Cooper Industries

barrel maker Industries  Since 1996, Cooper Industries has been expanding through diversification. Coopers requirements to acquire a telephoner have three major components. The target company must be in an assiduity in which Cooper could become a major player, in an industry that is clean stable, with a broad commercialize for the products and a product crinkle of small ticket items, and an overall leader in its market segment. When looking at the criteria that Cooper Industries, set in sexual intercourse to acquisitions, the acquisition of Nicholson meets all three objectives. Moreover, Nicholson has significant short and long-run profitability. Cooper feels that by eliminating certain costs and focusing Nicholsons trading operations to specific key items, the full potential of Nicholson can be realized. Currently, Nicholsons financial history shows a 2% increase in profit annually, but this percentage falls below the industry average of 6%. Cooper management thought that if Nicholson focuses its products and specific markets Cooper could make significant changes to the profitability of Nicholson. The ii main areas Cooper felt they could improve within the Nicholson social structure are: cut cost of goods sold from 69% of gross revenue to 65%, and lowering selling, general, and administrative expenses from 22% of sales to 19%.

Nicholson holds a exceedingly receiptsous position in the charge and rasp market where currently they hold a 50% market share of a $50 million horse mark market. In addition, Nicholsons second product line of hand dictums and saw blade industry is also strong since Nicholson holds a 9% market share in the $200 million dollar market. In this particular market segment, Nicholsons only major competitor was Sears and Robuck and Company and Diston Incorporated. Nicholson also had a huge advantage in all of the competitive markets due to a highly efficient distribution system and an overall strong telephone line strategy for success. The maximum price that Cooper can spend to pay for... If you want to get a full essay, couch it on our website: Ordercustompaper.com

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