TYCO- Management Planning

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Tyco International is one of the largest conglomerates in the world, operating in all 50 states and in 60 foreign countries, employing over 250,000 people. It was founded in 1960 by Arthur J. Rosenberg as a research lab, and by September 1964 changed its focus to high tech materials and energy conservation for the commercial sector. In 1964 it went public, and in 1965 it acquired other companies shifting to manufacturing industrial products. (Tyco) During the period 1973-82, Tyco grew at an unbelievable rate as a result of an aggressive acquisition plan, steadily increasing its industrial base and profits with sales in excess of $500 million and a worth of $140 million. (Tyco) From 1982-86, Tyco focused on strengthening the company internally. This was achieved by decentralizing the company into three divisions, divesting unprofitable units, keeping only companies in which Tyco had complete control, reducing administrative costs, and encouraging subsidiaries to take advantage of Tyco’s global network to make purchases of raw materials. (Tyco) From 1986-2005, the company continued to grow by acquiring additional companies, reorganizing its base industries while expanding into new business enterprises such as healthcare and specialty products. The company established strategic acquisition and operational planning guidelines which established standards for potential acquisitions. Using strategic planning and stringent financial requirements to guide acquisitions, Tyco succeeded in becoming a market share leader. It remained committed to being a low-cost, high value producer and a first-class service provider. The management plan was to control costs to maximize revenues. Tyco attained their planning goals as they increased profits, enjoyed unprecedented growth, increased market shares, and was included in the Standard and Poor’s Index. In

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