Ebooks company history part1

BiZdoM : Companies History Part 1 TEAM BIZDOM April 14, 2011 Complied by: Sid

BIZDOM : COMPANIES HISTORY PART 1 Table of Contents AB VOLVO ............................................................................................................................................................. 5 ABB LTD ............................................................................................................................................................... 7 S!D ABN AMRO HOLDING, N V ............................................................................................................................. 8 S!D S!D HOLLANDS KING LAUNCHES ABN IN 1824 .......................................................................................... 8 AMRO IS BORN IN ROTTERDAM: 1863 .................................................................................................. 9 1990: ABN AND AMRO MERGE ............................................................................................................ 10 ACNIELSEN CORPORATION ............................................................................................................................. 11 NEW RESEARCH TECHNOLOGIES: 1960S TO EARLY 1980S................................................................ 12 MARKET RESEARCH IN THE INFORMATION AGE .................................................................................. 13 AEROFLOT SOVIET AIRLINES .................................................................................................................... 14 AOL TIME WARNER INC .................................................................................................................................. 15 S!D FOUNDING A MEDIA EMPIRE IN THE 1920S........................................................................................... 16 COMING OF AGE IN THE 1970S .............................................................................................................. 18 PIONEERING THE ONLINE MARKET IN THE 1980S ............................................................................... 20 AT&T BELL LABORATORIES, INC ..................................................................................................................... 21 S!D AXA ..................................................................................................................................................................... 27 ACER INC ............................................................................................................................................................ 28 S!D EARLY 1990S SETBACKS ........................................................................................................................... 29 NEW METHODS PACE MID-1990S TURNAROUND.............................................................................. 29 AER LINGUS GROUP PLC ................................................................................................................................. 31 AIWA CO , LTD .................................................................................................................................................. 32 S!D S!D LATE 1980S RECOVERY FROM NEAR BANKRUPTCY ............................................................................ 32 AKAMAI TECHNOLOGIES, INC ....................................................................................................................... 34 S!D ALFA ROMEO ..................................................................................................................................................... 36 FOUNDING AN AUTOMOTIVE LEGEND IN 1910 .................................................................................. 36 ALFA LAVAL AB ............................................................................................................................................... 39 SURVIVING THE WAR YEARS ................................................................................................................... 40 GROWTH AND EXPANSION: 1950S-80S................................................................................................ 41 ALLIANZ AG ...................................................................................................................................................... 42 GROWTH IN THE 1920S ........................................................................................................................... 42 PREWAR GERMANY AND WORLD WAR II ............................................................................................ 44 ATARI CORPORATION ...................................................................................................................................... 46BiZdoM : Companies History Part 1 | NEW GAMES AND NEW COMPETITION IN THE EARLY 1980S ........................................................... 47 AUTOMOBILI LAMBORGHINI HOLDING S P A ............................................................................................. 50 S!D S!D S!D FERRUCCIO LAMBORGHINIS ROAD TO CAR MAKING ........................................................................ 51 BASF AKTIENGESELLSCHAFT ....................................................................................................................... 54 NOTORIOUS WORLD WAR II YEARS..................................................................................................... 56 POSTWAR REBUILDING OF BASF............................................................................................................ 57 BHP BILLITON ................................................................................................................................................... 58 EARLY 20TH-CENTURY EXPANSION INTO STEEL ................................................................................. 58 WORLD WAR I BRINGING INCREASED DEMAND, LABOR UNREST................................................... 59 BT GROUP PLC................................................................................................................................................... 60 Feedback at bizdomonline@gmail.com 1

THE BIRTH AND GROWTH OF THE TELEPHONE INDUSTRY IN ENGLAND: 1869-1969 ................. 60 THE MOVE TOWARD PRIVATIZATION: 1969-90.................................................................................. 61BACARDI LIMITED ............................................................................................................................................ 61 A CHANGING LANDSCAPE, 1877 TO 1931 .......................................................................................... 63 THE NEW BACARDI, 1960-89 ................................................................................................................. 65BAJAJ AUTO LIMITED ...................................................................................................................................... 66BANANA REPUBLIC INC .................................................................................................................................. 69 S!D ACQUIRED BY THE GAP IN THE 1980S .................................................................................................. 70 THE TURN OF THE DECADE AND A NEW CORPORATE IDENTITY ................................................... 71BANCA MONTE DEI PASCHI DI SIENA SPA.................................................................................................. 72 MODERN ITALIAN BANKING LEADER ..................................................................................................... 74BARCLAYS PLC ..................................................................................................................................................... 74 MERGERS IN LATE 19TH AND EARLY 20TH CENTURIES ...................................................................... 75BARNES & NOBLE, INC ...................................................................................................................................... 77 S!D OPENING OF NUMEROUS SUPERSTORES: EARLY 1990S....................................................................... 79BATES WORLDWIDE, INC ............................................................................................................................... 80 S!D 1940S BIRTH OF THE UNIQUE SELLING PROPOSITION: 1940S ........................................................... 81BATA LTD .......................................................................................................................................................... 81 S!D WORLD WAR I BOOT CONTRACT A TURNING POINT ..................................................................... 83 BATA SHOES RETURNS TO THE CZECH REPUBLIC IN 1991 ................................................................ 85BAUSCH & LOMB INC ...................................................................................................................................... 87 S!D PREPARING FOR WORLD WAR II............................................................................................................ 88 DEVELOPMENT OF SOFT CONTACT LENSES IN THE 1960S................................................................. 89BAYER A G ........................................................................................................................................................ 92 S!D S!DBAYERISCHE MOTOREN WERKE AG............................................................................................................ 95 ORIGINS AS AN AIRCRAFT-ENGINE BUILDER........................................................................................ 95BLOOMBERG L P ............................................................................................................................................ 100 S!D S!D DESKTOP DATA FOR THE BOND TRADER: 1966--1984 .................................................................. 100 BLOOMBERG BUSINESS NEWS: 1989--1991 ....................................................................................... 101 BiZdoM : Companies History Part 1 "KING OF THE MEDIA": 1996--1997 ................................................................................................... 102CASIO COMPUTER CO , LTD ...................................................................................................................... 104 S!D S!DCREDIT AGRICOLE ................................................................................................................................... 106CADBURY SCHWEPPES PLC ........................................................................................................................ 110 INNOVATION AND EXPANSION: 1879-1964 ..................................................................................... 110 DIVERSIFICATION AND INTERNATIONAL GROWTH: 1870-1969 ................................................... 112CALVIN KLEIN, INC ....................................................................................................................................... 113 S!D ROCKETING TO STARDOM IN THE 1970S .......................................................................................... 113 BRANCHING OUT IN THE 1980S ......................................................................................................... 115CANAL PLUS ................................................................................................................................................... 117@Team BiZdoM 2

