1. 2. 3. 4. 5.

Never enter into business that has no competitive advantage More employees Divided into functional units not product division Responsibility but not authority for coordinating the active set of value Operating control system-focus more on how people behave than on short term financial outcomes they achieve +tech 6. Policy of lifetime employment 7. Never benchmark with competitors Tyco 1. Conglomerate very general resources even there is negative view of conglomerate 2. Powerful incentive to achieve extraordinary results .. sometime division head make many CEO 3. No meeting, no memos-less corporate staffs 4. Expert from other companies to evaluate the existing wide range of business (conglomerate)

Economies of scale