Thursday, May 9, 2019
Strategic Management of Cooper Industries Case Study
strategical Management of Cooper Industries - Case Study ExampleIt is evidently clear from the discussion that Cooper Industries had eternally been aggressive in its variegation strategies as a means to add value to its manufacturing. While the degree from 1967- 1970 was marked by the acquisition of related industries, Cooper industries grew from diversification by acquiring unrelated industries in the year 1980. Cooper Industries considered notes of crisis as opportunities and thus followed three basic principles while deciding upon acquisitions the target phoner should be a securities industry leader, the target company should be stable and has a good market for its offerings, the acquisition should make Cooper Industries a market leader in the respective industry. In its diversification regime, Cooper Industries had suffered both profits and losses. For instance, the acquisitions of hand tools, Gardner-Denver and Crouse-Hinds supplied diversification revenues while Dresser a nd Carrier and Black and Decker resulted in loss conditions. Thus, deciding upon the acquisition of Cameron Iron Works and Champion Spark Plugs is a dicey situation for it where it has to analyze its strengths, weakness and other factors which can provide efficiency without raising the debt burden. Over a outcome of thirty years, Cooper Industries acquired almost 60 manufacturing companies to add on to its manufacturing expertise. This not only made it free of the external environmental pressures but also provided diversified revenue base where the sale of one component compensated for another during tough times. Its organizational strategy was also aligned to the business strategy where both single acquisition was first closely analyzed and then acquired. Its MD&P (Management Development & Planning) social class constantly worked on acquisitions to eliminate poor performing or redundant product lines and integrates the acquired business into its own. In these efforts, even rel ocation of acquired companies plants or reorganizing the staff made all the acquired companies its profit centers. In order to receive a better understanding of its internal and external environment, the SWOT analysis puts the light.