BIZDOM : COMPANIES HISTORY PART 1 CANON INC ..................................................................................................................................................... 119 S!D DIVERSIFIED INTO BUSINESS MACHINES IN THE 1960S ..................................................................... 119 CAP GEMINI ERNST & YOUNG .................................................................................................................... 121 CARGILL INC .................................................................................................................................................. 124 S!D CHIAT/DAY INC ADVERTISING .................................................................................................................. 126 S!D CHRISTIAN DIOR S A .................................................................................................................................... 127 S!D S!D POSTWAR ORIGINS OF THE HOUSE OF DIOR.................................................................................... 127 CHUPA CHUPS S A .......................................................................................................................................... 130 S!D S!D CISCO SYSTEMS, INC .................................................................................................................................... 132 S!D 1993-94: FIRST WAVE OF ACQUISITIONS .......................................................................................... 133 CITIZEN WATCH CO , LTD ........................................................................................................................... 134 S!D S!D CITIGROUP INC ............................................................................................................................................... 135 S!D EXPANSION IN THE EARLY 20TH CENTURY ....................................................................................... 136 1998: CITICORP + TRAVELERS = CITIGROUP ..................................................................................... 138 COLGATE-PALMOLIVE COMPANY.............................................................................................................. 140 COMMERZBANK A G .................................................................................................................................... 141 S!D S!D BANK MERGERS BETWEEN THE WARS: 1918-45............................................................................... 142 REORGANIZATION AND GLOBAL EXPANSION: 1945-80................................................................. 143 COMPAQ COMPUTER CORPORATION ......................................................................................................... 144 CONAGRA, INC .............................................................................................................................................. 145 S!D CORBIS CORPORATION ................................................................................................................................. 145 DAIKIN INDUSTRIES, LTD .................................................................................................................... 147 S!D DC COMICS INC ............................................................................................................................................. 148 S!D ATTACK ON COMICS, 1954 ................................................................................................................. 150 DHL WORLDWIDE NETWORK S A /N V ................................................................................................... 150 S!D S!D S!D S!D LATE 1990S AND EARLY 2000S: GRADUAL BEGINNING OF THE DEUTSCHE POST ERA .............. 151 DAEWOO GROUP ............................................................................................................................................ 152 DAIMLERCHRYSLER AG .............................................................................................................................. 153 HISTORY OF CHRYSLER ......................................................................................................................... 154 DEUTSCHE BANK AG .................................................................................................................................... 155 KEY DATES: ............................................................................................................................................. 155 19TH-CENTURY ORIGINS ..................................................................................................................... 155 THE DEPRESSION AND NAZI ERAS ...................................................................................................... 156BiZdoM : Companies History Part 1 | DEUTSCHE LUFTHANSA AG ........................................................................................................................ 157 LUFTHANSA REBORN IN THE 1950S .................................................................................................... 158 DEUTSCHE POST AG ..................................................................................................................................... 160 DIEBOLD, INCORPORATED ........................................................................................................................... 164 QUICKLY BECAME ATM LEADER IN 1970S ........................................................................................ 166 DOLBY LABORATORIES INC ........................................................................................................................ 167 S!D DOMINOS, INC ............................................................................................................................................... 168 S!D FRANCHISING IN THE 1970S ................................................................................................................. 169 DOW JONES & COMPANY, INC ................................................................................................................... 170 S!D THE GREAT DEPRESSION AND THE WARTIME YEARS ....................................................................... 171 Feedback at bizdomonline@gmail.com 3

DR REDDYS LABORATORIES LTD ............................................................................................................ 172 S!D S!DDURACELL INTERNATIONAL INC ............................................................................................................... 172 S!DE I DU PONT DE NEMOURS & COMPANY .................................................................................................. 173 S!D S!D A GUNPOWDER MONOPOLY BY 1900 ............................................................................................... 174ESPN, INC ....................................................................................................................................................... 176 S!DEASTMAN KODAK COMPANY...................................................................................................................... 177ELECTRONIC ARTS INC ................................................................................................................................ 180 S!DELECTROLUX AB ........................................................................................................................................... 180ELI LILLY AND COMPANY............................................................................................................................ 183ENCYCLOPAEDIA BRITANNICA, INC ......................................................................................................... 184 S!DENERGIZER HOLDINGS, INC ........................................................................................................................ 186 S!DERNST & YOUNG............................................................................................................................................ 187EXXON MOBIL CORPORATION .................................................................................................................... 188 THE STANDARD OIL MONOPOLY: 1870-92 ...................................................................................... 190 INDEPENDENT GROWTH INTO A "MAJOR": 1911-72 ...................................................................... 193FANNIE MAE ................................................................................................................................................... 195FEDEX CORPORATION ................................................................................................................................... 197FIAT SPA............................................................................................................................................................ 198FORD MOTOR COMPANY .............................................................................................................................. 200 CASH-STRAPPED IN THE 1920S ............................................................................................................ 201 THE WAR YEARS .................................................................................................................................... 202FORBES INC ...................................................................................................................................................... 203 S!D THE GREAT CRASH AND NEW COMPETITION: 1929--45 ............................................................... 204FRITO-LAY COMPANY .................................................................................................................................... 206 EARLY YEARS OF H W LAY & COMPANY ........................................................................................... 208 S!D S!DFRUIT OF THE LOOM, INC .............................................................................................................................. 209 S!D BiZdoM : Companies History Part 1@Team BiZdoM 4

BIZDOM : COMPANIES HISTORY PART 1 AB Volvo Key Dates: 1915: The Swedish firm Svenska Kullagerfabriken (SKF) forms a subsidiary called AB Volvo to investigate the manufacturing of cars S!D Volvo began as a subsidiary of AB Svenska Kullagerfabriken (SKF), a large Swedish industrial company In 1914 Scania Vabis ceased production of what had S ! D been Swedens only domestically built automobile to concentrate on more profitable trucks A year S ! D later, with the encouragement of the Swedish Association of Engineers and Architects, SKF began a confidential study of the feasibility of manufacturing its own car Assar Gabrielsson S ! D and Gustav Larson started the project S ! D Gabrielsson, who had represented SKF in France and the United States, was a ball bearing salesperson who had closely studied American automobiles Larson was an engineer S ! D with substantial experience in Britain, having worked for the English company White & Poppe S ! D SKF named the secret project Volvo--Latin for "I roll"--a dormant product name the company had introduced in 1915 for a line of ball bearings S ! D Independently incorporated in 1915, hence the title aktiebolaget, or "AB," the venture itself was only informally associated with SKF The primary owners were Larson and Gabrielsson S ! D S ! D After agonizing over dozens of designs, the two partners settled on a simple model that would negotiate Swedish roads, with their snow, mud, steep hills, and millions of potholes, especially well The original design, a S ! D car called the GL, or "Larson," was assembled at an abandoned SKF ball bearing factory at Hisingen, near Göteborg, from parts orderedBiZdoM : Companies History Part 1 | out of various supplier catalogs from throughout Europe and the United States The S ! D first production model, an öV4, later called the "Jakob," rolled out of the factory on April 14, 1927 To the horror of all involved, it was discovered that th e differential had been misconnected, S ! D resulting in a car that had three gears in reverse and only one gear for forward motion The mistake S ! D took only ten minutes to correct and Volvo survived the comical episode S ! D Volvos cars and trucks were extremely sturdy and, by many measures, better assembled than American and other European models In what was the most effective advertising of the day, Volvo S ! D Feedback at bizdomonline@gmail.com 5

models won several speed and endurance tests, racing across Sweden and speeding from Moscow toLeningrad, and later winning contests in Monte Carlo and Argentina Because both Larson and S ! DGabrielsson detested automobile contests, however, Volvo refused to sponsor racers S ! DChallenges During the Great Depression and World War IIAs the economy ground to a halt from the effects of the Great Depression, car sales slumped S ! DGeneral Motors Corporation (GM), which had a Chevrolet plant in Stockholm at the time, attackedVolvo for being, in effect, "kit made " The company conducted a quick study that revealed that its S ! Dcars were about 90 percent domestic content Thus, it hit back at GM, advertising its products as S ! D"the Swedish cars " S ! D BiZdoM : Companies History Part 1@Team BiZdoM 6

