...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 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 better days. Once Cooper’s acquired the companies they would update the processes and equipment and consolidate the plants. In a few cases, moved entire manufacturing plants to new plants in the southern part of the country to break away from practices of 20 years ago. They called this the “Cooperization” process which is one where they create lean independent business. The “Cooperization,” process included plans for divisional managers to seek out complementary acquisitions...
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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 of about 3.8% per year, and an average of 2.7% per year from 1974 onward. The 1970’s saw the rise in a term called “Stagflation”, meaning that the economy was growing slower than expected (stagnant), and inflation was happening to prices. It is believed that the inflation was the caused by the Vietnam War and President Lyndon Johnsons “Great Society” Programs. Those programs were a series of increases in government spending aimed at improving education, medical care, and transportation, all while helping to eliminate problems in urban centers. Unemployment was high back in the 1970’s, due to the large number of women who were attempting to enter the workforce, combined with the fact that there were very few jobs available. Additionally, major...
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...One of the critical problems confronting management and the board of Pioneer Petroleum Corporation in July 1991 was the determination of a minimum acceptable rate of return on new capital investments. The company's basic capital budgeting approach was to accept all proposed investments with a positive net present value when discounted at the appropriate cost of capital. At issue was how the appropriate discount rate would be determined. The company was weighing two alternative approaches for determining a minimum rate of return: (1) a single cutoff rate based on the company's overall weighted average cost of capital, and (2) a system of multiple cutoff rates that reflected the risk-profit characteristics of the several businesses or economic sectors in which the company's subsidiaries operated. The issue had assumed increased importance because of management's decision to extend the use of the cutoff rate to the evaluation of existing operations and investments. It was planned to evaluate divisional managers on the basis of their net profits after the deduction of a charge for capital employed by the division. Pioneer Petroleum had been formed in 1924 through the merger of several for merely independent firms operating in the oil refining, pipeline transportation, and industrial chemicals fields. Over the next 60 years, the company integrated vertically into exploration and production of crude oil and marketing refined petroleum products, and horizontally into plastics,...
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...On 1/13/2015 client Fatima Cooper came to the SSO to meet with CM Wattersoon for an ILP. HS De La Torre asked client if she is able to stay for extra 30 minutes to develop a Housing Plan to discuss further details about family’s plan to move into permanent housing. Client agreed and stayed for the Housing Plan. Ms. Cooper informed HS that family last permanent address was located at 272 East 163 Street Bronx, NY from 12/09 to 5/13. Family was evicted from the apartment. Family is currently residing at 220 East 197 St. Bronx, NY Unit . Family composition is Fatima Cooper (self 29y); Anthony Frederich (husband 36y); Christopher Cooper (son 10y); Anthony Frederich (son 6y) Callonia Frederich (daughter 1y). Ms. Cooper stated that no one is moving with...
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...Green Meadows Hospital is newly constructed community hospital owned by Southern Hospitals Corporation. Kate Cooper was very excited when she got a new position at Green Meadows as a Manager of Adult Services. They started hiring people and were getting ready to open the hospital. However, things did not go well as they planned and wanted to. Therefore, Kate had to resign. The biggest problem that I see in this was their unorganized management skills and communications skills. They should have more prepared since they were new hospital and related to people’s lives but from the beginning, it seemed like they did not think that it was a big of deal and just went it the flow. Communications at Green Meadows Hospital is more likely one way communication. It started out with 2 way communication model somehow, but it ended up having just one way communication model. At first, Alan seemed like he understood Kate’s situation and encouraged her with her getting higher education and seemed like he was going to be a strong supporter. However, it didn’t really work out. It was always him giving her too much work when even she told him that she does not think that she can handle all the responsibilities and works due to her duties and school. Also, There were never really clear communication or/and understanding among Doug, Alan, and Kate. 2 way communication model would have fixed their problems. Even though one way communication is a lot easier and faster, using 2 way communication...
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...Cooper Industries Inc. Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor's offer and Cooper financial data was decided. The remainder of this paper will provide the analysis and rationale for this determination. Should Cooper Industries Acquire Nicholson File Company? Cooper Industries has been expanding through diversification since 1996. Cooper's requirements to acquire a company has three major components. The target company must be: 1. In an industry in which Cooper could become a major player 2. In an industry that is fairly stable, with a broad market for the products and a product line of small ticket' items; and 3. A leader in its market segment. When looking at the criteria that Cizik's company (Cooper Industries), set forth relative to acquisitions, the acquisition of Nicholson meets all three objectives plus has significant potential short and long-term potential. Cooper management feels that by eliminating redundancy and streamlining Nicholson's operations this potential can be realized. Currently, Nicholson's financial history boasts a 2% increase in profit...
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...actor who posts negative information about that person on a risqué website, who attempts to cause that person severe distress with the negative information that she posts, and whose actions result in a level of distress that requires that the person receives treatment under a doctor’s care. Brief Answer Yes. Bert Cooper probably has a cause of action for intentional infliction of emotional distress against Ellie Saxon. A plaintiff in an intentional infliction of emotional distress case must prove that the conduct of the defendant was extreme and outrageous, that the defendant’s actions were intended to cause...
