There is no doubt in anybody’s mind that Louis Chenevert is a legendary businessman. He was able to lead the United Technologies Corporation through its most difficult years during the global recession in the mid 2000’s. During his time at the company, he was able to take the company’s stock and nearly triple it while he was the Chief Executive Officer. This wonderful work led to them having a party to celebrate his work upon his departure.
During the party, many executives and workers told stories on how Louis Chenevert was able to turn around the United Technologies Corporation. They said the first thing he was able to do was position the United Technologies Corporation to connect with the trends of culture. He had foreseen that countries would soon become more friendly toward the environment and moved the United Technologies Corporation to the point that it was able to capitalize on these trends. He worked with the engineering department to lower both the water consumption and carbon emissions so that they could continue to compete when countries passed stricter regulations.
They also spoke on how Louis Chenevert was able to stabilize the United Technologies Corporation during that recession. His strategy for stabilizing the United Technologies Corporation was to help the executives diversify the portfolio. This strategy was simple since United Technologies Corporation was taking a hit in their main product, they needed to offset the deficit by other profit generating mechanisms.
Louis Chenevert scouted out many companies and selected three that would really help United Technologies Corporation thrive. The first company he acquired was Pratt & Whitney. His reason behind this was to secure their valuable ten year long government contracts. This led United Technologies Corporation to becoming the largest helicopter producer in the world. He then acquired the world’s oldest elevator company Otis. This was to secure that company’s connections to corporate infrastructure. Lastly, he acquired the nearest competitor, Goodrich, for $16.3 billion.
The executives also told how Louis Chenevert was able to decrease the spending all of United Technologies Corporation which helped the stock rise.