BIZDOM : COMPANIES HISTORY PART 1 ABB Ltd S ! D Key Dates: 1883: Ludwig Fredholm establishes Elektriska Aktiebolaget in Stockholm as a manufacturer of electrical lighting and generators S!D Elektriska Aktiebolaget in Stockholm was established in 1883 by Ludwig Fredholm to manufacture electrical lighting and generators based on the designs of a young engineer named Jonas Wenström Wenströms innovative designs S ! D quickly led to financial success, and Fredholm soon wanted to expand the scope of his firms operations He arranged a merger with Wenströms & Granströms S ! D Elektriska Kraftbolag, a company founded by Jonas Wenströms brother Goran S ! D Allm&auml-a Svenska Elektriska Aktiebolaget (whose name was later shortened to ASEA AB) was created on November 18, 1890, to provide electrical equipment for Swedish industry S ! DBiZdoM : Companies History Part 1 | The dawning of the electrical age provided ASEA with large new markets as the industrial and residential use of electricity became commonplace in Sweden The company quickly established itself S ! D as a pioneer in the industrial field ASEAs installation of electricity at a rolling mill in the town of S ! D Hofors is believed to be the first of its kind in the world, and in 1893, ASEA built Swe dens first three-phase electrical transmission, between Hellsjon and Crangesberg ASEAs early success was S ! D short-lived In 1896 one of Swedens leading inventors and industrialists, With the help of the S ! D Stockholms Enskilda Bank, management opposed to Laval eventually extricated the company from Feedback at bizdomonline@gmail.com 7

his control Disorganized and deeply in debt, the firm lost a significant share of the electrical S ! Dequipment market in Sweden Bank played a major role in ASEAs financial recovery In fact, it was S ! D S ! Donly after the bank agreed to guarantee his salary that J S ! DASEA prospered during the early years of the war because the scarcity of coal stimulated thedevelopment of electricity, including the companys first major railway electrification project The S ! Dpostwar years brought a deep recession to Sweden that lasted from 1920 to 1923 Yet Edstroms S ! Dcautious spending policies enabled the company to survive By the late 1920s, ASEA was once again S ! Don the road to profitability and growth In 1926 the company provided the electric locomotives and S ! Dconverter equipment for the first electric trains on the Stockholm -Gothenburg line, and in 1932 ASEAbuilt the worlds largest naturally cooled three-phase transformer S ! DDuring the 1930s, company management decided to concentrate on expandin g and improving itsdomestic operations After several years of negotiations, ASEA and LM Ericsson Telephone Company S ! Dsigned a pact in 1933 stipulating that the two companies would not compete with each other incertain sectors of the electrical market As part of the agreement, ASEA purchased Elektromekano S ! Dfrom Ericsson, giving ASEA undisputed control over a large portion of the electrical equipmentmarket in Sweden S ! DABN AMRO Holding, N V S ! D S ! DKey Dates:1824: Dutch King Willem I create The Netherlands Trading Society (NTS), parent companyof ABN S!D1863: Rotterdamsche Bank (Robaver) is founded and lends funds to Dutch companiesoperating in Indonesia S!D1928: The progressive Robaver opens Vrouwenbank, a bank specifically for women S!DHollands King Launches ABN in 1 824 BiZdoM : Companies History Part 1 The 1991 marriage of the two largest banks in the Netherlands--Amsterdam-Rotterdam Bank (AMRO) and Algemene Bank Nederland (ABN)--gave rise to ABN AMRO S ! D However, each bank arrived at the wedding as a product of previous banking mergers ABNs original ancestor was The S ! D Netherlands Trading Society (Nederlandsche Handel - Maatschapijj), a company created in 1824 by decree of theNetherlands King Willem I--Hollands Merchant Monarch The King and company founders intended S ! Dto revive the trading in the Dutch East Indies (Indonesia) that had flourished during the 17th and@Team BiZdoM 8

BIZDOM : COMPANIES HISTORY PART 1 18th centuries with the Dutch East Indies Company The Netherlands Trading Society (NTS) S ! D managed its operations from the Dutch colony on Java, Indonesias largest island and commercial hub It financed the export of agricultural products which, between 1840 and 1880, brought the S ! D Dutch treasury an average of 18 million guldens a year, about one -third of the countrys budget NTS S ! D opened offices in Shanghai (1825), Singapore (1858), Hong Kong (19 06), and elsewhere around Asia, and soon expanded into traditional banking operations with credits, time deposits, and security orders In 1926, NTS founded Saudi Hollandi Bank in Jeddah to serve the Islamic pilgrims from the S ! D Dutch East Indies For many years it operated as Saudi Arabias central bank maintaining the gold S ! D stock of the country, and processing its first oil-related transactions S ! D NTS survived both World War I and worldwide depression in the 1930s World War II, however, S ! D crippled the company Germany occupied the Netherlands and Japan controlled Indonesia NTS S ! D S ! D attempted to recover by focusing on expansion and opening branches throughout the Netherlands S ! D But by the early 1960s, competition among the numerous Dutch banks had escalated and produce d a period of consolidation In 1964, NTS opted to merge with Twentsche Bank, a 100 -year-old Dutch S ! D agriculture bank, and took on the new moniker--Algemene Bank Nederland (ABN) Seeking more S ! D international balance, ABN in 1967 acquired Hollandsche Bank Unie, which had a large presence in South America In 1975, ABN bought Mees & Hope Bankiers, a Dutch bank with significant S ! D investment banking business and solid network of branches Mees & Hope continued to do business S ! D under its own name, and later added private asset management and fiduciary services for international clients ABNs international reach also extended to the United States In 1972, the S ! D S ! D bank formed ABN Corporation to represent its North American subsidiaries The bank secured a firm S ! D foothold in the Midwest in 1979 when it purchased LaSalle National Bank, the sixth largest bank in the Chicago area with 700 employees Two years later, in a restructuring move, LaSalle Bank S ! D became part of the ABN holding company LaSalle National Corporation The holding company went S ! D on to acquire six other Midwest banks including Exchange Bancorporation S ! D AMRO Is Born in Rotterdam: 1863 AMRO, ABNs merger partner, also began by financing Dutch East Indies trade In 1863, a group of S ! D Rotterdam businesspeople and bankers created the Rotterdamsche Bank, lending funds to Dutch companies operating in Indonesia The bank expanded its local lending activity to other businesses inBiZdoM : Companies History Part 1 | S ! D the Netherlands, then added brokerage and securities firms to the banking operations through mergers By the early 1900s, the company had a listing on the Amsterdam Stock Exchange S ! D S ! D Renamed the Rotterdamsche Bankvereeniging, or Robaver, the bank continued to acquire local banks and also establish overseas bank branches in the West Indies (Antilles and the Bahamas) and Russia S ! D By the early 1920s, Robaver stood as one of the largest banks in the Netherlands, and one of the more progressive banks as well In 1928 it opened Vrouwenbank, a bank specifically for women S ! D S ! D Robaver persevered through the Depression and World War II, and in 1948 became the Netherlands largest bank in when it merged with Incasso Bank, a Dutch institution founded in 1891 S ! D Feedback at bizdomonline@gmail.com 9

The same 1960s bank consolidation movement that produced ABN also swept up Robaver andAmsterdamsche Bank, another Dutch bank founded in the previous century In 1964, S ! DAmsterdamsche Bank and Robaver merged to become the Amsterdam -Rotterdam Bank, or AMRO S ! D1990: ABN and AMRO Merge In the late 1980s the Dutch government softened its merger and acquisition laws The deregulation paved the way for its S ! D national banks to pursue global operations and to sidestep takeovers by dominant global banking players in United States, Japan, and Great Britain As with the banking S ! D consolidation frenzy of 1964, ABN and AMRO proved prominent playersS ! D BiZdoM : Companies History Part 1@Team BiZdoM 10

