Question: Company history Myriad plc was founded in 1962 and its original business was as a manufacturer of metal castings. It became a listed company in 1977. Myriad plc has always traded profitably, but by 1987 the directors had become very concerned about the volatility of its earnings. Consequently, they commissioned a review from a firm of consultants which specialised in advising on corporate strategy. Following this review, Myriad plc announced that it would ‘aggressively pursue a policy of conglomerate diversification, by external acquisition, to promote growth and reduce risk'. By 1993 Myriad plc achieved the following structure: a group headquarters based in London and three divisions: Leisure, based in Oxford, Light Engineering in Coventry and Office Equipment in Birmingham. Each division has its own executive management team which has responsibility for earning a criterion rate of return on the funds invested in it by the group. Group headquarters has the responsibility for raising capital and operates a group treasury function. The group headquarters has a staff of 25 which includes the main board of directors. The costs of running the group are charged out to the divisions by means of a management charge.