Analysis of Cooper Industries :: Cooper Industries Business Management Essays

Analysis of barrel maker IndustriesOVERVIEWCooper Industries is a more(prenominal) often than not diversified manufacturer of electricaland general industrial crossways, and energy associate machinery and equipment.The social club operates in three different business segments with 21 pauseprofit centers. These segments include electrical and electronic, commercialand industrial, compression, bore and energy equipment. The product line isconsisted of cheap fuses to $3 million compressor tribune sets along withproducts such as hand tools and light fixtures.The company bid a $21-a-sh atomic number 18 tender tenderize to acquire Champion SparkPlug, manufacturer of auto spark plugs, as a counter offer for the Dana Corp.s$17.50-a-share bid. Also, in the mean time, Cooper Industries was get wording a$700 million bid for Cameron Iron Works. Even though purchasing all or bothcompanies will give operational and organizational advantages, on that point were highfinancial risks involv ed. Undertaking both acquisitions would result in a 55% to60% debt to capitalization ratio.ANALYSIS Cooper Industries acquired more than 60 manufacturing companies over athirty year span in parliamentary law to increase the size and the scope of the company.Most of the acquired companies made it possible for Cooper to be independent ofthe outside environment and giving full defy of the manufacturing processconcerning their business while avoiding anti-trust allegations. Cooperbasically purchased every company that is vital to its energy industry and allthe side industries that effect it. From tools to fuses to cables to thedrilling equipment was manufactured and distributed by the corporationsdivisions. Each acquisition is decided from a deficiency list that was closelyexamined and studied. At the time of the take over, the Management evolution& Planning division would implement the corporate strategy in a period of threeto five years. This involves diversification and elimi nation of the productsthat are woeful sellers. In some cases the production plant is relocated and thestaff is reorganize for the best efficient set up. In time all these companiesare turned into profit centers.RECOMMENDATIONS One of my first suggestions will be to consider Cameron Iron Works firstsince all the valves and other natural torpedo and petroleum products will be morebeneficiary. Apparently there is more demand for Camerons products than theChampions. Little adaptations in the production process along with theCooperization adjustment will have make the company efficient in a shortperiod of time. In contrast, Champion is considered to have 1950s productiontechniques and alone one product line, spark plugs, which will requiretremendous changes in spite of appearance the company. The other option may be to purchase both of the companies, irrespective of