Essay About First Acquisition Pioneer Rubber Company And Dunlop Emeging Strategies

Dunlop Emeging Strategies
The first decades of the 20th century, Dunlop did their first acquisition Pioneer Rubber Company. However, in 1914 they divested again some operation part of Pioneer and in 1969, Dunlop buy back the Ansell operations. Furthermore, they speed up their investment in more rubber companies such as Perdriau Rubber Company, Barnett Glass Rubber Company and Olympic Tyre and Rubber Company etc. As a result of this extensive expansion on tyre industry, they had to face serious challenges. Another problem for Dunlop was that it had developed a habit of purchasing its major competitors rather than beating them in head-on competition.  After 1930 the management decided to diversify their investment in several industries. They acquired so many companies and in 1971 their debt ratio was 1.25$ for each 1$ equity. All those divisions operated as separate divisions and there was a lack of integration within the business units & divisions. Management acquired that giant business without considering whether the target firms could actually add synergistic value to Dunlop Group. As a result of this over diversified conglomerate and lack of attention towards operations, they had to incurred 400million $ to settle law cases. Moreover, they acquired more and more low growth industries due to lack of concern about environmental changes and lack of industrial analysis etc. The origin of the Pacific Dunlop can be traced back to the Northern Ireland, where in 1888 by John Boyd Dunlop invented the first pneumatic bicycle tyre.The company grow steadily – advertised widely in magazines, newspapers, billboards, actively involved in promotion of cycle racing. Overseas expansions – opened new factories in France, Germany, North America, Australia.1896 – Major down turn in Dunlop’s tyre sales. It left company to poor financial position.Sell overseas holdings.The 1st decades of 20th century, arrival of the motorcar in Australia. Pioneer Rubber Company – purchase competitors.Beginning of the 1st word war in 1914 – Divested again some operation part of Pioneer. In 1969 buy back the Ansell operations.(rubber gloves) . Today Ansell is a core business unit for Dunlop.