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...Memorandum To: Cooper-Pearson From: Consultant Date: 14 September 2012 Subject: case study I have been asked to research different medical insurance plans to assist Cooper-Pearson in selecting an insurance program for their marketing company. My goal is to provide them with enough details to make an informed decision on the different managed care plans. This information will allow them to provide their employees with a compensation package that is both affordable and desirable. Once an attractive compensation plan is in place; we expect the retention rate to improve and the recruitment of quality employees to increase. The primary differences between the HMO plan and the PPO plan is that you are required to have a primary care physician within the primary care network that you are assigned to. You don't have the option of visiting a physician outside of the network. You must have a referral from your physician to see a medical specialist and the specialist must be within the approved network. HMO plans normally cost less than a PPO but you may have a higher co-payment with a HMO plan. The PPO provides more information to the insured concerning cost sharing in or out of the network (Kongstvedt, 2007, p 25). According to (“benefithouse.com”, 2011), an indemnity plan allows you to use a medical provider of your choice to receive medical care. You must pay an annual deductible for the coverage before the insurance repayment takes effect. Once the deductible is paid then...
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...M&A, BARUCH COLLEGE, FALL 2012 Prof Harvey Poniachek Questions for Cooper Industries Harvard Case Study THE CASE SHOULD BE DONE BY TEAMS OF UP TO FOUR STUDENTS. The CASE WOULD BE PRESENTED AND DEFENDED IN CLASS BY TWO TEAMS. I EXPECT MANY OF YOU TO MAKE CLASS PRESENTATIONS BY UTILIZING POWERPOINT AND/OR OTHER MEANS. THE QUESTIONS BELOW WERE SUGGESETD BY THE AUTHORS OF THE CASE AND ADDRESS THE MAIN THE ISSUES, BUT YOU MAY EDIT / CONSOLIDATE THEM IF YOU FIND IT NECESSARY / CONVENIENT IN WRITING UP YOUR CASE. Cooper industries 1. If you were Mr. Cizik of Cooper Industries, would you try to gain control of Nicholson File Co in May 1972? ➢ yes o potential profit o COG from 69% to 65% o Saling expense from 22% to 19% o Leveraging European distributed system o Take benefits of the conflicts between VLN and Porter 2. What is the maximum price that Cooper can afford to pay for Nicholson and still keep the acquisition attractive from the standpoint of Cooper? As given in the case, Cooper Industries will get several synergies after the merger. 1) Cost of Goods sold of Nicholson could be reduced from 69% to 65%. 2) Elimination of the sales and advertising duplications would lower selling, general and administrative expense from 22% to 19% 3) Cooper will gain access to Nicholson’s strong European distribution system to sell its other hand tool lines. Based on the above factors, we prepared the pro forma statement...
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...Budgie Crashes, Dudley is a Dud In the spring of 1995, shortly before the close of Happiness Express’s 1995 fiscal year, a Wall Street investment firm projected a “precipitous” drop in the company’s earnings during fiscal 1996. The firm predicted that declining interest in the Mighty Morphin Power Rangers television program would quickly translate into falling sales of licensed merchandise featuring those characters, Joseph Sutton responded to that grim prediction by referring to another earnings forecast for Happiness Express released at approximately the same time by Donaldson, Lufkin & Jenrette (DLJ), a major investment banking firm. This latter forecast a sizeable increase in revenues and profits for Happiness Express during fiscal 1996. To support this second forecast, Sutton revealed that his firm’s backlog of toy orders in the spring of 1995 was nearly three times larger than the company’s backlog 12 month earlier. While admitting that sales of Power Rangers merchandise would likely decline in fiscal 1996, Sutton insisted that the company’s new product would more than make up for those lost sales. Bolstering Sutton’s point of view regarding his company’s future were the record operating results that Happiness Express reported in the late spring for fiscal 1995 of $7.5million was nearly double the figure reported the previous year, while its 1995 revenues rose to $60million, a 50% increase over the previous 12 months. Approximately one-half of the latter increase...
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...Re: Cooper Industries’ Corporate Strategy (A) Diagnosis: Cooper Industries’ growth depends on its widely diversification. From 1960 to the following 30 years, the company purchased about 60 manufacturing companies that increased the size and scope of Cooper Industries. With its experience and strength in “Cooperization”, it has been able to digest the companies it purchased and welded the company into a highly efficient, profitable, competitive business. But they acquired too much debt due to it diversified its business too quickly. It leads whether or not acquires Champion and Cameron Iron Works became to the biggest problem when the case was written, which would raise the debt-to-capital ratio to 55% to 60%. If they leave the problem unaddressed, they might risk bankruptcy in the future. Analysis: Both of Champion and Cameron Iron Works were in related industries, automotive and petroleum equipment, which were profitable businesses. Cooper Industries was already doing those two businesses. For the opportunities identified in the case have to do with the purchase of Champion and Cameron Iron Works, both of them have a strategic fit with Cooper Industries’ long-term plans. For example, Champion has a poor management, old technology, and failures at diversification. But Cooper Industries is good at this field. Cameron Iron Works had a biggest Compression and Energy Business Segment until 1981. But it was the smallest segment of Cooper Industries. Moreover, Cameron Iron Works...