BIZDOM : COMPANIES HISTORY PART 1 ACNielsen Corporation Key Dates: 1923: Arthur Charles Nielsen, Sr , founds the A C Nielsen Company S!D S!D S!D S!D In 1996 Dun & Bradstreet separated from two of its biggest holdings, Nielsen and Cognizant, splitting them off into independent publicly held companies S!D The companys origins date back to 1923, when an engineer by the name of Arthur C Nielsen borrowed $45,000 to start a business running quality tests S ! D and offering buying suggestions on conveyor belts, turbine generators, and other machine-related parts After that business was nearly bowled over by S ! D the Depression, Nielsen shifted to measuring consumer sales In 1933, S ! D Nielsen introduced measurements for drugstore and retail store sales A year S ! D later, similar measurements were introduced for gr ocery and department store sales By going beyond conventional consumer questionnaires and having S ! D auditors actually survey store shelves and accounting books to determine sales patterns, Nielsen helped pioneer key market research tools --including the concept of market share in 1935 S ! D While he was shaping the discipline of marketing research, Nielsen faced the difficult task of drumming up demand for his services The labor required to gather and tabulate useful data was S ! D expensive, and many businesses were skeptical about paying top dollar for data that they thought they could gather almost as effectively themselves For years my father would go around and try and S ! D explain that his work was worth something Hed quote the price And he couldnt get any takers, S ! D S ! D Arthur C Nielsen, Jr , told Barry Stavro of Forbes in 1984 Nielsen recalled that his fathers attempts S ! D S ! D S ! D to sell his services to Kellogg Co were rebuffed on the grounds that the cereal giant already had its S ! D own, cheaper alternative: a guy stationed outside the gates trying to see how many carloads General Foods shipped out S ! D Though sales did not always come easily to the budding leader in marketing research, A C Nielsen S ! D S ! D Company enjoyed continued growth into the 1950s That decade saw the emergence of new S ! D industries in mass media through radio and television&mdasheas that called for new forms of marketing measurement that Nielsen was equipped to provide Indeed, as early as 1942, NielsenBiZdoM : Companies History Part 1 | S ! D began measurement of radio audiences on a national scale In radios heyday following World War II, S ! D determining radio ratings was a labor-intensive endeavor: listeners would send cards to advertisers, who would actually weigh the mailbags to determine which shows were most popular Improving S ! D upon this technique, Nielsen attached meters to radios in sample households and, eventually, installed cameras that took pictures of the meter readings The heads of the households then mailed S ! D the pictures in to the rating company on a regular basis In the 1950s, the advent of television and S ! D the need for ever-quicker rating techniques spurred the development of meter readers that Nielsen attached to telephone lines for overnight TV ratings This method saved time over past techniques, S ! D but costs were extremely high Still, the relatively young company persisted, driven by the belief that S ! D Feedback at bizdomonline@gmail.com 11

the TV market would grow--and communications technology along with it&mdash-ough tocompensate for the high costs of tracking market trends S ! DNielsens projections were right on the mark, and the rapi d growth of television worked to theoverwhelming advantage of the marketing research company By the mid-1980s, more than $19 S ! Dbillion was spent on national TV advertising; Nielsen metered more than 5,500 homes and generatedapproximately $100 million in revenue from that business segment alone Encouraged by the S ! Dcontinued success of its media rating service, the company established a separate division to manageit Nielsen Media Research provided television advertisers, advertising agencies, syndicates, ca ble S ! Doperators, networks, and stations with TV-rating information to increase the effectiveness oftelevision advertising and programming into the 21st century S ! DNew Research Technologies: 1960s to Early 1980sSuch technological and administrative advances helped position A C Nielsen Company for decades of S ! D S ! Dgrowth and diversification From the 1960s through the early 1980s, the company developed new S ! Dinformation-management systems and attracted a broader client base In 1963, Nielsen introduced S ! Dmeasurement of sales at mass merchandisers, providing a bulk of consumer -related information thatwould have been virtually unmanageable just a decade earlier Three years later, a system of S ! Dwarehouse withdrawal reporting was introduced In addition, the company established a coupon S ! Dclearinghouse segment that would top $91 million in volume by the mid -1980s, with no sign ofslowing down S ! DA momentous advancement for Nielsen was the development of scanning technology, which allowedthe company to collect accurate and instantaneous data on consumer purchases as they occurred S ! DScanning of universal product codes at retail stores was introduced in 1977 By 1979, Nielsen S ! Doffered local SCANTRACK service, which gave clients proprietary means of tracking specific market BiZdoM : Companies History Part 1trends and producing custom reports to develop better marketing and distribution plans A year later, S ! Dsuch services were available on the national level Scanning technology and data processing software S ! Dcontinued to improve, and by the mid-1990s Nielsen considered retail scanning information thenerve center of the changes now underway, according to the companys promotional literature Not S ! Donly do scanning databases bring a speed and precision never previously possible, they also providethe foundation for a range of diagnostic and analytical applications which can help clients find andimplement solutions that grow their revenues and minimize the cost of delivering their products totheir consumers In 1993, Nielsen became the first in the industry to offer sca nning-based S ! Dinformation from warehouse clubs with the introduction of the Nielsen Warehouse Club Service S ! D@Team BiZdoM 12

BIZDOM : COMPANIES HISTORY PART 1 Nielsen also formed other key alliances In August 1987, Dun & Bradstreet acquired Information S ! D Resources Inc (IRI), bringing the market research wonderkid together with its rival, Nielsen IRIs S ! D S ! D flagship product, BehaviorScan, provided a highly effective method for analyzing the effectiveness of TV commercials Under the auspices of the same parent, IRI and Nielsen were freed from the S ! D upward battle of head-on competition and were better positioned to focus on new product development, according to David Snyder in Crains Chicago Business A similar collaboration of S ! D formerly competitive forces occurred in 1988, when Nielsen acquired Logistics Data Sy stems, the market leader whose software product, SPACEMAN, helped retailers profitably manage shelf space and display areas S ! D Market Research in the Information Age Capitalizing on new developments in networking, information modeling, and forecasting, Niel sen was able to introduce a wave of new products in the early 1990s The companys decision-support and S ! D software services enabled customers to retrieve data and analyze information via terminals and personal computers installed in their offices Such information was accessible in a number of ways, S ! D including online connection to mainframes or permanent downloading of information into customers in-house information systems In 1990 alone, new product introductions included: a national S ! D Convenience Store Service representing all major U S chains; the SCANTRACK Food/Drug Combo S ! D S ! D Retail Outlet Service, representing all major U S chains; the Discount Drug Service for health and S ! D S ! D beauty aids (HBA) customers; WealthWise, a modeling tool for consumer -oriented financial services firms; and ScorePlus, which provided demographic and product -use data applicable to specific trading areasS ! D New product introductions kept pace with rapid growth in demand, as ever more powerful computer processing systems were made available to Nielsens customer base In 1991, the company S ! D introduced Spotlight, a system that enabled users to locate and account for volume and share changes for given brands That system would win an award for outstanding artificial intelligence S ! D application from the American Association for Artificial Intelligence in 1992 [Keywords]Other S ! D products introduced that year included: Nielsen Sales Advisor, SCANTRACK Category Manager, andBiZdoM : Companies History Part 1 | ScanQuick In addition, PROCISION provided a single source for tracking all compon ents of HBA S ! D marketing, and the Nielsen Workstation provided Windows -based support for marketers In 1993, S ! D the company introduced Nielsen Opportunity Explorer to help marketing and sales professionals understand category dynamics and pinpoint sales opportun ities Along with Nielsen Promotion S ! D Simulator, that product placed first in the software applications category at the Information Industry Associations Product Achievement Awards in 1993 S ! D This continued financial success and rapid growth sparked the inte rest of Dutch media and marketing giant VNU, and in December 2000 a merger agreement was announced, making Feedback at bizdomonline@gmail.com 13

