What is group of businesses?

A group of businesses refers to a collection of companies that operate under a shared parent company or umbrella organization. These businesses may be related to each other by industry, service offerings, or location.

Such groups of businesses may exist for a number of reasons, including to streamline operations, reduce costs through shared resources, diversify revenue streams, or expand into new markets. In some cases, the businesses within a group may have varying degrees of autonomy, while in others, they may operate as fully integrated entities.

Examples of group businesses include conglomerates like General Electric, which owns a diverse portfolio of companies in industries ranging from aviation to healthcare, and hotel chains like Marriott International, which operates dozens of different hotel brands under its umbrella.

Advantages of group businesses include economies of scale, better marketing and branding opportunities, as well as the ability to share knowledge and resources across different businesses. However, there may also be challenges such as conflicting goals and cultures within the group and difficulty in managing a large and diverse portfolio of businesses.