Cooper Case Essay

867 Words Oct 3rd, 2012 4 Pages
Cooper Case

1. What is Cooper’s corporate strategy? How does it create value? What are its key resources?
Response:

What is Cooper’s corporate 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.

Moreover, Cooper’s corporate strategy is diversification through acquisitions and mergers. This diversification is in both related and non-related
…show more content…
More fundamentally giving each division manager the responsibility of its divisions operations and not allowing it to interfere with other divisions.

Cooper empire added value to the corporation in a variety of ways:

Manage Cooper’s over all corporate portfolios
• Pursuing companies have stable earning or earning counter cyclical to oil and natural gas
• 30 years acquired more than 60 manufacturing companies
• Retain only best top leadership from the acquired business
• Centralized activities including managing inventories, sales, shipping, billing and headquarters.
• Over 30 divestitures in under 20 years in efforts to only keep business that would continue to add value
• Half of growth depends upon internal growth and other half from acquisitions
• Reviewed about 100 potential acquisitions annually.
• Division had a global responsibility for its operations.
• Close examination of business parts in order to place different products into a more well suited area of the corporation.
• Corporate management teams participate in every policy decision made in the organizations
• Internal audit staff and four person team of manufacturing cost systems experts available
• Labor relation, shareholders and public relations, environmental matters, legal affairs, administering personnel policy and benefits programs handle by one person.
• Strong union-avoidance policy
• Precisely

More about Cooper Case Essay