Corporate Level Strategy of Tyco International Name: Course: Tutor: Date: Corporate Level Strategy of Tyco International The business environment has become challenging because of the many issues affecting the competitiveness of firms in an industry. Many firms have engaged in many strategies in order to improve their competitiveness in the business environment by applying many strategies…
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government. After its incorporation, the firm involved itself with high-tech science materials and conversion of energy products for use in the commercial sector. Over time, Tyco International was involved with various corporate strategies such as mergers and acquisition to become a leading manufacturer of industrial products. Corporate Level Strategies According to Porter (2008), corporate strategy includes all strategies that an organization employs as it diversifies. The strategy involves the combination of enterprises that a firm should compete in integration and modes through which to subsidiaries are coordinated. The four common corporate strategies applied by many firms including Tyco International include the portfolio strategy, restructuring, skills transfer and activity sharing (Tyco, 2011). The portfolio strategy as applied in the context of Tyco international is the ability of the firm to choose the best strategy exploits the strengths of the organization with the ability to exploit existing opportunities. The aim is to maximize shareholder returns. The analysis of the existing business portfolio and making decisions on suitability of the firm in receiving any further investment is a major step that should be accompanied strategy evaluation. In order to achieve the intended strategy, various methods are used, two of which is the BCG matrix and the General electric/shell strategy. Through the application of these strategies, Tyco International has been able to diversify over time (Tyco, 2011). Tyco International was established as an experimental laboratory/organization conducting experiments for the government. However, over time, the firm was able to experience both internal and external growth with diversity in its operations in different fields with the latest being a split. Internal growth was experienced through increased revenue that was used to pursue external growth through mergers and acquisitions. For instance, mergers began as early as 1966 when the firm acquired Industrionics Control Inc. the 1970s saw the firm acquire Simplex and Grinnell. The firm continued its external expansion and ended acquiring more firms in the course of its growth (Porter, 2008). However, the firm realized it potential growth prospects and exploited the corporate strategy of split in 2006 where it was split into three independent companies that were Covidien Ltd, Tyco Electronics Ltd and Tyco International Ltd. Before splitting, Tyco International utilized the BCG strategy that could be used to establish the product portfolios of the firm as explained in the next section. While diversifying in international markets, Tyco International utilized strategies such as the export strategy, franchising and joint ventures and licensing among others. BCG Matrix as Applied to Tyco International The BCG matrix categorizes products of an organization based on the market share and the market growth rate. Based on these two axes, four quadrants are drawn representing stars, cash cows, dogs and cats. The matrix postulates that Stars represent products of the firm that depict high growth rates in the market such as healthcare products and services of Tyco International. Electronic products that have a large market share although they perform moderately in the market while question marks and dogs represent products of low market share operating in high growth markets and
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“Tyco International Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1434411-tyco-international.
Due diligence was conducted for three months which started around October of 1999. However, according to the details of the purchase agreement Shan was only permitted to conduct “reasonable non-intrusive environmental inspections, compliance audits and assessments.” The agreement further states that if Shan require a more comprehensive assessment and compliance audits Shan Industry has to rely on the auditors hired by Tyco International only.
The revenue and profit reports were inflated by some strategic accounting practices that falsified reports about the fiscal status of the company with the view of showing some kind of consistency in the company’s general performance. According to some analysts, the reports posted by the company would show significant variations if the accountants were to adopt conventional accounting practices.
When the management functions fail the organization collapses. Tyco collapsed due to poor management contributed by Kozlowski, the chief executive officer. Use of Transformation Skills Gerald and Teurf argued that dialogue and transformation go hand in hand.
The author of the study will try to conduct a situational analysis of Tyco International shower curtain incident. From this situational analysis, it is observed that the incident was committed due to the lack of guidance of ethical theories followed by the employees and the management in Tyco international.
Ethics is one of the essential requirements of any organization. It means to perform accurate things so as to maintain the morality, image, and value of the organization within the minds of the customers. This also helps in enhancing the reputation and reliability of the organization in the market among others.
The importance of planning can never be overstated. A person stated that failing to plan is the same as planning to fail which highlights the importance of having a set of objectives and mechanisms to achieve them. Without a specific plan, a business organization is expected to fail noting that its specific decision is not geared toward pursuing a common goal.
The author explains that given the power of the top management, junior managers and officers in the firm were compromised and could not execute their internal control duties effectively. Working under pressure from the top management (fraudsters), they provided a poor financial management oversight to the entire company.
During his reign as CEO, he encountered a lot of agency conflict between him and the shareholders of Tyco international. This was due to the following reasons. Firstly, he stole $244 million from the company by
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