Fable: The Failure Of Rationalisation

There was once a massive industrial conglomerate involved in everything from automobiles to aerospace which, one day, woke up to the fact that it owned half a dozen different semiconductor companies.

Wouldn’t it be a great idea, thought some bright spark manager, if we amalgamated all these operations into one big company?

 

To big company people, the idea of one big company was preferable to the idea of a lot of small companies.

 

But the amalgamation was, of course, contrary to the dynamics of the semiconductor industry which favours small, entrepreneurial, fast-moving units.

 

The big company went ahead with the amalgamation and proudly presented to the world a new top ten semiconductor company with over $1 billion of sales.

 

It all fell apart quite quickly.

 

Moral: The same rules don’t apply to everyone.

Tags: semiconductor company

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5 Comments

  1. David Manners
    March 05, 2013 13:24

    Gosh Yes don’t I remember it [Anonymous] – Helicopters, Chateaux on the Loire, fancy restaurants, luxury train carriages, lavish prezzies – I’ve never seen anything quite like it. I suppose it was the Daimler Benz corporate mentality rather than a semiconductor mentality – with the exception, naturally, of a Jerry Sanders extravaganza.

  2. Anonymous
    March 05, 2013 12:16

    Yes, the Temic management knew how to spend money big time! It was a shock for them once Atmel acquired them. So sad that the German/Franco management could only travel business class instead of First or Private jet!

  3. Dr Bob
    March 01, 2013 15:42

    Alles nicht in Ordnung

  4. David Manners
    March 01, 2013 14:39

    That was Daimler-Benz, Scunnerous, with its ill-fated concoction of Temic

  5. Scunnerous
    March 01, 2013 02:05

    Since I haven’t resorted to Google, or DuckDuckGo, to sort it out, I have to have two guesses here: Mitsubishi or Hyundai?

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