This trouble was caused because they decided to incorporate both ABC and XYZ. Their main reason for this was because they were receiving a surplus valuation of $3,000. with this they could acquire more which in return help increase their surplus. in 1960 investors had lost faith in conglomerates which resulted in conglomerate to end for a while. But by the time that they ended their ideas had spread causing it to survive. According to Dugger the famous Boston Consulting Group had helped in making Conglomerate more stable which in the end they ended up in using one of conglomerate characterizes of working in different market. What this means is that they could punish their competitors and control the market. Dugger states “An enterprise that operates in several markets can cut its price in one market to discipline a competitor and then easily recoup its losses in its other markets” (Dugger, 1985) this meant that these corporations operate in different market which in a way gives them power to control not just their markets but also their competitors. They had created a long-term planning called Product portfolio management where their main goal was “the objective is to maximize the conglomerates long run growth, without using outside financing, by appropriately managing the conglomerate's subsidiaries, each of which sell a different product or set of …show more content…
We the people had slowly handed over the economic power to corporations without even knowing. Through these changes we had missed the fact that in 1965 50 percent of these U.S corporation had assets that were about $250 million and by 1980 it had gone up to 70 percent. This is something very alarming which people or even the government should have been able to dictate. William Dugger argues that we as American have allowed our self to fall into a new era that do not want to be in without even noting it which I agree with. In a way I could agree with William Dugger that we should blame the government but blame the corruptions for our bad economy but after analyzing Duggers article I would say that the government in a way is to blame but its not their fault that the economy is bad today but I would say that they are at fault for letting these conglomerate corporations to have so much power that they were able to create their own culture and were able to create their own capital market. According to William Dugger we must be able to point out these issues before they get out of hand because now the powers that these corporations have are not even seen as power but rather we see this new power that they have used to usher us into a new era and now we and especially they youth are seeing this new era as something good, Dugger states “We have allowed a Frankenstein monster to be put together and made