Corporate Restructuring: The Case Of Tyco International Ltd
In today’s global economy competition is very stiff. In order for companies to maintain their competitive edge it is necessary for the organization to develop a strategic plan which enhances its core competencies and allows it to satisfy its customers’ needs with quality products and/or services that are presented in a timely manner at a low cost. By accomplishing these two goals a company is able to increase its value and its competitive position in the market place. Many of today’s organizations are finding it necessary to restructure in response to the intensification of global competition. Tyco International Ltd. (Tyco) is a diversified manufacturing and service company whose past strategic plan was growth and value creation through acquisitions. Although Tyco maintains its acquisition strategy, today, the company is focused on restructuring its organization and has shifted its strategy, somewhat, to one of “organic growth”.Tyco is the world’s largest producer of goods and services in the electrical and electronic components industries. It is also the largest designer, manufacturer, installer and service provider of undersea telecommunications systems, fire protection systems, electronic security services
Tyco Fire and Security Services is one of Tyco International’s major segments. This segment brings into the company annual revenues of $10 billion and employs over 95,000 people worldwide. Tyco Fire and Security Services\' companies design, manufacture, install, and service electronic security systems, fire protection, detection and suppression systems, and sprinklers and fire extinguishers, including more than 60 brands distributed in markets across the globe. Tyco fire and/or security products include fire detection and alarm systems; fire sprinkler systems; fire extinguishers and pumps; restaurant fire suppression systems; special hazard fire protection systems; integrated security applications that link access control, CCTV and fire; emergency lighting; healthcare communication systems; and integrated sound, intercom and telephone systems. (2) It must be able to expand the product line and/or improve product distribution for at least one of Tyco\'s business segments In 1960, Arthur J. Rosenberg founded the company, which was originally organized as a research laboratory that conducted experimental work for the government. He incorporated the business as Tyco Laboratories in 1962, and changed its focus to high-tech materials science and energy conversion products for the commercial sector. In 1964 Tyco went public and, today, the company employs more than 250,000 people, worldwide, within its four core business sectors. Each of Tyco’s core businesses is a competitive leader in its specific market: (1) electronics and telecommunications, (2) fire and security services, (3) healthcare and specialty products, and (4) engineered products and services.
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Approximate Word count = 1687
Approximate Pages = 7 (250 words per page double spaced)
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