Louis Chenevert has done an amazing thing during his run in business. From the time he began gaining his production management degree at HEC of Montréal, to his time at General Motors, to his time at Pratt & Whitney, and to his time at United Technologies Corporations, he has done a phenomenal job in establishing himself as a legend.
Louis Chenevert began laying the groundwork to become a legend when he first arrived at United Technologies Corporation. Upon his arrival, the other executives informed him that profit was decreasing exponentially due to the global recession. In order for United Technologies Corporation to continue doing business, they would have to find a way to stabilize a profit margin. (Follow: twitter.com/louis_chenevert)
Chenevert decided along with the executives of the best way to accomplish this goal would be to acquire other companies led similar products that they had but different enough not to be affected by the recession. After brainstorming together with the board, Chenevert settled on three businesses to acquire, Pratt & Whitney, Otis, and Goodrich.
The reason they discussed acquiring Pratt & Whitney would be to gain access to their valuable military contracts. Pratt & Whitney have contracts with the United States of America, Japan, and Canada. After United Technologies Corporation acquired Pratt & Whitney, they became the largest provider of military helicopters in the entire world.
The reason they discussed acquiring Otis would be to expand into the heating and cooling sector of aerospace manufacturing. The contracts they acquired through Otis were worldwide and allowed them to expand into countries that were not suffering as bad from the recession.
The reason they discussed acquiring Goodrich was that Goodrich was pretty much their counterpart in the commercial airline industry. If they were able to merge businesses, they would dominate both the military and the commercial airline industry. This cost them $16.3 billion, but in the end, it raised their company’s net worth by $28 billion to bring the total value of United Technologies Corporation to $68 billion. Learn more about Chenevert on Crunchbase.
In return for these many legendary services, Chenevert commanded a respectful compensation package of $28 million. Go To This Page for additional information on Chenevert.
Louis Chenevert is a business legend because of his work with United Technologies. He single-handedly took the United Technologies Corporation and turned it into a juggernaut within the aerospace manufacturing sector. Louis Chenevert is hailed by many as one of the leading business experts and it seems that everybody wants time to learn at the feet of this master.
The reason he can be hailed as a legend in the business world is because he received a production management degree from the University of Montréal. He would use this degree in production management as a launching pad to better things.
After graduation, he would go to work for General Motors for 14 years. He chose to become a production general manager, overseeing the Pontiac line because this was great training grounds to become a chief executive officer one day.
In 1993, Chenevert was approached by the company Pratt and Whitney, which is an aircraft engine manufacturer, to become the COO. After working for Pratt and Whitney for six years, he was promoted to the role of President and chair of the board.
After helping Pratt and Whitney’s stock rise by nearly 50%, he was approached by the United Technologies Corporation and offered the role of chairman and chief executive officer. Working with United Technologies Corporation he was able to produce jet engines, both commercial and military. In fact, he was able to purchase several of the military contracts he had at Pratt & Whitney. This led United Technologies Corporation to be the world’s leading provider and military aircraft.
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Through his leadership, United Technologies would have their stock rise 200% and cap out at $117. The rising stock prices mainly had to do with several key acquisitions he made while working for the company. One acquisition was the world’s oldest elevator company, Otis. However, in a move that will shake the entire industry, he was able to acquire Goodrich for a grand sum of $16.8 billion. Source: http://frenchtribune.com/teneur/25552-innovative-deals-and-inspired-leadership-characterize-louis-chenevert
After his successful run at United Technologies Corporation, the entire corporation was estimated to be worth around $69 billion as of 2017. See related post on louis-chenevert-leadership-investment-innovation/.
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