The Shareholders Interest And Bargaining Power

1665 WordsMar 24, 20167 Pages
1. If you were Mr. Cizik of Cooper Industries, would you try to gain control of Nicholson File Co in May 1972? In consideration of the shareholders interest and bargaining power, it is in the best interest of Cooper Industries for Mr. Cizik to take on the beneficial course of action and try and gain control of Nicholson File Company. The driving force of this decision, which benefits the shareholders, is the potential for increased value and performance of both companies providing new and improved brand recognition, great financial benefit while reducing earnings volatility. This platform works well with the framework of Cooper as a Cooper is well positioned to grow with Nicholson and allow an increase of market share. The focus on expansion of Cooper’s product portfolio into electrical power equipment provides diversification, competitive advantage and leverage. Changing times call for changing action and this can result in smoother transitions into new market trends that are key to increasing profits and the economies of scale year over year with appropriate strategy in such a broad market. This cross-selling of products within their portfolios offers an extensive potential for long-term exposure to new markets and consumers which will equate to continual long term growth. In addition, the reduction of expenditures such as cost of goods sold, are achievable due to the elimination of repetitive advertising and sales practices. Cooper’s reduction of risk exposure to their

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