The champagne and wine were flowing. The hors d’oeuvres were being handed out left and right. The laughter of women could be heard and patting on back of proud men resounded throughout the halls. All of the previous chief executive officers came to the podium and told of their days at United Technologies Corporation. Finally after all had transpired, Louis Chenevert took to the stage. The applause was so loud that most people could not even hear themselves think. He regaled them with stories of the hard times of United Technologies Corporation but also of the good times which showed that the company could endure no matter what this crazy world threw at them.
After he got off the podium, other executives told the three-part structure that he used to grow this business. His first strategy was simple; increase the profits to offset the expenses. United Technologies Corporation was hit extremely hard during the time of the recession. This recession ransacked many corporations and almost destroyed UTC. He knew that the main product of UTC, jet engine parts and flight sensors, would not be able to sell in that economy. If they wanted any chance of survival, they needed to sell other products until the economy settled out.
Interesting development in the aerospace sector: https://t.co/9xzKKNQ3sH
— Louis Chenevert (@louis_chenevert) February 20, 2018
He secured the military contracts and infrastructure contracts from Pratt & Whitney and Otis in order to be able to create a sustainable income for the United Technologies Corporation.
The second strategy that he employed was to systematically go throughout the business and decrease the spending that was unnecessary. He noticed quickly that the company was spending $15 million to hire a third party organization to transport their own goods. He rightly saw this as a useless contract and immediately canceled it the moment the contract would allow.
The third strategy he used was to ally with the American and Canadian governments by being a lead example in adhering to environmental regulations. This got him in good with lobbyists and politicians was awarded him many government contracts in order to provide United Technologies Corporation with a consistent income streams it needed.