The United Technologies Corporation is by far the most dominant aerospace manufacturer in all of North America. They single-handedly equip the majority of corporate and privately owned airlines with fly sensors, autopilot mechanisms, landing gear, and jet engines. While it is the most dominant company in its industry today, this was not always the case.
Between the years 2006 and 2011 the world faced the great recession. As the housing market imploded in the United States of America it sent ripples worldwide. Countries such as Greece and Portugal ended up declaring bankruptcy because of what happened here.
Many industries were affected by the global recession and that included the aerospace manufacturing industry. Many business analysts thought that the clock was counting down concerning the United Technologies Corporation. In their times of desperate need they brought in the big guns. They hired the Chief Executive Officer Louis Chenevert.
Chenevert was able to not only keep United Technologies Corporation afloat, but he was able to nearly triple the stockholder price.
When Chenevert arrived at United Technologies Corporation he merely set to work with three strategies to secure this company’s future. The first strategy was cost-cutting. He knew that during this time of recession, increasing profits would be a very difficult task. Rather than increasing the input, he knew the best strategy would be to decrease the output. By moving several factories close to one another and internally moving their own supplies, he was able to save the company $150 million over a span of five years.
He also stabilized the company by offsetting the deficit. To do this he acquired companies that held strategic value and military contracts and corporate infrastructure.
These wise business moves enabled him to take United Technologies Corporation and move their share price from $37 a share to $117 a share. During his time, he increased the company’s value to the $3 billion. In return for this work, he was awarded a $14 million compensation package.
Chenevert now works for Goldman Sachs as a consultant working in the executive branch division to provide them great Council.