When administering composite companies, again weaken the stronger powers within each component and keep the weak powers weak. Don’t bring in outside help. This will only weaken your position. In other words, don’t acquire more than can be managed.

James Tucker – CEO of MercurEx, 25 RULES FOR THE MODERN UBERMAN

The Strategy of Weakening Strong Powers in Composite Companies

Companies can be divided into two main categories: composite companies and component companies. Composite companies are made up of separate business entities that are bought out and incorporated into a single conglomerate corporation. The challenge with managing a composite company is they have legacy loyalty and culture and political arrangments that can cause imbalances and disruptions within the company, and to the business, which can lead to vulnerabilities that could inflict long-term damage to you and your corporation.

New takeovers always cause problems for the uberman. Employees and shareholders are willing to change administration to improve their situation, but if the existing culture is antagonistic to yours they soon discover that things have gotten worse because a new administrator must damage and dismantle the previous administration. This will inevitably create enemies within the company because agents from the previous administration will plot to undermine you, depending on how misaligned the existing culture is with yours.

If takeover composite companies have similar politics and culture it is easy to keep most of the administration. As long as you do not change their way of life, you need only wipe out the old executive to keep them.

But if new acquisitions have a different culture or political customs, they are difficult to keep. They will bankrupt you. Go and work there yourself, to establish an executive, protect the allied minor powers, weaken strong factions within the business to the extent of eliminating and replacing the entire executive, and guard against external influences.

If the task is too great, do not bite off more than you can chew.

Simply stay away.

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