Cooper Industries' Corporate Strategy

Home Depot’s corporate-level strategy is one of internal growth. This conclusion was reached based on the increased focus that Home Depot has placed on growing its existing online and traditional retail operations. Between 2016 and 2018, Home Depot is expected to invest approximately four billion dollars into improvements in its online and physical retail locations in order to make both work more synergistically and grow sales (Petro, 2016). Home Depot hopes that these investments will continue to increase sales at both its physical and digital retail locations, thereby growing the company without adding significant numbers of physical locations.

Growing through integration can have a positive effect on the competitiveness of a business in that firms are able to buy out or merge with other large powers in the market to make a ‘super power’ in the market. This ‘super power’ gains a larger % of the market as the two original

In this chapter, we first provide coverage of expansion through corporate takeovers and an overview of the consolidation process. Then we present the acquisition method of accounting for business combinations followed by limited coverage of the purchase method and pooling of interests provided in a separate sections.

Becoming a larger more efficient company with a strengthening competitive position opens up the opportunity for more mergers and acquisitions of competitors, suppliers and/or customers.

One of the most common arguments for mergers and acquisitions is the belief that "synergies" exist, allowing the two companies to work more efficiently together than either would separately. Such synergies may result from the firms' combined ability to exploit economies of scale, eliminate duplicated functions, share managerial expertise, and raise larger amounts of capital. These distinguishing features had made Nicholas Anaptyxi,CEO of Paragon to battle it out with his colleagues to acquire MonitoRobotics.The case study portrays Nicholas as a visionary and a hard-driving builder who belonged to the same thought of train as his father. They both believed that to get better they had to grow bigger. He had worked in

Merger motives that are questionable on economic grounds are diversification, purchase of assets below replacement cost, and control. Managers often state that diversification helps to stabilize a firm's earnings and reduces total risk, hence benefits shareholders. Stabilization of earnings is certainly beneficial to a firm's employees, suppliers, customers, and managers. However, if a stock investor is concerned about earnings variability, he or she can diversify more easily than the firm can. Why should Firm A and Firm B merge to stabilize earnings when stockholders can merely purchase both stocks and accomplish the same thing? Further, we know that well-diversified shareholders are more concerned with a stock's market risk than with its total risk, and higher earnings instability does not necessarily translate into higher market risk.

The Dyna Corporation, also known as Dynacorp, is a major global information systems and communications company. It had reached its peak in 1980s, known for its technological innovation.Its high quality products were well in demand in the market. The popularity had made them be the leader in the industry. However, with the rapid development of science and technology, Dynacorp gradually lost its leader position among the competitors in 1990s due to the slow growth rate. There are several challenges that they are facing,high costs, too slow to get new products to the market and not enough of value created for customers. In order to address to reasons behind the challenges, a series of investigations were carried out among not only the employees but also the company competitors. After the thorough inquiries,the serious shortcomings of the organisation structure have been identified.

Costco is one of the nation’s top three retailers and the world’s largest membership warehouse chain, Costco wholesale Canada operates about 80 membership warehouse clubs across Canada. The company never advertises, charges its 64 million members to shop there and doesn’t mark up any product more than 15 percent, even at this lowest profit margin, 15% for Kirkland private brand, the products were 20% lower than comparable to other brand products. Costco works with this business model and generating $93 billion in annual sales.

Later Rayovac Company’s (spectrum) diversification into other four industries could have been lead by the attractiveness these companies as seen in the attachments (attachment A), the first acquisitions of Remington Products Company and United Industries Corporation had very good scores on the basis of attractiveness weighted score at 7.70 and 7.1 respectively which analyst would say was way above the averages. The other two acquisitions which had an almost related

After acquiring, Newell would get the service level of each business to their standards as fast as possible to make sure that these businesses do not damage its reputation. Thus association of brand name to Newell highly enhanced the individual companies inside Newell’s portfolio to be of good service and fast distribution. Other than these factors, the acquisition of different companies might bring in different skills and synergies to complementing goods such as production knowledge and complementary assets. Companies that produce complementary products are able to know what exactly to produce that would suit their customers, while companies producing differentiated products of the same category would be able to learn from each other to produce better products for each customer segment. Companies of similar nature are also consolidated and the plants upgraded to increase manufacturing efficiency which will benefit these companies in the cost aspect.

After several failed attempt of internal diversification, they realized the lack of knowledge of their management about businesses outside the automotive area. so acquisition brought them quick fix where it brought already knowledgeable people in respective areas in their payroll.

Moreover, Cooper’s corporate strategy is diversification through acquisitions and mergers. This diversification is in both related and non-related

In order to achieve its goals clear guidelines were set that specified the degree and timing of acquisitions – focusing only on companies that exhibited stable earnings or earnings countercyclical to the gas transmission industry. Cooper focused on acquisition targets that possessed strong assets with high quality manufacturing and market-leading positions. Cooper continued to refine this acquisition model seeking companies with stable earnings using well-known technologies that served a broad customer base. Furthermore, Cooper focused on firms with high quality products and recognized brand names.

Cooper’s corporate strategy is diversification through acquisitions and mergers. This diversification is in both related and non-related businesses to lessen its dependence on the capital expenditures of the natural gas industry. Cooper’s started acquiring low-technology manufacturing companies. The companies were premium-quality products with strong brands names mainly still own by the original family owners that have seen

Doing these acquisitions at some certain stages were important to diversify GE technologies and maximize its market share (Immelt, 2005), however, the balancing between growing organically by empowering the company from within and acquiring some companies is even more important for setting up the company directions. Since more than half of the company revenue is derived from its financial services (Company Data 2008), this brings the argument onto the table about the nature of the company making it a financial company with a manufacturing arm.