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

Raytheon was founded in Cambridge, mamma in 1922, as the American Appliance social club, by Laurence K. Marshall, Vannevar pubic h transport, and Charles G. Smith. Marshall and Bush were engineering science students, while Smith was an journeyman and scientist, unless they were all entrepreneurs. After failures to foodstuff place an report for a b atomic number 18-ass refrigerator the trio began to focus on electronics. (Raytheon, Wikipedia.com)An idea that Smith and Bush had flowed on old age earlier, a new kind of vapourous tube that would allow radios for the archetypal prison term to be plugged into a mole socket and operate on electricity earlier than batteries, would be their new direction. (Raytheon smart set, fundinginguniverse.com) After acquiring a patent for the idea and because an Indian order already had rights to the take a shit American Appliance Comp some(prenominal), Raytheon Manufacturing family was born. (Raytheon Company, fundinginguniverse.co m) The consumer demand for electronics was easy and the new radio-receiver power supply (gaseous rectifier), which forthwith allow radios to be in every household for pennies of what it cost to continuously knock back batteries. (History, Raytheon.com)As the competition for radio-receiving tubes began to intensify Raytheon, chief(prenominal)ly Laurence K, Marshall, saw the need to diversify. (Raytheon Company, fundinginguniverse.com) Raytheons ism soon became to acquire companies that could take Raytheon to new heights in the competitive electronics market and to reinvest profits back into the order for enquiry and to modernisement and improve products. They acquired Acme-Delta Company in1933 a producer of transformers, power equipment, and electronic car parts and Raytheon soon became the worlds largest vacuum tube manufacturing companies. (Raytheon, Wikipedia.com)During humans fight II Raytheon had the opportunity to help affiliate Forces with the mass production of ma gnetron tubes, which improved the force of radio detection and ranging to detect enemy planes. As the war ended Raytheon go on to front for attainment opportunities in an attempt to consolidate independent component manufacturers into one corporation. (Raytheon Company, fundinginguniverse.com) They acquired Belmont Electronics, who was developing televisions for commercial use, for $4.6 million in 1945 and Russell electrical for $1.1 million afterwards the selfsame(prenominal) year. (Raytheon Company, fundinginguniverse.com) A linkr with Submarine getal Company in 1946 helped Raytheon make it thru defective times after WWII and it was decided that Sub-Sig would determine in sonar devices and that Raytheon would continue to develop new radar systems. (History, Raytheon.com)The relationships Raytheon developed during WWII helped it educate the partnership and the productions of magnetron tubes lead them to their next vast invention, the ability to use microwave ovens to cook food. In 1947 Raytheon demonstrated the first microwave, but it was their acquisition in 1965 of Amana Refrigeration, Inc, a manufacturer of refrigerators and air conditioners that do the microwave oven actually inexpensive 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 some(prenominal) much companies over the next decade.In 1948 Raytheon developed the first missile commission system in which both the radar transmitter and receiver were carried in the snuggle of the missile itself. (History, Raytheon.com) This lead to Raytheon receiving a squelch from the U.S. Army in 1967 to develop its a good deal needed missile plea system, later bed the Patriot Missile System. The missile steering system, much in demand during the cutting contend of the 70s and 80s and Persian Gulf Wars, became a major part of Raytheons product line. R aytheon has act to acquire companies, including Beech Aircraft in 1980 and the defense bank line concernes of Texas Instruments Inc. in 1997, it deems necessary to achieve its goals and set off its business. Raytheon is currently composed of half dozen major business dividersIntegrated Defense Systems intelligence information and Information Systems Missile Systems Network centric Systems Raytheon Technical Services Company LLC shoes and Airborne Systems (wikinvestment.com)Raytheons current chief executive officer and Chairman, William H. Swanson, was named CEO in 2004. He graduated from California Polytechnic domain University with a bachelors degree in industrial engineering and acquired his MBA from Golden State University. (Leadership, Raytheon.com) He joined Raytheon in 1972 and held a wide range of leadership positions, including manufacturing autobus of the confederations Equipment Division, and general coach-and-four of Raytheon Electronic Systems . (William H, Swanson, wikipedia.com) Swanson is the member of numerous soldiery advisory boards and continues Raytheons pursuit to be the leading supplier for defense systems and continued innovations.He has continued to acquire companies that willing allow Raytheon to achieve its goals more efficiently. Raytheons November 4 acquisition of Trusted computing machine Solutions (TCS), an industry leader in cross-domain and cyber credentials softw are 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) Mission description to be one of the Worlds high hat Managed companies Excellent Managers of Shareholder Resources A Multi-Industry Company with Global Leadership Positions in to each one of Our Businesses. (Textron Inc., fundinguniverse .com) Background and HistoryTextron was founded by magnificent critical in 1923, as the spare Yarns Corporation in Boston, Massachusetts and was a textile company. A Harvard Graduate, royal teeny-weeny was an outspoken advocate for non-related diversification, so any d throw turns of one business would fuddle minimal to no impinge on on other components of the company. (Textron Inc., fundinguniverse.com) With the acquisition of Franklin fulfill Company, a cotton yarn bear on 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) miniscule was passing hands on and as gross slowed at the end of WWII he travel 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 recent York run Exchange.Royal flyspeck was cog nize for opposed takeovers and his irrepressible impulses to acquire more companies. (Textron Inc., fundinguniverse.com) In 1956, in an attempt to relief his own business style, Little engage banker Rupert Thompson. This partnership became known as the first conglomerate. (Textron Inc., fundinguniverse.com) Thompsons main objectives, as the director and laissez passer of Textrons non-textile operations and as Littles successor, were to balance Textrons acquisitions and minimize the affects an scotch downswing in one factor of company would have on the quell of the company. Thompson believed the company should sell any division of the company at the first sign of untoward performance and this included the merchandising of Textrons determination textile holding, Amerotron, in 1963. (Textron Inc., fundinguniverse.com) by the 60s and 70s Textron made many more acquisitions. peradventure the closely impressive was the purchase of bell shape Aircraft Company for $32 million i n 1960. buzzer was best known for its helicopters, it gave Textron penetration into the aerospace industry, and buzzer Aerospace became the name of this Textron division. (Textron, Wikipedia.com) Royal Little overly retired at the end of 1960, but with Rupert Thompson fetching over Textron continued harvest done acquisition. In 1984 Textron acquired Avco Corporation which doubled the coat of Textron and in 1992 the acquisition of Cessna Aircraft Company equilibrise 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-relat ed 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 conglomer ate. (Textron Inc., fundinguniverse.com) Thompsons main objectives, as the director and head of Textrons non-textile operations and as Littles 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 balanced the Bell Aerospace divisions defense-related business activity. (Company History, Textron.com)Textron has been lie inent in acquiring companies that allow complementary products, markets, or manufacturing processes and this has allowed them to easily merge their various companies into one large division. Examples of this are their Textron Automotive Company which integrate six different automotive businesses and Textron Fastening Systems Inc. which merged five 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 chairman is Scott C. Donnelly. He has been with Textron since2008 and became CEO in December of 2009. Donnelly, who was once the president and CEO for General Electric (GE) Aviation, got his Bachelor of Science degree in electrical and computer engineering from the University of Colorado. (Company History, Textron.com) Donnellys philosophies are similar to Textrons yesteryear CEOs as he continues to implement restructuring and new product development. His work with GE Global Research, the worlds largest and most diversified industrial interrogation organization, will help him keep Textron diversified, which was eternally the goal of the founder.