ACNielsen a wholly owned subsidiary once again The deal reunited the company with Nielsen Media S ! DResearch, which VNU had acquired the previous year Working together, the two market research S ! Dleaders clearly enjoyed a competitive advantage as they moved forward into the information age S ! DAEROFLOT SOVIET AIRLINES Aeroflot Soviet Airlines, the airline of the former Soviet Union, is the worlds largest airline For more than 50 S ! D years Aeroflot has been the focal point of Soviet and Russian civil aviation Before 1920 Russian air S ! D enthusiasts had experimented with aircraft development, and in 1920 and 1921, as the Russian Civil War drew to a close, small-scale experiments with air transport were made under both private and state initiative Flights to S ! D the Nizhni Novgorod fair, a traditional trade fair, engendered a more systematic approach toward aviation S ! D The Chief Administration of the Civil Air Fleet was s oon established, and one of its first acts was to develop in 1921 a joint venture with German interests to create theDeutsch-Russiche Luftverkehrs A G (Deruluft) Specializing in flights to the West, Derulufts regular S ! D S ! D S ! Dservices began from Königsberg in eastern Germany to Moscow on May Day, 1927 In its tenth year S ! Dof operation it had two main routes--from Berlin to Moscow and from Königsberg to Leningrad --and itcarried 3,600 passengers and 145 tons of post and goods S ! DSystemic domestic aviation developed at approximately the same time, with the state playing a moresignificant role In March 1923 the first Soviet airline, Dobrolet, was created as a joint state and S ! Dcommercially based organization and the first regular service was introduced in July 1923 fro mMoscow to Nizhni Novgorod The Russian people shared the Wests interest in aviation, and an BiZdoM : Companies History Part 1 S ! Dattempt was made to formalize this in March 1923 with the creation of a large public organization --the ODVF, or Friends of the Air Fleet, under the slogan "worki ng people build the air fleet " Aviation S ! Dcould be portrayed as an exciting diversion from the real difficulties of the New Economic Policy aswell as a potential source of future international conflict At the 13th Party Congress in May 1924 it S ! Dwas noted that "the rapid growth of military and civil aviation in capitalist countries makes itnecessary to strengthen and develop our own " S ! D@Team BiZdoM 14

BIZDOM : COMPANIES HISTORY PART 1 AOL Time Warner Inc S ! D Key Dates: 1903: The Warner brothers open their own movie theater in Newcastle, Pennsylvania S!D 1911: The Warners produce their first film, Perils of the Plains S!D 1915: Sam and Jack Warner move to Los Angeles, setting up film production studios, while Harry and Albert Warner set up Distribution Company in New York S!D 1923: Briton Hadden and Henry Robinson Luce publish the first issue of Time magazine S!D 1924: Hadden and Luce launch their second publication, the Saturday Review of Literature S!D 1925: Warner Bros acquires Vitagraph Studios in New York, launches Vitaphone joint S!D venture S!D 1927: Warner Bros release The Jazz Singer and revolutionizes film history by introducing S!D the "talkie " S!D 1929: Warner Bros acquires Stanley-Crandall movie theater network S!D 1930: Time Inc publishes the first issue of Fortune S!D S!D 1936: Company publishes the first issue of Life S!D 1949: Warner Bros is forced to sell off its movie theater network S!D S!D 1954: Company launches Sports Illustrated S!D 1961: Company forms Time-Life Books, a book publishing subsidiary S!D 1966: Jack Warner sells Warner Bros to Seven Arts S!D S!D 1969: Kinney National Services acquires Warner Bros (and renames itself Warner S!D Communications in 1971) S!D 1970: Ted Turner acquires first television station in Atlanta, forming future Turner Broadcasting System S!D 1972: Time ceases publication of Life; launches Home Box Office (HBO) cable TV network and Money magazine S!D 1974: Company publishes first issue of People S!D 1976: Turner renames his television station as Superstation TBS and begins supplying programming to cable television operators S!D 1980: Time launches Cinemax cable TV network; TBS launches CNN S!D 1985: Steve Case forms Quantum Computer Services, Inc to provide online service for S!D Commodore computer users S!D 1988: Quantum introduces an online service for owners of IBM computers S!D 1989: Quantum begins offering an online service for Apple computer users; introduces "America Online," a new nationwide network for computer owners S!D 1990: Time Inc acquires Warner Communications, forming Time Warner Inc S!D S!DBiZdoM : Companies History Part 1 | Cinema Pioneers The Warner brothers--Harry, the oldest, born in 1881, Albert, Jack, and Sam--were the sons of Polish-Jewish immigrants who settled in Youngstown, Ohio The Warners tried their hand at a variety S ! D of occupations, until Sam Warner discovered the Edison Kinetoscope and began working as a projectionist The Warners soon pooled their savings, some $1,000, to buy their own projector and S ! D launched their own traveling picture show--their first showing, in a mortuary, generated $300 in a single week S ! D Feedback at bizdomonline@gmail.com 15

By 1903, the Warners had opened their own theater in Newcastle, Pennsylvania, with the entire family chipping in, including baby Jack Warner who provided in-between show entertainment The following year, the Warners established S ! D their own distribution company, Duquesne Amusement & Supply Co , which was driven out of business in 1909 by the S ! D Edison Trust monopoly which was intent on stamping out patent infringements Instead, the Warners bought a newS ! D projector and once again went on the road As part of their S ! D new business, Sam and Jack Warner produced their first film, called Peril of the Plains, in 1911 S ! D In 1915, the brothers split up, with Sam and Jack Warner moving to California in order to make films--the weather therepermitted a year-round filmmaking schedule--while Harry and Albert opened an office in New York inorder to handle distribution Warner Bros first hit came in 1918 with the film My Four Years in S ! D S ! DGermany, which grossed $1 5 million and permitted the company to open its own studios in Los S ! D Angeles that year Warner Bros quickly released a stream of S ! D S ! D slapstick comedies; its first big star, however, was a dog--Rin Tin Tin--that appeared in a string of films in the 1920s S ! D Warner Bros made movie history in that decade In 1925, Sam S ! D S ! D Warner went east (leaving Jack Warner in charge of the production studios) The company had acquired Brooklyn-based S ! D Vitagraph Studios, and Sam Warner now formed a partnership with Western Electric & Telegraph, called Vitaphone, to work on means of synchronizing sound with film The invention was S ! D to lead to the release of The Jazz Singer in 1927, considered to be the first successful "talkie " Sam Warner died the night S ! D before the films showing Yet The Jazz Singer represented no S ! D mere success Instead, it revolutionized the film industry, S ! D ushering in a new era in entertainment S ! D Founding a Media Empire in the 1920s BiZdoM : Companies History Part 1 In the meantime, anothercompany was fast placing itsimprint on the U S media S ! D S ! Dmarkets Briton Hadden and S ! DHenry Luce met as students at theHotchkiss School in Connecticut,where Hadden served as editor-in- chief@Team BiZdoM 16

