Louis Chenevert is a profound thinker steep in his business dynamics. However, those who have ever held a conversation with him over a cup of coffee put it that he makes one grab a few core precepts that aids at explaining UTC’s achievements. First and foremost, UTC is not a conglomerate in the sense that it’s a combination of disconnected businesses. Its target is in two broad markets, aerospace in conjunction with building technologies. It’s in these broad markets that UTC is consistently searching both functional and financial synergies. For example, it has joined up Otis with its climate and regulates business so that it can provide integrated solutions to the commercial and infrastructure projects all over the world. Also, it’s doing similar with Pratt and the most recent Goodrich aerospace business.
Goodrich and the legacy of the Hamilton Sundstrand Unit Company are comprised of divergent aerospace technology business which if combined with Pratt&Whitney engines provides the market that’s equal to one-stop shopping for airframe integrators such as Embraer and Bombardier. This combination allows UTC to offer more content to start up aircraft. The same way as the combination of Otis elevators and escalators with carrier air conditioning enables the company to provide comprehensive and clear explanations for a family of complementary technologies which was used as the cover of annual underscores with the single-word theme, ”Focused” in 2013.
Apart from focus, UTC explores balance in its portfolio of various business between different types of market in conjunction with its users. Louis Chenevert said that demand cycles in the military world, as well as the commercial world, usually follow various rhythms that can smooth out results from one year to the other and revenue as well. For example, the demand for commercial jet engines may go down in the time of international tension whereas the demand for military engine rises. Thus, by retaining compatible skills and capabilities in both parts of the aerospace market. UTC can then keep its resources productively utilized. The companies that run explicitly exclusively in the military and commercial business sectors are highly exposed to the boom-and-bust cycles that impact mass layoffs.https://www.bloomberg.com/news/articles/2015-09-08/goldman-sachs-hires-former-united-technologies-ceo-chenevert