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
…show more content…
More fundamentally giving each division manager the responsibility of its divisions operations and not allowing it to interfere with other divisions.
Cooper empire added value to the corporation in a variety of ways:
Manage Cooper’s over all corporate portfolios
• Pursuing companies have stable earning or earning counter cyclical to oil and natural gas
• 30 years acquired more than 60 manufacturing companies
• Retain only best top leadership from the acquired business
• Centralized activities including managing inventories, sales, shipping, billing and headquarters.
• Over 30 divestitures in under 20 years in efforts to only keep business that would continue to add value
• Half of growth depends upon internal growth and other half from acquisitions
• Reviewed about 100 potential acquisitions annually.
• Division had a global responsibility for its operations.
• Close examination of business parts in order to place different products into a more well suited area of the corporation.
• Corporate management teams participate in every policy decision made in the organizations
• Internal audit staff and four person team of manufacturing cost systems experts available
• Labor relation, shareholders and public relations, environmental matters, legal affairs, administering personnel policy and benefits programs handle by one person.
• Strong union-avoidance policy
• Precisely
Philip J. Cooper v. Charles Austin 837 S. W. 2d 606 (Tenn. Ct. App. 1992)
The following information is provided for adjustments prior to closing the books. Lopez and Knepp ask you to enter the adjustments into the spreadsheet, in the two columns to the right of the unadjusted trial balance. (CM2 uses a perpetual inventory system.)
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
4- The committee and Ms Beckel decided to include a religious studies curriculum in the program. The principal approved of it. However, Ms Wright one of the community members did not. She threatened to show up at the committee meeting with the media. On the day of the meeting, Ms Wright showed up with a placard protesting the use of the bible in public schools.
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
Ramanujam and Varadarajan (1989) consider that the desired diversification could focus both internal business development and venturing into new business activities through mergers and acquisitions.
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
The Paul Olsen case describes the situation for a decision that Paul Olsen needs to make. Paul and Robert Rose devised a plan to open a piano bar in a new urban mall development in Pittsburg, PA. If successful, Paul and Robert would add a restaurant and café at the same location to grow their business. With three and a half months before opening, Paul did not have enough investors to fund the startup costs, so he needs to decide whether to invest all of his student loan money ($12,500) to maintain the timetable for the opening.
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
Originally serving only small businesses, the company found it could achieve far greater buying clout by also serving a selected audience of non-business members. With that change, the growth
The value of Travis Perkins plc can be described from the following aspects: First, from the aspect of the relationship with consumers, the company understands the expectations and needs of consumers, respecting them and responding them in time. Second, from the aspect of the group itself, the company works together as a united family to solve problems first when faced problems instead of criticizing someone first. Third, from the aspect of development, the company has a deep understanding of what they do now and what they are going to do next, pursuing being the best (Travis Perkins plc,2011, p10).
Peace and Robison (2000) believe diversification represents a “distinct departure” from existing operations through acquisition or internal generation of separate businesses that are able to provide synergy with the original firm by counter-balancing strengths and weaknesses of the tow businesses. Benefit has been gained through diversification. However, more problems emerge.