BIZDOM : COMPANIES HISTORY PART 1 at the school newspaper, while Luce held the same position for the schools Hotchkiss Literary Monthly Hadden and Luce became friends and enrolled in Yale University together, where they S ! D became chairman and editor, respectively, of the Yale Daily News While serving in the officers S ! D training school during World War I, Luce and Hadden came up with an idea for a new type of newspaper S ! D Luce and Hadden parted ways briefly, but by 1921 had come back together, now as reporters for the Baltimore News The pair returned to their idea for a new style of newspaper, and in 1922 S ! D resigned their positions, founding what was to become the Time Inc publishing empire By 1923, S ! D S ! D Hadden and Luce had succeeded in raising some $86,000, and the first issue of Time was launched in March of that year Hadden took the role of editor, while Luce became the magazines business S ! D manager Under their leadership, Time quickly established new journalistic standards, including a S ! D requirement that everything printed in the magazine be attributed to a sou rce S ! D By 1924, Time already boasted a paid subscriber base of 30,000 In that year, the pair launched a S ! D second magazine title, the Saturday Review of Literature The following year, the company moved its S ! D headquarters to Cleveland, Ohio, in a move to cut co sts In 1928, however, the company split its S ! D operations in two, with its printing handled by R R Donnelley in Chicago, and its editorial offices S ! D S ! D returned to New York City Meanwhile, under Haddens editorial direction the company launched a S ! D second title, Tide, geared toward the advertising industry, in 1927 S ! D Hadden died in 1929 at the age of 31, leaving Luce alone to handle the companys growing success S ! D Luce now took over sole leadership of the company, placing his imprint on the companys editorial direction The following year, after selling off Tide, Luce proposed a new magazine, to be called S ! D Fortune, catering specifically to the countrys business world Fortune enjoyed quick success, S ! D despite--or perhaps because of--the countrys plunge into the Depression Era S ! D Time made a tentative entry into radio, with its own "March of Time" show in 1931 Yet the S ! D company remained focused on its growing magazine empire In 1932, Luce, whose span of S ! D interests included architecture, led the company to acquire 75 perc ent of Architectural Forum, taking full control of the title the following year Over the course of the following S ! D decade, Luce transformed that magazine into an industry leader, boosting its circulation from 5,000 to more than 40,000 Nonetheless, the title remained a money-loser S ! D S ! DBiZdoM : Companies History Part 1 | Luces next foray came in 1936, with the launch of a new type of magazine based on photographic essays The new weekly title, called, simply enough, Life, debuted in November S ! D of that year and became an instant success Expensive to produce, Life lost money in its early S ! D years, despite its soaring circulation At the same time, the new title drained off a number of S ! D existing Time readers Nonetheless, Life turned its first profit in 1939--and, with the outbreak S ! D of World War II, began its glory years as arguably the United States most influential magazine By 1941, Life boasted a circulation of more than 3 3 million Time, meanwhile, S ! D S ! D S ! D had boosted its readership to nearly one million--including some 200,000 subscribers that transferred to the title after Time Inc acquired the Literary Digest in 1938 S ! D S ! D Feedback at bizdomonline@gmail.com 17

By then, Time had established a new corporate structure, with its three primary titles, Time, Life, andFortune, each becoming a separate division within the company, with their own publis hers, editors,and advertising directors Meanwhile, Luce stepped down from his position as president and CEO of S ! DTime Inc in order to concentrate on his role as editor-in-chief of the companys growing magazine S ! Dempire Roy Larsen, who had been chairman of the company, took over the president and CEO S ! Dpositions as well in 1939 Toward the end of the war years, a new generation of leaders began their S ! Drise in the company, including C D Jackson, who organized the companys international pool of S ! D S ! Dreporters; James A Linen, who took over as publisher and the editorial force behind Time; and S ! DEdward Thompson, who became managing editor of Life in 1949 Under this new generation, Time S ! DInc prepared to enter its glory days as one of the United States dominant publish ers S ! D S ! DComing of Age in the 1970sBy the 1950s, Warner Bros had emerged as one of the five major players in the U S film industry S ! D S ! D S ! D S ! DIn 1929, using the proceeds from The Jazz Singer, the company bought up the sprawling Burbank,California studios of First National Pictures That purchase gave the company room to expand S ! Dproduction--and became the site of a large swatch of filmmaking history The company was also S ! Denjoying its standing as co-owner of the Vitaphone patent, which had become required technology f orthe industry At the same time, Warner Bros shrewdly bought up the Stanley-Crandall movie theater S ! D S ! Dnetwork in 1929, giving its control of nearly 25 percent of the United States movie theater circuit bythe 1930s S ! DWarner Bros turned a profit of $14 million in 1929 By 1933, however, its losses, the product of S ! D S ! Dslouching audiences, had topped more than $100 million Yet Warner Bros was already entering a S ! D S ! Dnew era, with the arrival of the legendary Darryl Zanuck, originally hired as a writer for the Rin T inTin series, as the studios head of production Under Zanuck, Warner Bros turned to producing so- S ! D S ! Dcalled urban melodramas, including Little Caesar, which singlehandedly launched the gangster filmgenre and the career of acting great Edward G Robinson Warner Bros quickly discovered a number S ! D S ! D S ! Dof other stars in the 1930s, including James Cagney, who starred in 1931s Public Enemy Another S ! Dhit commodity for the studio was Errol Flynn, who brought The Adventures of Robin Hood to life At S ! Dthe same time, Warner Bros became known for its cartoon shorts featuring such characters as Bugs S ! DBunny, and for lighter musicals, including the Busby Berkeley series S ! D BiZdoM : Companies History Part 1While Warner Bros adopted the "factory" approach to filmmaking of its competitors, it nonetheless S ! Dcarved a reputation for itself as a maker of "films that mattered " By the 1940s, the studio had been S ! Dresponsible for the careers of such stars as Humphrey Bogart, Bette Davis, Lauren Bacall, Doris Day,and directing greats Frank Capra, John Huston, and Ernst Lub itsch By 1942, Warner Bros appeared S ! D S ! Dat its peak, with the release of the unequaled Casablanca S ! DThat film was also to represent the companys heyday, however The companys support for the U S S ! D S ! D S ! Dwar effort had resulted in a wash of mediocre, if highly pat riotic films In 1946, the government, S ! Dseeking to strike at the monopoly on the film industry held by the top film companies, passedlegislation requiring the studios to exit at least one of the three areas of operations in the industry,production, distribution, and exhibition In 1949, Warner Bros chose to sell off its theater network-- S ! D S ! Din the process shedding its guaranteed movie venues S ! D@Team BiZdoM 18

BIZDOM : COMPANIES HISTORY PART 1 The next hit to Warner Bros was the arrival of television Still led by production head Jack Warner S ! D S ! D and distribution head Harry Warner, the company turned its back on the new medium, except to sell off broadcasting rights to the companys film catalog at cut -rate prices Very quickly, the company S ! D found itself in nightly face-to-face competition with its own and greatest films S ! D With the end of the factory production system in the 1950s, Warner Bros appeared to be settling in S ! D for a slow fadeout Despite a few notable successes--such as the discovery of Marlon Brando and S ! D James Dean in the 1950s, and the 1960s successes of Whos Afraid of Virginia Woolf?, the Jack Warner-produced Oscar Winner My Fair Lady, and the Arthur Penn masterpiece Bonnie and Clyde -- the Warner Bros era seemed at an end Harry Warner had died in 1958, and Albert Warner, in S ! D S ! D 1967 By then, Jack Warner had sold the company to Seven Arts Production Ltd for $32 million He S ! D S ! D S ! D died in 1978 S ! D Renamed Warner Brothers-Seven Arts, the company under its new owners became more interested in the money to be made by selling broadcasting rights to the Warner Bros film library, rather than in S ! D making new movies Instead, Warner Brothers branched out in 1969, paying $17 million for Atlantic S ! D Records, which had been founded by Ahmet Ertegun in the 1950s, pioneering the rhythm and blues market, and which had become one of the industrys seminal record companies Atlantic soon began S ! D building its own stable of labels, adding another industry pioneer, Elektra Records, in 1970 S ! D By then, Warner Brothers was being brought back to life In 1969, the company was acquired by S ! D Kinney National Services, a diversified conglomerate built up by Steven Ross in the 1950s and 1960s Ross quickly divested most of Kinneys operations, retaining its media holdings, which were S ! D renamed Warner Communications in 1971 S ! D Warner claimed new success over the next decade Its movie production studios quickly began S ! D turning out hits, including Woodstock, All the Presidents Men, and The Exorcist By the end of the S ! D decade the company string of successes included Superman and the Clint Eastwood vehicle Every Which Way But Loose The companys music businesses were also growing strongly, especially with S ! D the rise in prominence of FM radio Warner Communications also diversified into the wider media S ! D market, acquiring holdings in the nascent cable television marke t, publishing operations, a magazine distribution business, and, in 1976, video game producer Atari, for which it paid just $26 million By S ! D 1980, Warner Communications had seen its revenues soar to $2 billion S ! D Throughout this period, Time Inc itself was emerging into a media powerhouse In 1954, the S ! D S ! D company had a new success when it launched Sports Illustrated, a pioneer in the relatively young professional sports market Although that title remained unprofitable for some time, it continued to S ! D grow, later becoming one of the companys most important magazine franchisesBiZdoM : Companies History Part 1 | S ! D Time had also begun to diversify by the 1950s, adding book publishing to its successful magazine publishing holdings In 1952, it established subsidiary Time-Life Broadcast, which acquired a 50 S ! D percent stake in the KOB radio and television stations in Albuquerque, New Mexico The company S ! D bought majority control of Intermountain Broadcasting Television Corporation in Utah, then, in 1954, bought full control of Colorados KLZ radio and television stations Times broadcast stable grew to S ! D include the acquisition of a group of stations held by Bitner, for $16 million, giving it a presence in Michigan, Indiana, and Minnesota By the end of the decade, the company sold off its stakes in Utah S ! D and Minneapolis, and instead bought up stations in San Diego and Bakersfield, California S ! D Feedback at bizdomonline@gmail.com 19

