Monday, November 26, 2007
Question # 3 Danny Santana
The Thermo Electron strategy holds major drawbacks that beed to be assessed. When the company expaneded the parent company was losing track of the subsidiaries that were tangent with the company because there were too many subsidiaries. Rather then holding out and not going public most of the subsidiaries went public too early in the begining. This created more work for the parent company to keep up with overall. Thermo Electron could have used the strategy more efficiently if they would have invested time and thought in each of their companies. Because they did not do this it was hard to throw these the subsidiaries in the market and make them efficient on there own.
Subscribe to:
Post Comments (Atom)
1 comment:
Question #2 Chad Schrepper
Although the success of Thermo Electron's diversfied strategy there are many drawbacks that they have encoutered as well. The complex strategy has a negative effect on share price, investors also complain that the strategy is to complicated. Having twenty-three subsidaries also means producing twenty-three annual reports and nintey-two quarterly reports, which has turned out to be a very costly process. Also having so many companies it spreads thier management and engineering talen very thin. Aurguably the biggest drawback is that if one of the subsidaries is not doing well, it effects the the whole company.
Post a Comment