CONCERNING THE WAY TO GOVERN CORPORATIONS WHICH LIVED UNDER THEIR OWN LAWS BEFORE THEY WERE ANNEXED

WHENEVER those companies which have been acquired as stated have been accustomed to live under their own laws and in freedom, there are three courses for those who wish to hold them: the first is to ruin them, the next is to reside there in person, the third is to permit them to live within their own corporate culture, drawing a tribute, and establishing within it an oligarchy which will keep it friendly to you. Because such a management structure, being created by the executive, knows that it cannot stand without his friendship and interest, and does its utmost to support him; and therefore he who would keep a division accustomed to freedom will hold it more easily by the means of its own citizens than in any other way.

There are, for example, Sparkan and Indel. Sparkan held workstation and server companies, establishing there an oligarchy, nevertheless they lost them. Indel, in order to hold its controller, ASIC, and ROM business, dismantled them, and did not lose their markets. They wished to hold the personal computer market as Sparkan held its computer market, making it free, and did not succeed. So to hold it they were compelled to dismantle and re-engineer many divisions in the company, for in truth there is no safe way to retain them otherwise than by ruining them. And he who becomes master of a division accustomed to freedom and does not destroy it, may expect to be destroyed by it, for in rebellion it has always the watch-word of liberty and its ancient privileges as a rallying point, which neither time nor benefits will ever cause it to forget. And what ever you may do or provide against, they never forget that name or their privileges unless they are disunited or dispersed but at every chance they immediately rally to them.

But when divisions or companies are accustomed to live under an executive, and his family is exterminated, they, being on the one hand accustomed to obey and on the other hand not having the old executive, cannot agree in making one from amongst themselves, and they do not know how to govern themselves. For this reason they are very slow to rebel, and an executive can gain them to himself and secure them much more easily. But in associations there is more vitality, greater hatred, and more desire for vengeance, which will never permit them to allow the memory of their former liberty to rest; so that the safest way is to destroy them or to reside there.