Concern is ...

The first concern allegedly appeared in Florence, and created it by K. Medici, in order to transport all kinds of goods along the Silk Road. But much later the growth of new subspecies of concentration of production entailed the further development of such enterprises.

The scientific and technological revolution, the aggravation of uneven economic development, as well as the fierce competitive war between the monopolies of the capitalist type, which occurred after the Second World War - under the influence of all these reasons the concern is beginning to acquire new features. Among them is the strengthening of interbranch factors, connected with certain conditions for the accumulation of capital. You can also note the growth of applied and scientific research, a sharp increase in the number of fairly large laboratories engaged in scientific activities, as well as experimental departments and workshops.

So, the concern is a monopolistic union, or rather, one of its forms or, if you will, subspecies. The concern can be characterized as the unity of property and control. The concern is characterized by a form of subordination to the financial magnates of a number of enterprises that make up its membership. Less often the managing body of the concern is a specially created link - a holding company that owns a controlling stake in various companies.

Explaining the question of what a concern is, we define it as several joint firms that have, in addition to common interests, control, contracts and production-technological relations, less susceptibility to diversification. And the difference between such an organization and a conglomerate is a more developed form of a general association of enterprises.

In practice, the concern is an association around a fairly large enterprise, which is often the parent or parent company. Such a parent enterprise is the holder of shares of all participants of the concern without exception. Concern, the definition of which is now increasingly densely part of the business sphere, can be positioned as a combined production system, striving to produce products. This product, in turn, should be competitive in the market of similar products. Concern is a certain machine, a system for the introduction of new technologies and technology, it is the personification of the concentration of the available scientific potential, resources and forces.

Each of the members of such a merger has the right to maintain economic independence, but none of the participants has the right to join other companies. A characteristic feature of such a joint venture can be considered the release and sale of the final product, as well as the provision of services with the process of reaching all parties at once.

Concern is a group of companies with a financial and industrial focus, mainly distributed in the territories of European countries, as well as the Baltic states. They can be subdivided into sectoral and interbranch. International concerns are often called transnational. For this case, the preservation of economic and legal independence of each of the participants is typical, but coordination is taken into account by the structures that are dominant. As a rule, the participants of the concern unite not only exclusively the economic potential , but also a number of the applied efforts of the market strategy.

Among the main advantages of such large-scale enterprises can be identified the concentration of financial and other resources. Modern concerns are largely due to the development of financial markets in the 1960s; For that time were characterized by constantly changing downturns and economic ups.