Strategic Management Case Solution on Tyco International


Strategic Management Case Solution: Tyco International


Q1. What kind of corporate-level strategy is Tyco pursuing? What is Tyco’s multi-business model and in what ways could it create value?

The Tyco Pursuing the Unrelated diversification of corporate level strategy. Unrelated diversification refers to a firm entering a different business that has little horizontal interaction with other businesses of a firm. According this terms The case of Tyco is totally matched.  So we are strongly said that since this company establish new  form of business which are not involved or matched with other business operational activities.


Q2. What are the dangers and disadvantages of this business model?

There are so many advantages and disadvantages of Business model.

Now in Below I mention what are the benefits we get from this.

1) Gives direction

2) Imagine new realities and  not  remain content with past success or becoming past failures.

3) It ensure vision Ans this generates motivation.

4) It helps to find to lead others and manage resources

5) It gets others on board and contributing

6) It helps to get focused on implementation and measurements

Now in below I specified the major disadvantages of this model

1) Reduce quality

2)Too complicated

3)Indexing

4) Market risk

5) Below average returns

6) Bad investments


Q3. Collect some recent information on Tyco from source like Yahoo! Finance. How successful has it been pursuing its strategy?

               

In an effort to enhance consumer awareness and revive corporate image, in June 2004, Tyco launched a new global print-advertising campaign, "Tyco a vital part of your world." Tyco also began a divestiture program following a review of its core businesses. Part of the plan was to sell TGN, which by then had been entirely written off in value. Agreement for the sale was reached in November.[citation needed]


In the second quarter of 2004, ADT Security sold off Sonitrol.[citation needed] In all, within its divestiture program, by fiscal year end of 2004, Tyco had divested 21 businesses and liquidated four non-core businesses, primarily within the Fire and Security segment.[citation needed]In September 2004, Tyco also divested Electrical Contracting Services from the electronics segment, due to a decrease in sales. After September 30, Tyco divested an additional seven non-core businesses, bringing the program aggregate proceeds up to $500 million that year.[citation needed]


By the end of 2004, Tyco employed under 260,000 people, with two-thirds outside the United States. Revenue was up strongly, to over $40 billion for the first time. Once again the strengthening euro against the dollar helped Tyco, accounting primarily for $1.5 billion of the increase in revenue. Various charges, losses, and debt repayment totaled nearly $1 billion in 2004, however, profitability tripled that year to almost $3 billion.


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