Times magazine empire, and especially Life, faced new competition in the 1960s from titlesincluding Look and The Saturday Evening Post Although these titles quickly faded, Time, which had S ! Dseen its production costs soar, while both circulation and advertising revenues dwindled, was forcedto pull the plug on Life, which had once again slipped into losses After losing more than $30 million, S ! DLife ceased publication in 1972 Instead, that year, Time launched a new title, Money, to capture the S ! Dgrowing consumer interest in personal finance Two years later, the company produced a new S ! Dsuccess, the extremely popular People magazine In the meantime, Times diversification had taken S ! Dit beyond publishing and media, into paper production, through the East Texas Pulp and PaperCompany joint venture with Houston Oil Company, and the $128 million merger -acquisition ofTemple Industries, a maker of lumber and other wood products, in 1 973 S ! DInstead, Time turned its focus on a young and hot property --HBO At the beginning of the 1970s, S ! DTime had sold off its broadcasting operations with the intention of concentrating its interests in thenewly developing cable television industry The company formed its own pay-TV service, Home Box S ! DOffice, through a subsidiary, under the direction of J Richard Munro--who later became company S ! Dchairman and CEO HBO began broadcasting in 1972, in Wilkes-Barre, Pennsylvania, with an initial S ! Dsubscriber base of just 365 By the beginning of the 1980s, HBO had established itself as one of the S ! Dlargest and most successful pay-TV stations In 1980, Time had a new cable television hit with the S ! Dlaunch of Cinemax By then, too, Time had gained a majority stake in Ameri can Television and S ! DCommunications Corporation, one of the countrys largest cable television systems S ! DTime continued growing strongly through the 1980s, boosting its publishing wing with the purchase ofScott Foresman in 1985, and adding a number of new magazine titles, including Progressive Farmer,with the 1985 purchase of Southern Progress Corp By 1988, the company published 24 magazines S ! D S ! DThe following year, it reached an agreement to merge with Warner Communications, creating theworlds largest media company S ! DPioneering the Online Market in the 1980sAOLs origins lay in the nascent online community of the early 1980s Although Compuserve had S ! Dlaunched an online service targeting business customers in the late 1960s, the first consumer -oriented system, called The Source, began in 1978 An early user was Steve Case, who signed on in S ! D1982 Case went to work for another company, Control Video Corporation (CVC), which began work S ! D BiZdoM : Companies History Part 1on a system to connect Atari and Commodore users online and deliver video gam e content That S ! Dsystem failed to attract interest, however S ! DInstead, Case, and partners Marc Seriff and Jim Kimsey, convinced Commodore to launch its ownonline service CVC changed its name to Quantum Computers Services and in 1985 debuted Q -link, S ! Dwhich enabled users to download software, access information, play games, and, importantly, chatonline By 1986, Q-link had attracted some 10,000 users Quantum quickly sought to extend its S ! D S ! Dtechnology to other computer platforms, forming a similar service, Appl elink, in partnership withApple Computers, in 1987, and, in 1988, entering the PC market with PC -link Apples displeasure at S ! Dthis latest development led the companies to part ways --Apple paid Quantum $2 5 million to give up S ! Dtheir license to the Apple logo Faced with the need to find a new name for their service, Case and S ! Dpartners decided on America Online S ! D@Team BiZdoM 20

BIZDOM : COMPANIES HISTORY PART 1 The new America Online debuted in 1989--featuring a number of voice messages (such as "Youve Got Mail" and "Welcome") that were to play an important part in the services success At first S ! D dedicated to the Apple computer community (which featured sound; the majority of PCs remained mute at the end of the 1980s), Quantum began work on a PC version of their service Yet the S ! D company nearly sold itself to Compuserve, which had offered $50 million for Quantum in 1991 S ! D Instead, AOL launched the first DOS version of America Online in February of that year By the end S ! D of the year, the company had changed its name to America Online Inc S ! D America Online was not the only online service--Compuserve and Prodigy, backed by Sears and IBM, had both grown strongly--but it was the fastest growing Until 1994, these services represented theS ! D quickest way for the average consumer to get online, yet confined the user to the services own proprietary network By then, however, the Internet was coming of age for consumer use, backed by S ! D new graphics technology enabling what became known as the World Wide Web A new breed of S ! D Internet Service Providers came into being, offering un limited access to the Internet at fixed rates In S ! D response, AOL was forced to change its own pricing policy The company also began offering access S ! D to the Internet through its own network S ! D At the same time, the company launched a number of initiatives as part of its "AOL Anywhere" program designed to place the company into a variety of new markets, including handheld devices and mobile telephones As part of that effort the company formed alliances with the AT&T and S ! D Japans mobile phone leader NTT DoCoMo Then in December 2000, it acquired Tegic S ! D Communications, a maker of software for the wireless market In the meantime, the company also S ! D attempted to crack the television market, launching the interactive television service, AOLTV Yet S ! D AOLTV stumbled from the outset S ! D AT&T Bell Laboratories, Inc S ! D AT&T Bell Laboratories is the research and development arm of AT&T Bell Labs designs and develops all the systems and S ! D services required by its parent company, conducts experiments for application to AT&Ts manufacturing facilities, and provides the technological foundation for the companys future Much of S ! D modern society as we know it, with its emphasis and dependence on technological innovation, has been formed within the research facilities of Bell Labs The organizations S ! D renowned scientists have created such innovations as solar cells, lasers, transistors, cellular mobile radios, long -distanceBiZdoM : Companies History Part 1 | television transmission, stereo recording, communications satellites, and sound motion pictures The Nobel Prize in S ! D physics has been awarded to seven scientists at Bell Labs S ! D Since its founding, the facility has received an average of one patent a day Entering the mid-1990s, Bell Labs had claims to S ! D more then 25,000 total patents S ! D One of the most influential private research laboratories in the entire world, AT&T Bell Laboratories was established in 1925 The process of centralizing research and development operations with S ! D Feedback at bizdomonline@gmail.com 21

