General Electric and Tyco International are two conglomeratesÃÂ that use different business strategies that result in a difference of financial results. According to Encarta (2008), a conglomerate is described as a ÃÂcorporation consisting of several unrelated firms whose merger increases and diversifies company assets. Such a merger reduces a company's dependence on a single product or service in the marketplace.ÃÂ When a company is classified as being a conglomerate it usually means that they are very successful in running their business. General Electric has pursued a conservative growth strategy by focusing on being the number one or number two in each industry where it competes. Tyco has pursued very aggressive sales and earnings growth strategy through rapid, multiple acquisitions.
General ElectricFounded in 1892 in Fairfield, Connecticut, General Electric Company (GE) is a well diversified industrial corporation. Today, GE is ÃÂ11 technology, services and financial businesses with more than 300,000 employees in 160 countries around the worldÃÂ (General Electric [GE], 2007, para.
2). According to www.finance.yahoo.com, ÃÂGeneral Electric Company (GE) operates as a technology, media, and financial services company worldwideÃÂ General Electric (GE) produces products such as jet engines, replacement parts for military and commercial aircrafts, and generators. ÃÂIt also offers financial products and services for aviation and energy sectors, as well as engages in gathering, processing, transporting, and marketing natural gas and gas liquidsÃÂ(Yahoo Finance.2008). Since General Electric (GE) is so diversified it also deals with credit cards, mortgages, and loans, as well as manufacturing equipment for the medical field, such as X-ray imaging. Perhaps General Electric is best known for its home appliances that they manufacture as well.
Tyco InternationalTyco International Ltd. (TYC) was founded in 1960 in Pembroke, Bermuda. Tyco International Ltd. (TYC) conducts business in four segments. These segments consist of: electronics,