Thermo Electron - Question #3 John Garrity

The problems that occurred for Thermo Electron may be considered a downfall, but in comparison, shouldn’t degrade or invalidate the strategy that Mr. Hatsopoulos has created. Although rapid growth produced “premature” products per say and a complex corporate structure, the numbers say everything. Any large company are going to run into problems and downfalls in business, some more severe then others, but unless the numbers drastically change and the company’s success goes down the tube, the validity of the company shouldn’t be ruined by a few imperfections. Most of the problems due to the complex structure can be fixed or restructured with a little work. On the other hand, recalls and premature production needs to be relinquished because in the long run, there are no excuses for bad business. Bad business leads to more problems, and more problems pose a risk to the validity of the company.