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...Tyronda R. Cole D03199304 Negotiations HR595 June 18, 2011 This paper will focus on the strategies and techniques used by members of a community in Cordova, Tennessee to prevent the opening and continued success of Stella Marris, a restaurant owned by Steve Cooper, a well established business owner within the community. Currently, the residents in Cordova are working diligently to stop a suspected strip club from opening in their area. Stella Marris Coastal Cuisine and Lounge, located at 7955 Fischer Steele Road, and owned by Steve Cooper originally opened in October 2009 but closed in the Summer of 2010 for renovations in order to upgrade the facilities. Based on Stella Marris’ Facebook page, they have implemented the following changes to the establishment in order to enhance and make the facility more conducive and elaborate for its clients and staff: Improvements to the property as well as operational refinements are being made to the facility. A new parking lot adjacent to the current lot and entry way from Germantown Parkway will be constructed for added convenience. Definitive signage along Germantown Parkway will be added for visibility. New bathrooms in place of some private rooms will be constructed. Some refinements in the lighting and sound system for disc jockey and live entertainment are in the works. Bar area, computer and surveillance systems will be upgraded. The planned renovations were based in part from feedback and operational handicaps...
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...Cooper Industries Inc. Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor's offer and Cooper financial data was decided. The remainder of this paper will provide the analysis and rationale for this determination. Should Cooper Industries Acquire Nicholson File Company? Cooper Industries has been expanding through diversification since 1996. Cooper's requirements to acquire a company has three major components. The target company must be: 1. In an industry in which Cooper could become a major player 2. In an industry that is fairly stable, with a broad market for the products and a product line of small ticket' items; and 3. A leader in its market segment. When looking at the criteria that Cizik's company (Cooper Industries), set forth relative to acquisitions, the acquisition of Nicholson meets all three objectives plus has significant potential short and long-term potential. Cooper management feels that by eliminating redundancy and streamlining Nicholson's operations this potential can be realized. Currently, Nicholson's financial history boasts a 2% increase in profit annually...
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...For the exclusive use of C. SULLIVAN Harvard Business School 9-391-095 Rev. April 18, 1995 Cooper Industries’ Corporate Strategy (A) The business of Cooper is value-added manufacturing. – Cooper Industries’ management philosophy Manufacturing may not be glamorous, but we know a lot about it. – Robert Cizik, Chairman, President and CEO Cooper Industries, a company more than 150 years old, spent most of its history as a small but reputable maker of engines and compressors to propel natural gas through pipelines. In the 1960s, the firm’s leaders decided to expand the company to lessen its dependence on the capital expenditures of the cyclical natural gas business. During the next 30 years, the company acquired more than 60 manufacturing companies that dramatically increased the size and scope of Cooper Industries (Exhibits 1 and 2). Through a process that both insiders and outsiders called “Cooperization,” the company welded a group of “independent, over-the-hill companies into a highly efficient, profitable, competitive business.”1 By 1988, the diversified industrial products company derived $4.3 billion in annual revenues from manufacturing 2 million items. Cooper’s products ranged from 10¢ fuses to $3 million turbine compressor sets marketed under an array of brand names, the most famous of which was Crescent wrenches. “We decided a long time ago,” said Robert Cizik, chairman, president, and CEO, “that if we could do an outstanding job at the unglamorous part by making necessary...
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...Let’s MOTOR. ® Find a MINI Dealer at MINIUSA.COM * BOOT TO BONNET NO COST MAINTENANCE. MINI also wants to ensure the proper performance of your vehicle, so we offer No Cost Maintenance standard for the first 3 years or 36,000 miles. WARRANTY.* At MINI, our commitment to quality and customer satisfaction is clearly demonstrated by a 4-year/50,000-mile New Passenger Car Limited Warranty and a 12-year/unlimited-mileage limited warranty against rust and corrosion perforation. * ROADSIDE ASSISTANCE PROGRAM. The MINI Owner experience continues out on the road. You are only a toll-free phone call away. The MINI Roadside Assistance Program is available 24 hours a day, anywhere in the U.S., Canada or Puerto Rico. The program offers towing, lock-out service, on-site assistance and even custom computerized trip-routing services. And for a nominal fee, the MINI Service Card extends this service after the New Passenger Car Limited Warranty for as long as you wish. * BE part of the family. For a list of terms and conditions for all the good stuff above, visit MINIUSA.COM/SERVICE **MINI received the highest numerical score among mass market brands in the proprietary J.D. Power and Associates 2010–2011 Sales Satisfaction Index (SSI) StudiesSM. 2011 study based on responses from 24,045 buyers, measuring 19 mass market brands and measures satisfaction of new-vehicle buyers who purchased or leased their vehicles in May 2011. Proprietary study results are based on experiences and...
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