Mission statement: “Aspiring to be the most admired defense and aerospace systems supplier through world-class people and technology”. (Raytheon.com) Background and History
Raytheon was founded in Cambridge, Massachusetts in 1922, as the American Appliance Company, by Laurence K. Marshall, Vannevar Bush, and Charles G. Smith. Marshall and Bush were engineering students, while Smith was an inventor and scientist, but they were all entrepreneurs. After failures to market an idea for a new refrigerator 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 allow radios for the first time to be plugged into a wall socket and operate on electricity rather than batteries”, would be their new direction. (Raytheon Company, fundinginguniverse.com) After acquiring a patent for the idea and because an Indian company already had rights to the name American Appliance Company, Raytheon Manufacturing Company was born. (Raytheon Company, fundinginguniverse.com) The consumer demand for electronics was booming and the new radio-receiver power supply (gaseous rectifier), which immediately allow radios to be in every household for pennies of what it cost to continuously replace batteries. (History, Raytheon.com)
As the competition for radio-receiving tubes began to intensify Raytheon, mainly Laurence K, Marshall, saw the need to diversify. (Raytheon Company, fundinginguniverse.com) Raytheon’s philosophy soon became to acquire companies that could take Raytheon to new heights in the competitive electronics market and to reinvest profits back into the company for research and to development and improve products. They acquired Acme-Delta Company in1933 a producer of transformers, power equipment, and electronic auto parts and Raytheon soon became “the world's largest vacuum tube manufacturing companies”. (Raytheon, Wikipedia.com) During World War II Raytheon had the opportunity to help Allied Forces with the mass production of magnetron tubes, which improved the capability of radar to detect enemy planes. As the war ended Raytheon continued to search for acquisition opportunities in an attempt “to consolidate independent component manufacturers into one company”. (Raytheon Company, fundinginguniverse.com) They acquired Belmont Electronics, who was developing televisions for commercial use, for $4.6 million in 1945 and Russell Electric for $1.1 million later 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 grow the company and the productions of magnetron tubes lead them to their next great invention, the ability to use microwaves 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 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 many more companies over the next decade.
In 1948 Raytheon developed the first missile 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. Army 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 70’s and 80’s and Persian Gulf Wars, became a...