Cooper Industries Case

1577 Words May 1st, 2013 7 Pages
Managerial Policy | Cooper Industries Case | By: Aena Rizvi, Anum Rinch & Rafia Farooqui |

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Introduction:
In 1833, an iron foundry was founded by Charles and Elias Cooper in Mount Vernon, Ohio. Overtime, Cooper became the market leader in pipeline compression equipment. Cooper Industries was around 150 years old and was mostly involved in the manufacturing of engines and compressors to facilitate the flow of natural gas through pipelines. They began expanding it around 1960s and for that, more than 60 manufacturing companies were acquired in the following 30 years. This came to be known as the process of Cooperization and some re-known companies became a part of the Cooper banner to form a highly successful and
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They even made sure that they were deeply involved in all the acquisitions they made so that they do not end up making mistakes by acquiring a wrong company.
Cooper’s President, Gene Miller’s ideology was to not restrict operations to the production of engines only. This was reflected in the business decisions when Cooper began to diversify and widen its product ranges. Cooper’s acquisition strategies were well planned and they were not left to the professional managers on the grounds that they could do justice to any product categories or manufacturing processes. Great importance was given on understanding the culture and customs of the areas in which Cooper operated and diversification only took place when the prospects looked profitable. There was a limit to diversification and special attention was paid to the timing of acquisitions. Most of the companies that Cooper aimed at acquiring were market leaders who maintained records of high quality manufacturing. Cooper’s journey was not about acquisitions and additions only. After a business had served its useful purpose, it was divested because clinging to the past would only reduce chances of future success. Between 1970 and 1988, Cooper divested 33 businesses.
Cooper also ventured into the aircraft service business by purchasing Dallas Airmotive which was mainly involved in the repair and lease of jet engines as well as the distribution of aircraft parts and supplies. After this, Cooper

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