Thermo Electron- 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.