Organizing Paper

In this paper you are going to find out, how Tyco evaluate the organizing function of management in their organization as it relates to the Technology, and the Knowledge of the organizational resources. Whether, or not Tyco has optimized these organizational resources for effectiveness and efficiency.

Tyco was founded in 1960 when Arthur J. Rosenburg, Ph.D., opened a research laboratory to do 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 September 1964, the Company went public, and in 1965 it began to acquire other companies to fill gaps in its development and distribution network. As a result, Tyco's thrust changed to manufacturing industrial product.

Today, Tyco is a model of sophisticated and innovative manufacturing and service employing 250,000 employees worldwide. Each of Tyco's core businesses holds a leadership position in its specific market

1960

Tyco, Inc. is formed as an investment and holding company in Waltham, Massachusetts. The two primary holdings are Tyco Semiconductor and the Materials Research Laboratory, which studies materials and devices with applications in the fields of solid state sciences and energy conversion.

1962

The Materials Research Laboratory and Tyco Semiconductor are merged. The business is supported by U.S. government research contracts. But soon, management recognizes the commercial applications of its work and Tyco begins to search for acquisitions to develop product, manufacturing and marketing capabilities.

1964

Tyco becomes a publicly owned company.

1965

Mule Battery Products is Tyco's first acquisition. Tyco Inc. changes its name to Tyco Laboratories.

1968

By this time, Tyco has acquired sixteen companies, including North American Printed Circuits, one of six companies that would later form Tyco's Printed Circuit Group.

1973-1982: Growth through Acquisitions

In 1973, consolidated sales and stockholder equity reached $34 million and $15 million, respectively. The next year, Tyco's stock was listed on the New York Stock Exchange. By 1982, Tyco had become a much bigger and more diverse corporation with sales topping $500 million and a net worth of nearly $140 million. Much of this growth was achieved through larger and more ambitious acquisitions including:

• 1974: Simplex Technologies, manufacturers of undersea fiber optic telecommunications cable

• 1976: Grinnell Fire Protection Systems, manufacturers of and contractors for fire sprinkler systems

• 1979: Armin Plastics, manufacturers of polyethylene film products

• 1981: Ludlow Corporation, manufacturers of packaging products

1982-1986: Developing Market Leadership

it has always been Tyco's policy to acquire profitable companies and to operate them at continually increasing profitability for the benefit of its shareholders. For that reason, after Tyco's 1973-1982 period of rapid growth, management focused on strengthening the company from within. To do so, Tyco organized its subsidiaries into three business segments (Fire Protection, Electronics and Packaging), and created an operating plan that focused on strengthening market leadership and being the high-quality, low-cost producer within its markets. The plan's objectives were:

• To achieve significant market share in each of its principal product lines;

• Establishment of each product line as the leader and high-value producer in its field;

• To maintain, throughout all Tyco business segments and product lines, a reputation for product quality, reliability, and customer service.

Tyco accomplished this by:

• Decentralizing company operations into a more cost-effective, independent profit center operating system;

• Selling unprofitable