Company Comparison: Raytheon (Rtn) and Textron (Txt) Essay

Raytheon was founded in Cambridge, Massachusetts in 1922, as the American Appliance alliance, by Laurence K. Marshall, Vannevar Bush, and Charles G. Smith. Marshall and Bush were engineering science students, while Smith was an inventor and scientist, plainly they were all entrepreneurs. After failures to market an idea for a new icebox the trio began to focus on electronics. (Raytheon, Wikipedia.com)An idea that Smith and Bush had worked on years earlier, a new kind of gaseous tube that would depart radios for the prototypal time to be plugged into a wall socket and live on on electricity rather than batteries, would be their new direction. (Raytheon party, fundinginguniverse.com) After acquiring a patent for the idea and because an Indian confederacy already had rights to the ready American Appliance Company, Raytheon Manufacturing Company was born. (Raytheon Company, fundinginguniverse.com) The consumer require for electronics was booming and the new radio- pass catcher advocator supply (gaseous rectifier), which immediately allow radios to be in every kinsfolk for pennies of what it cost to continuously replace batteries. (History, Raytheon.com)As the competition for radio-receiving tubes began to intensify Raytheon, in the important Laurence K, Marshall, saw the need to diversify. (Raytheon Company, fundinginguniverse.com) Raytheons philosophy soon became to find out companies that could comport Raytheon to new heights in the competitive electronics market and to reinvest profits clog up into the smart set for research and to development and improve outputs. They readd Acme-Delta Company in1933 a manufacturing handicraft of transformers, power equipment, and electronic auto parts and Raytheon soon became the worlds largest vacuum tube manufacturing companies. (Raytheon, Wikipedia.com)During World War II Raytheon had the opportunity to athletic supporter Allied Forces with the mass production of magnetron tubes, which improved the cap ability of radar to divulge enemy planes. As the war ended Raytheon go on to search for withdrawment opportunities in an attempt to consolidate independent comp wizardnt manufacturers into wholeness company. (Raytheon Company, fundinginguniverse.com) They acquired Belmont electronics, who was developing televisions for commercial use, for $4.6 million in 1945 and Rus fail Electric for $1.1 million posterior on the same year. (Raytheon Company, fundinginguniverse.com) A merger with Submarine Signal Company in 1946 helped Raytheon make it thru tough times after WWII and it was decided that Sub-Sig would specialize in sonar devices and that Raytheon would continue to develop new radar systems. (History, Raytheon.com)The relationships Raytheon developed during WWII helped it promote the company and the productions of magnetron tubes lead them to their next great invention, the ability to use microwaves to touch on food. In 1947 Raytheon demonstrated the initiatory microwave, p lainly it was their acquirement in 1965 of Amana Refrigeration, Inc, a manufacturer of refrigerators and air conditioners that made the microwave oven actually affordable and 1967, Raytheon introduced the first countertop, domestic 100-volt microwave oven. (History, Raytheon.com) The microwave brought great profits to Raytheon. This led to acquisitions of galore(postnominal) much companies over the next decade.In 1948 Raytheon developed the first rocket guidance system in which both the radar transmitter and receiver were carried in the nose of the missile itself. (History, Raytheon.com) This lead to Raytheon receiving a contract from the U.S. armament in 1967 to develop its much needed missile defense system, later named the Patriot Missile System. The missile guidance system, much in demand during the Cold War of the 70s and 80s and Persian Gulf Wars, became a major part of Raytheons occupation. Raytheon has continued to acquire companies, including Beech Aircraft in 1980 an d the defense logical argumentes of Texas Instruments Inc. in 1997, it deems necessary to achieve its polishs and unfold its patronage. Raytheon is currently composed of six major business divisionsIntegrated defending team SystemsIntelligence and Information Systems Missile Systems Network Centric Systems Raytheon Technical go Company LLC Space and Airborne Systems (wikinvestment.com)Raytheons current chief executive officer and Chairman, William H. Swanson, was named chief executive officer in 2004. He graduated from California Polytechnic State University with a bachelors degree in industrial engineering and acquired his MBA from florid State University. (Leadership, Raytheon.com) He joined Raytheon in 1972 and held a wide black market of leadership positions, including manufacturing manager of the companys Equipment Division, and general manager of Raytheon Electronic Systems . (William H, Swanson, wikipedia.com) Swanson is the member of numerous military advisory boar ds and continues Raytheons pursuit to be the leading supplier for defense systems and continued innovations.He has continued to acquire companies that will allow Raytheon to achieve its goals more efficiently. Raytheons November 4 acquisition of Trusted Computer Solutions (TCS), an industry leader in cross-domain and cyber security software system and services, and acquiring Technology Associates Inc, a company that delivers full life-cycle computer engineering to mission-critical programs in the U.S. intelligence community, in October 2010, are examples of Swanson continuing the philosophies of Raytheons founders. (Leadership, Raytheon.com)Textron (TXT) bursting charge statement to be one of the Worlds Best Managed companies nice Managers of Shareholder Resources A Multi-Industry Company with Global Leadership Positions in each of Our Businesses. (Textron Inc., fundinguniverse.com) Background and HistoryTextron was founded by Royal subatomic in 1923, as the Special Yarns conne ction in Boston, Massachusetts and was a textile company. A Harvard Graduate, Royal flyspeck was an straight-from-the-shoulder advocate for non-related diversification, so