Monday, June 17, 2019

Cooper's Industries M&A Case Study Example | Topics and Well Written Essays - 500 words

makes Industries M&A - Case Study ExampleThe complementary outgrowth continued throughout the 1970s as did the diversification into colligate areas. The main aim of this corporate strategy has been to lessen its dependence on the cyclical innate gas business. 2) Coopers creates value through building similar businesses around related areas of its expertise and then achieving synergies from these businesses. The value that is created is by combining the strengths of the related diversification and complementary building by which the company achieves capabilities in areas close to each other. This synergy helps it to achieve scale and size in running the business. Hence, Coopers creates value through these twin processes and by achieving synergies. 3) The constitute resources of Coopers are its people and especially those in the upper reaches of management. The company has consciously followed a strategy of hiring the best talent available to run its various businesses and this ha s resulted in it achieving a corporate market-gardening that has become an asset for the company. The other key resource of Coopers is its culture of encouraging the various businesses to run autonomously thereby encouraging risk-taking and entrepreneurial spirit among the business units. This is related to the company culture and hence it can be said that Coopers key resources are its people and the processes that it has built around them. 4) It is my view that Coopers should non acquire Champion Spark plugs. There are many reasons for this and they range from the gigantic restructuring that needs to take place at the organizational and operational take aim as well as the huge increase in its debt percentage resulting from the deal. Further, the company does not stand to gain from integrating another company that is generally into manufacturing spare parts as the potential synergies from such a move are debatable.

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