Cooper Case

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Economic Data
In the 1970’s, Sears was a major economic player in the tool industry. They were originally called Sears and Roebuck until the early 1970’s, but since then the Roebuck part of their name has been dropped. During the early 1970’s was when Sears began to develop more business in a retail setting, as they began expanding heavily into suburban shopping malls and doing less business through their mail-order catalog, which, historically, was what had made them a well known company. The major brand that Sears holds that could have competed with Cooper/Nicholson is the Craftsman brand, which was registered by Sears in 1927 and was recently names one of America’s most trusted brands.
From 1970-73, the US economy grew by an average
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In addition, the company’s stock price was also suppressed as the cyclicality of the market and sales defrayed interest in their stock. If Cooper decided not consider the acquisition, the company’s future profits could be in jeopardy as increasing gas prices and economic stress could potentially threaten their sales in the current market.
Taking into consideration the company’s requirements for acquisitions, Nicholson would most definitely add synergy as it met all of the requirements stated by management as well as possessed some additional strength that would add value to the company. As one of the largest domestic manufactures of hand tools and leader in its two main product areas, Nicholson would provide a wider range to Cooper’s current hand tools line. Cooper, currently a leader in heavy machinery would be able to add some stability and balance to the company by focusing more heavily on establishing a market presence and aggressively entering the small tool segment of the market, of which Nicholson is currently a leader. The acquisition of Nicholson would further highlight the intent of Cooper to aggressively market the smaller product industry as the previous acquisitions of other companies also focused on smaller product lines. In absence of the acquisition, Cooper may not be able to build a quality brand name in the small tool market. Further, the company’s intent to move into the small tool market may not be taken seriously by the investors

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