1. What are the goals and objectives of Tyco? How well has the company performed? Show your analysis and interpretation.
Tyco was a holding company of the highest caliber (at the time of this case’s publishing), with a simple plan that was painstakingly engrained into the corporate culture. Everything about the company screamed Wall Street success, despite that one CII report to the contrary, and this success could be credited to the stubborn adherence to meeting 15% growth rates and various financial performance ratios.
2. What are the nature and characteristics of businesses/industries that they are in? What is the business selection strategy? What businesses are they entering or exiting? Are they related or unrelated?
Again, it must be stated that Tyco is the epitome of a holding company. This can be said with certainty since each division has a president who “functions as a CEO.” Whether it is fire protection or packaging materials, Tyco entered businesses that were unglamorous but provided an opportunity for profitability and growth. Before the creation of the medical products line, most businesses fit neatly into one of four areas. Since then, it seems like the company was more inclined to find any opportunity to grow, as long as it fit within the financials of the holding company.
And did they ever acquire businesses! Early on, in the days of Mr. Gaziano, Tyco earned a reputation as a corporate raider. Later on, under Fort and Koslowski, things operated under more diligent control. 3. What are the unique resources they have developed to create a competitive advantage? Are they general or specific?
The corporation seems to have created a few highly important resources in order to survive and succeed as a holding company. More than anything else, Tyco’s strong financial savvy in managing unrelated businesses is a general skill that few have ever mastered. Other areas where it has excelled are...