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Tyco Company

INTRODUCTION

The business environment of every firm is very crucial in business activities, this is because the can either give the business opportunity or threats. The business environment consists of the external environment and the internal environment. The internal environment consists of the workers and the resources within the firm whereas the external environment consists of the government, competitors and the legal issues.

TYCO MARKET ENVIRONMENT

The key of business

Tyco is a manufacturing company which was incorporated into business of as Tyco Laboratories in 1962 and today the firm has become a complex high technology manufacturing firm which hold key positions in the all its markets, Tyco grew through acquiring other bigger firms. In 1976 it acquired the Grinnell fire protection systems.

It has been Tyco’s objective to acquire profit making companies for the benefit of its shareholders and after 1973-1082 period of great growth it divided its self into three business segment; packaging, fire protection electronics.

The major objective of Tyco was to produce high quality products, dominate in the market and to reduce the cost of production in all its segments of the business.

To achieve these objectives, the company applied the tools below:

  • It reduced the managerial expenses of all the business segments by consolidating the all the overhead to be under the Tyco Corporate, this ensured these expenses were centrally controlled, these expenses included the taxes, legal expenses, the human resources and the insurance.
  • It decentralised all the company activities to ensure the costs were evenly reduced in all the business segments and hence creating a profit making centre of Tyco company
  • The company disposed all the business units which were not meeting the target profits and separate from companies which were not wholly owned by Tyco. This enabled the company to fully invest and concentrate on the firm’s goals and objectives to attain better results.
  • It ensured the business segments enjoyed the Tyco Corporate global image of economies of scale; this assisted mainly in controlling the business’ costs of purchasing the raw materials through deeds like inter-company procuring of unprocessed materials.

The firm, in1986 reorganised its businesses to the current four segments with the key objective to accelerate growth and adopted the name Tyco International limited. The company set guidelines on ways to acquire other firms, one of the major guiding principal was that the acquired firm must have some similarity with either of the business of Tyco in terms of production, distributing channels and must have stretched term growth forecast.

The key of government influences

The publication of the environmental health and safety (EHS) report by Tyco in 2005 has boosted the company’s operation in the market since it adheres to the global EHS policies. Tyco’s ADT security services helps in containing the medical cost for the employers and persons as well as the administration health insurers. The government has been very supportive to the firm and has always offered beneficial environment to the firms by offering favourable tax terms.

Legal influences

Tyco businesses have had several cases being investigated resulting from misappropriation of asset, among others, this is just a tip of iceberg since many fraud cases are yet to be discovered and made public.

 GRANT THORNTON COMPANY MARKET ENVIRONMENT

The key of business

Grant Thornton Company is an international private accounting and management consulting company which began its activities in 1986 after a merger between Alexander Grant & Co of Chicago and Thornton Baker of UK. The firm grew fast with the enabling conducive business environment and began offering computer consulting since this was a new growing market especially with the public fear of the Y2K computer crashes. The company has declined several approaches by leading firms like the PricewaterhouseCoopers.

The key of legal issues

One of the major reasons why the firms merged was because the legal environment was very harsh to the auditing firms and many of the directors had been accused of negligent and being corrupt leading to some workers being jailed, as a result, the Grant company was about to collapse due to the financial instability resulting from the heavy fine and loss if clients.

The key of government

Grant Thornton International Company grew fast but in 1990, there was recession in the US economy and this lead to many firms almost collapsing, this reduced in the mid 1990s and in 1997 the international barriers of trade reduced and the firm established branches in four major US cities.

The firms’ challenges came again in 2001 with the nation being faced with recession and the terrorist attack in September 11th coupled with earlier resignation of their CEO. This lead to the firm forming disaster recovery plans with other firms, this lead to Arthur Andersen accounting firm being convicted and Grant Thornton took some of its clients.

Since the public was losing its confidence with the auditing firms, grant Thornton international formed a five stage plan to restore the trust and urged other firms to embrace the plan and this worked well.

CONCLUSION

One of the key influences of the operations of Tyco and Grant Thornton Companies is the ability to adapt to the technological changes in the business environment. These changes include the changing consumer requirements, changes in the business models and changes in the business regulation modes.

Taxation is also another major issue affecting these companies. The tax fairness is a key challenge within these companies; this is because they have to be fair at the local and international scene. This has lead to these companies forming associations with other firms so that they can have one voice of strength of sending their message of fairness to congress, state and in the international arena concerning their tax fairness to the tax bodies. This has enabled the firms to have a strong ability to bargain and have fair and sustainable tax policies to the individual firms and the society at large.

The success of the two companies has been boosted by the efficient management which is highly qualified to meet the changes in the firms and the market.

REFERENCES

Need essay sample on "Tyco Company"? We will write a custom essay sample specifically for you for only $ 13.90/page

The history of Tyco Company, retrieved on 14th June 1007 available at http://www.tyco.com

The history of grant Thornton, retrieved on 14th June 2007 available at

http://www.grantthornton.com/portal/site/gtcom/menuitem

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