Aircraft manufacturing industry had mixed results

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Reference no: EM133589419

The Boeing Company began as Pacific Aero Products Company in 1916 by William E. Boeing. Boeing had inherited a large sum of money from his father, which he used to start a timber business in Hoquiam, Washington. His timber company earned much of its profits from lumber shipments to Europe. In 1917, the company changed its name from Pacific Aero Products Company to The Boeing Company. The company has been in business for 107 years.

The Boeing Company has been involved in 33 acquisitions and mergers over the years. Its most high-profile merger was with McDonnell Douglas, the maker of the DC-9 and DC-10. That merger was completed in 1997. The Boeing Company was formed as a corporation.

I'm not sure if sole proprietorships, partnerships, and LLC's existed in the early 1900s. I couldn't find any information that showed when the different types of business structures were first available. I also don't know what protections were afforded to corporations 107 years ago. As a corporation defined by today's standards, Boeing would have limited liability, which seems to be a very logical choice given the unreliability of airplanes in the early 20th century.

Though Boeing's timber company was quite successful and profitable, the early years in the aircraft manufacturing industry had mixed results. First, Boeing didn't have a focused plan. He wanted to be involved in manufacturing and flight instruction as well as producing aircraft to be used in the war and commercially. While his Pacific Aero Products Company focused on airplane products, The Boeing Company focused on aircraft. Boeing did not have any kind of structure within its company and had hired a very large staff early on. Executives oversaw both sales and marketing. Sales of the airplanes early on were weak. He didn't have a sales force until well after he had already started selling his planes. Boeing was flush with cash from his timber company, but early simply pulled cash from his pockets to fund the company. He would later use ledgers to record the cash he invested in the company.

Reference no: EM133589419

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