglomerate discount” to the price of their shares. Investors argue that it is better to bet on several focused companies than a single diversified one. Business writers routinely apply the adjectives “bloated” and “unwieldy” when mentioning conglomerates. And yet, almost everywhere, they continue to thrive.