any nap turns of one business would stool minimal to no affect on other components of the company. (Textron Inc., fundinguniverse.com) With the acquisition of Franklin mathematical process Company, a cotton yarn touch company in 1928, they became the first multi-industry company. (Textron, Wikipedia.com) Changing its name to Atlantic Rayon alliance during World War II, business flourished from the demand for parachutes. (Company History,Textron.com) flyspeck was extremely manpower on and as tax income slowed at the end of WWII he locomote to producing lingerie and other consumer goods. (Textron.com) In 1943 the name was changed to Textron and in 1947 it was listed on the impudently York Stock Exchange.Royal Little was known for hostile takeovers and his irrepressible impulses to acquire more companies. (Textron Inc., fundinguniverse.com) In 1956, in an attempt to balance his own business style, Little hired banker Rupert Thompson. This compact became known as the first conglomerate. (Textron Inc., fundinguniverse.com) Thompsons main objectives, as the director and doubtfulness of Textrons non-textile operations and as Littles successor, were to balance Textrons acquisitions and smirch the affects an economic downturn in one portion of company would mother on the rest of the company. Thompson believed the company should sell any division of the company at the first sign of adverse performance and this included the marketing of Textrons last textile holding, Amerotron, in 1963. (Textron Inc., fundinguniverse.com) done the 60s and 70s Textron made many more acquisitions. Perhaps the most dramatic was the purchase of price Aircraft Company for $32 million in 1960. tam-tam was best known for its helicopters, it gave Textron entrance into the aerospace industry, and price Aer ospace became the name of this Textron division. (Textron, Wikipedia.com) Royal Little also retired at the end of 1960, but with Rupert Thompson taking over Textron continued growth through acquisition. In 1984 Textron acquired Avco Corporation which doubled the size of Textron and in 1992 the acquisition of Cessna Aircraft Company balanced the Bell Aerospace divisions defense-related business activity.Mission statement to be one of the Worlds Best Managed companies Excellent Managers of Shareholder Resources A Multi-Industry Company with Global Leadership Positions in Each of Our Businesses. (Textron Inc., fundinguniverse.com) Background and HistoryTextron was founded by Royal Little in 1923, as the Special Yarns Corporation in Boston, Massachusetts and was a textile company. A Harvard Graduate, Royal Little was an outspoken advocate for non-related diversification, so any down turns of one business would have minimal to no affect on other components of the company. (Textron Inc., fundinguniverse.com) With the acquisition of Franklin Process Company, a cotton yarn processing company in 1928, they became the first multi-industry company. (Textron, Wikipedia.com) Changing its name to Atlantic Rayon Corporation during World War II, business flourished from the demand for parachutes. (Company History,Textron.com) Little was extremely hands on and as revenue slowed at the end of WWII he moved to producing lingerie and other consumer goods. (Textron.com) In 1943 the name was changed to Textron and in 1947 it was listed on the New York Stock Exchange.Royal Little was known for hostile takeovers and his irrepressible impulses to acquire more companies. (Textron Inc., fundinguniverse.com) In 1956, in an attempt to balance his own business style, Little hired banker Rupert Thompson. This partnership became known as the first conglomerate. (Textron Inc., fundinguniverse.com) Thompsons main objectives, as the director and head of Textrons non-textile operations and as Li ttles successor, were to balance Textrons acquisitions and minimize the affects an economic downturn in one portion of company would have on the rest of the company. Thompson believed the company should sell any division of the company at the first sign of adverse performance and this included the selling of Textrons last textile holding, Amerotron, in 1963. (Textron Inc., fundinguniverse.com)Through the 60s and 70s Textron made many more acquisitions. Perhaps the most impressive was the purchase of Bell Aircraft Company for $32 million in 1960. Bell was best known for its helicopters, it gave Textron entrance into the aerospace industry, and Bell Aerospace became the name of this Textron division. (Textron, Wikipedia.com) Royal Little also retired at the end of 1960, but with Rupert Thompson taking over Textron continued growth through acquisition. In 1984 Textron acquired Avco Corporation which doubled the size of Textron and in 1992 the acquisition of Cessna Aircraft Company bala nced the Bell Aerospace divisions defense-related business activity. (Company History, Textron.com)Textron has been consistent in acquiring companies that offer complementary products, markets, or manufacturing processes and this has allowed them to comfortably merge their various companies into one large division. Examples of this are their Textron Automotive Company which merged six different automotive businesses and Textron Fastening Systems Inc. which merged pentad fastening companies. (Company History, Textron.com) Textron currently consist of the following five major business divisionsCessna (32%)Bell (27%) Textron Systems (18%) Industrial (12%) Finance (11%) (wikinvestment.com)Textrons current CEO and hot seat is Scott C. Donnelly. He has been with Textron since2008 and became CEO in December of 2009. Donnelly, who was formerly the president and CEO for General Electric (GE) Aviation, got his Bachelor of Science degree in electrical and computer engineering from the Univ ersity of Colorado. (Company History, Textron.com) Donnellys philosophies are similar to Textrons ancient CEOs as he continues to implement restructuring and new product development. His work with GE Global Research, the worlds largest and most modify industrial research organization, will help him keep Textron diversified, which was always the goal of the founder.