Tyco International Essay

Tyco International, headquartered in Bermuda, is a manufacturer of industrial products and provider of services to businesses and consumers. Tyco was founded in 1960 as a research laboratory to do work for the government. Tyco was incorporated in 1962 as Tyco Laboratories, and went public in 1964. Beginning in 1965, the company began to acquire other companies and between 1986 and 2005, the company grew rapidly through major acquisitions. The company’s name was changed to Tyco International Ltd. In 1993 to reflect its worldwide presence.

In July 2007, Tyco International divided itself into three independent public companies by spinning off its passive electronics components manufacturing (Tyco Electronics) and its healthcare unit (Covidien). Tyco International now focuses its business on providing fire and security services and engineered products. Tyco International has approximately 118,000 employees who work in more than 60 countries.

Tyco’s Business Segments

Tyco International is organized by five business segments: ADT Worldwide, Fire Protection Services, Safety Products, Flow Control, and Electrical and Metal Products.

ADT Worldwide provides electronic security monitoring services and devices to residential customers, commercial customers, industrial customers, and governmental customers. ADT employs 57,000 people, has 40 monitoring centers, and operates 500 offices in more than 50 countries around the world. Among its clients are eight of the top 10 global logistics companies, eight of the top 10 U.S. banks, and 80 of the world’s top 100 retailers. In addition to fire, health, and intrusion monitoring services, ADT services provide access control, video surveillance, radio frequency identification, and antitheft services.

Fire Protection Services provides fire detection, fire suppression, and special hazard services to commercial, industrial, and institutional clients. Its clients include hospitals, hotels, commercial ventures, petrochemical plants, schools and universities, government facilities, airports, and ships at sea.

Safety Products manufactures and sells products in three areas: electronic security, life safety, and fire suppression. It produces many of the devices used by Tyco’s ADT and Fire Protection units. Its security and surveillance products are in use at more than 300 airports. Its Scott brand breathing apparatuses are used by more than 15,000 fire departments. Its Ansul brand fire suppression products protect more than 75 percent of the top 100 oil and gas refineries. The Safety Products unit has 38 manufacturing facilities worldwide and serves customers in more than 100 countries.

Flow Control provides pipes, valves, valve automation, fittings, and heat tracing solutions to a variety of industries. Flow Control serves the food and beverage industry, the oil and gas industry, the power industry, the chemical industry, the water and wastewater industry, as well as process industries. Flow Control has more than 100 manufacturing and service locations in 24 countries serving its worldwide client base.

Electrical and Metal Products provides steel tubing and pipes, armored and coated wire and cable, metal framing products, and other metal products used in construction, mechanical, electrical, fire and security, and automotive applications. Electrical and Metal Products has 45 manufacturing and distribution facilities worldwide.

Company Goals

Management has a number of strategic goals for Tyco International. The company will expand through organic growth as well as through targeted acquisitions to broaden its range of products and services within the focus of its portfolio. The company will increase its presence in emerging markets, especially in India and China. For example, in April 2008, the company opened a research and development (R&D) center in China, its 15th worldwide, to better understand the local needs of its customers in China. The company will enhance its efficiency through its Operational Excellence initiatives. Tyco International also emphasizes its core values of integrity, excellence, teamwork, and accountability in its daily activities.

For 2007, Tyco International had revenues of $18.8 billion. Of those revenues, $8.9 billion were from the United States; $5.5 billion were from Europe, the Middle East, and Africa; $3 billion were from the AsiaPacific; and $1.4 billion were from the other Americas. Its diluted earnings per share from continuing operations before special items was $1.93. Strong first-quarter earnings in 2008 led to an upward revision of revenue growth from 8 to 12 percent. Revenue improved in all five business segments.



  1. Alfred D. Chandler and Bruce Mazlish, eds., Leviathans: Multinational Corporations and the New Global History (Cambridge University Press, 2005);
  2. Marc J. Epstein and Kirk O. Hanson, The Accountable Corporation (Praeger Publishers, 2006);
  3. Greg Farrell, Corporate Crooks: How Rogue Executives Ripped Off Americans—and Congress Helped Them Do It! (Prometheus Books, 2006);
  4. Stewart Hamilton and Alicia Micklethwait, Greed and Corporate Failure: The Lessons from Recent Disasters (Palgrave Macmillan, 2006);
  5. Scott Wooley, “The Conglomerator Wants a Little Respect,” Forbes (v.166/11, October 16, 2000).

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