Cooper Industries’ Corporate Strategy Case Analysis Company Vision The vision of Cooper Industries‚ as stated in the case‚ was to do an ‘outstanding job at the unglamorous part by making necessary products of exceptional quality.’ The goal was to operate in industries that had become somewhat of a necessity for consumers. Examples of such industries include: power transmission‚ hand tools‚ drilling and others. Cooper industries had started in 1833‚ as an iron foundry‚ and had existed most of
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Group Case Analysis: Cooper Industries‚ Inc. MBAD 6235 Section 11 December 3‚ 2014 Elisabeth Goodson‚ Lynette Hammond‚ Wanting Hou‚ Sam Inman‚ Qian Jin‚ Weisi Sun‚ Shumin Xu‚ and Yuru Zhang I. Summary of the Problem Cooper Industries was founded in 1919 as an equipment and heavy machinery manufacturer. Over time‚ Cooper Industries experienced significant growth through acquisitions. Nicholson File Company had been on Cooper’s shopping list for years as a company to acquire. What made
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HOW ATTRACTIVE IS THE INDUSTRY ? An attractive industry with a high average return on investment will be difficult to enter because entry barriers are high‚ suppliers and buyers have only modest bargaining power‚ substitute products or services are few‚ and the rivalry among competitors is stable. An unattractive industry like steel will have structural flaws‚ including a plethora of substitute materials‚ powerful and price-sensitive buyers‚ and excessive rivalry caused by high fixed costs and a
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• Coopers strategy: Cooper Industries is a broad company that uses the M&A strategy of diversification by acquiring companies that posses their own strong assets and exhibit stable earnings. As stated by the Corporate Role the company’s acquisitions had guidelines of companies that served a broad customer base‚ had stable earning and proven manufacturing operations using well-known technologies and had brand name product from market leaders. • How does it create value: As stated by Cooper
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Case Analysis Cooper Industries Cooper Industries was organized in 1919 as a manufacturer of heavy machinery and equipment. By the mid-1950s it was a leading producer of engines and massive compressors used to force naturalgas through pipelines and oil out of wells. Management was concerned‚ however‚ over its heavy dependence on sales to the oil and gas industries and the violent fluctuation of earnings caused bythe cyclical nature of heavy machinery and equipment sales. Although the company’s
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COOPER CASE STUDY SUMMARY Nicholson Early in 1972 Nicholson dad to fend off a take over attempt by H.K. Porter Company Inc.‚ which controlled 30.5% of the company ’s stock. Porter made a cash tender offer to stockholders. However‚ Porter did not get enough stock to take over Nicholson. In trying to fight the takeover Nicholson made several merger overtures to other companies like VLN Corp. A few years back‚ it had rejected an offer from Cooper Industries. Cooper Industries & Nicholson Cooper
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Cooper Industries’ is truly in the business of value-added manufacturing. From its criteria used to select acquisitions to its organizational structure‚ Cooper Industries is constantly trying to uncover opportunities to acquire and divest companies in the pursuit of increasing economies of scope and profitability. Acquisition Guidelines for Diversification Cooper has specific‚ detailed guidelines for its diversification approach. It will only acquire firms that will fit easily into their
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1. If you were Mr. Cizik of Cooper Industries‚ would you try to acquire Nicholson File Company in May 1972? Why? If I were Mr. Cizik of Cooper Industries‚ my decision would be trying to acquire Nicholson File Company. Why? For 3 reasons: 1. Nicholson File Company is a company that is financially healthy. With increase in sales in the last 5 years. Today is a very liquid company. Their liabilities are very well controlled. Opportunity cost reduction due to the merger and thus increases margins
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Introduction Cooper Industries‚ Inc. is a manufacturer of heavy machinery and equipment. It has acquired some companies in the past as part of their expansion plans. Cooper acquires companies that are leading in their area of business‚ have a large market share and is the leading company in their area of operation. Currently‚ Cooper is focusing on building a hand tool business with a full product line that would use a common sales and distribution system and joint advertising. In this effort‚ Cooper has already
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What are the concerns and what are the bargaining positions of each group of Nicholson stockholders? What must Cooper offer each group in order to acquire its shares? Introduction : Nicholson File Company was faced with poor sales and low profit performances conservative accounting policies and a very low percent of outstanding stick which was held by the Nicholson family. the management was also functioning badly .The family had no interest in joining forces with people from outside and the
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