Business integration is strategic management- stakeholders and shareholders stock markets apply a conglomerate discount of 20% on unrelated Diversified firms ,this means that the investors understand it Financial efficacies of this strategy automatically make the stocks worth 20% more than their current market valuation believed that value of conglomerate is 20% less than the value of the sum of their parts discount the expected future earnings of conglomerate by 20% have found that overtime conglomerate are in 20% more than component companies would have earned independently