Parent Company Cash Extraction Kills

"The East Coast management of Fairchild Camera and Instruments, instead of feeding the business needs of the thriving semiconductor division and rewarding its employees with stock options, used the cash generated by its west coast semiconductor division to invest in sleepier and more traditional areas such as graphic arts, office equipment, home movie cameras, and printing presses. When business at Fairchild Semiconductor started to slow in the late 1960s, competitors picked off its key employees with option packages and an exodus began."

"As for the idea that manufacturing in Asia as a competitive advantage only became apparent in the late twentieth century, Fairchild Semiconductor began assembly operations in Hong Kong in 1963. Finally, and perhaps most importantly, if you ever wonder why large companies fail you have to look no further than Fairchild Semiconductor."