AT&T started in 1907 when AT&T merged its engineering department with the engineeringdepartment of Western Electric Company S ! DBell Labs was formed in an effort to combine the resources and talent of various researchlaboratories into a single operation At the beginning of its existence, Bell Labs employed 4,000 S ! Dindividuals, many of whom were reputable engineers, physicists, chemists, metallurgists, andmathematicians from the United States and Europe This technical staff conducted some of the S ! Dinitial--and famous--experiments in the burgeoning fields of electronics, magnetics, and radio S ! DFreedom to pursue research in various areas, including those outside the telecommunications field,was encouraged and rewarded Frank B Jewitt, the first president of Bell Labs, knew that applied S ! D S ! Dand fundamental research would ultimately benefit AT&Ts telephone business S ! DIn 1927 Bell Labs scientist Clinton Davisson conducted an experiment during which he bombarded asmall crystal of nickel with electrons The dispersement of the electrons in waves as they bounced off S ! Dthe nickel corresponded to their momentum Davissons documentation of this research provided the S ! Dinitial experimental proof that electrons display wave characteristics Ten years later, Davisson S ! Dreceived the Nobel Prize in Physics for his work in the field of electron wave characteristics S ! DThe year 1927 also marked Harold S Blacks first experiments in the field of negative feedback S ! Dcircuitry Black eventually proved the principles that gave rise to the negative feedback amplifier, one S ! Dof the most important discoveries in the communications field The practical application of these S ! Dprinciples resulted in the design and success of long-distance multichannel systems Taking this S ! Dresearch one step further, H W Bode investigated the problems of distortion and noise interference, S ! D S ! Dwhich were the consequences of using amplifiers for long-distance telephone communication Through S ! Dintensive mathematical analysis, Bode discovered a way to eliminate the noise and distortions,thereby improving the quality of transcontinental telephone communication S ! D BiZdoM : Companies History Part 1Bell Labs was contacted by the U S Navy in 1937 to develop research already initiated in the S ! D S ! Demerging field of radar technology Between 1934 and 1937, the Naval Research Laboratory and the S ! DU S Army Signal Corps had conducted experiments in the field of radio detection a nd ranging device S ! D S ! D S ! DBell Labs involvement in the project proved worthwhile In 1939 the facility demonstrated to U S S ! D S ! D S ! Dfederal government and Navy officials a model radar instrument that accurately plotted the course ofships between New York and New Jersey Impressed with the accuracy and reliability of the new S ! Dtechnology, the government awarded numerous contracts to the research facility According to the S ! Darrangement, Bell Laboratories designed the radar and Western Electric Laboratories manufactured@Team BiZdoM 22

BIZDOM : COMPANIES HISTORY PART 1 the final equipment By the time America entered World War II in December of 1941, the S ! D development of radar technology had become the single largest activity engaged in by Bell Labs S ! D During the war, scientists at Bell Labs designed over 100 different kinds of r adar equipment, including submarine radar, fire control radar for large guns on Navy vessels, and bombing radar for the United States Air Force S ! D In 1942 Bell Labs engaged in one of its most secret projects --the design and manufacture of a successful acoustic homing torpedo The homing torpedo was dropped in the vicinity of a hostile S ! D submarine from an aircraft When the torpedo entered the water, it was electrically propelled by an S ! D acoustical design system that focused on the propulsion mechanisms of the su bmarine The torpedo S ! D was designed to pursue the propulsion mechanism and then explode upon impact with the vessel S ! D According to U S Navy statistics, approximately 55 enemy submarines were rendered inoperable by S ! D S ! D the homing torpedo model S ! D In 1943 Bell Labs designed the famous echo-ranging sonar device Developed to detect underwater S ! D objects, the device emitted a pulse of sound waves that registered an echo from underwater objects S ! D This echo was then transformed back into a pulse that helped U S vessels locate the actual position S ! D S ! D of the object Initially intended for use on anti-submarine patrol boats, the technology worked so well S ! D that it was soon used by larger ships in the U S Navy S ! D S ! D S ! D After the end of World War II, Bell Labs resumed its research on semico nduction and other projects that had been interrupted by the war effort The first experiments on semiconduction were S ! D performed in England during the 1930s, and scientists at Bell Labs expanded upon these investigations Included in the research team, among others, were William Shockley, John Bardeen, S ! D and Walter Brittain The combined research of the team led to the discovery of the "transistor S ! D effect," and the origin of the point-contact transistor This transistor would become an essential S ! D component to the radio, television, and computer industries Shockley, Bardeen, and Brittain received S ! D the 1956 Nobel Prize in Physics in recognition of their research, which ushered in the beginning of the microelectronic age S ! DBiZdoM : Companies History Part 1 | In 1951 William G Pfann discovered a technique for purifying germanium This ultrapurifying S ! D S ! D method, known as "zone refining," solved the inherent problem of melting materials such as germanium and silicon at extremely high temperatures Pfanns method brought the purity of S ! D materials under control to the extent that it could then be applied to manufacturing semiconductors S ! D During the latter half of the 1950s, two scientists at Bell Labs, C H Townes and A L Schawlow, S ! D S ! D S ! D S ! D collaborated on experiments that ultimately led to the discovery of the laser (lig ht amplification by stimulated emission of radiation) and its principles Later, additional research in this field led to the S ! D invention of the first helium-neon laser and the first continuous wave solid-state laser S ! D Feedback at bizdomonline@gmail.com 23

Bell Labs scientists were involved in three major technological developments during the 1960s:electronic switching, satellite communications, and computer operating systems Before the war, the S ! Dresearch laboratory made significant advances in discovering what implications electronic technologyhad for telephone switching capabilities In 1953 a research group was given the task of designing S ! Dan electronic switching system By 1963 AT&T had installed the first such switching system in Cocoa S ! DBeach, Florida In 1965 AT&T used this technology to install the first commercial office switching S ! Dsystem in Succasunna, New Jersey S ! DThe facility was also a leader in investigating satellite communication technology John R Pierce, a S ! D S ! Dresearcher at Bell Labs, had conducted investigations for years on how to re flect voice signals from acommunication satellite In 1960 his theories were confirmed when voice signals were reflected off a S ! D"passive balloon satellite " Two years later, the worlds first speech and television transmissions were S ! Dsuccessfully achieved through a communications satellite named Telstar I In 1963 a second satellite, S ! DTelstar II, was launched into orbit around the earth The research conducted on this project, and its S ! Dapplication, had enormous consequences for world communications By 1970, less than a decade S ! Dlater, satellite communications systems provided more than 50 percent of all the voice channelsbetween the United States and foreign countries S ! DThe third major technological development to originate at Bell Labs during this time had to do withcomputer operating systems Many researchers were unsatisfied with the performance of the S ! Doperating system on their computers at the lab They felt that a new system that could run on any S ! Dtype or brand of computer would be more useful to them Consequently, scientists designed an S ! Doperating system that was "open"; a system that could be used by many different computer brandsand could also interconnect with other operating systems This operating system, called UNIX, was S ! Dfirst used on a limited basis within AT&T offices and facilities, and among universities and colleges S ! DBefore long, however, AT&T realized the vast market potential of the system By 1989 UNIX was S ! D BiZdoM : Companies History Part 1the standard operating system in almost all computers purchased within the United States S ! DFor Bell Labs, the decade of the 1970s was most notable for the awards won by its scientists In S ! D1973 John W Tukey was awarded the National Medal of Science for his work in mathematics and S ! Dtheoretical statistics In 1978 Philip W Anderson and another scientist received the Nobel Prize in S ! D S ! Dphysics for their research into the electronic structure of magnetic and glass materials Robert W S ! D S ! DWilson and Arno A Penzias were awarded the Nobel Prize in physics for discovering the almost S ! Dindiscernible radiation that remained from the "big bang" explosion Their research provided further S ! D@Team BiZdoM 24

BIZDOM : COMPANIES HISTORY PART 1 evidence in support of the "big bang" theory, which postulated that a cosmic explosion billions of years ago gave birth to the universe S ! D The single most important event that affected Bell Labs was the breakup of the Bell System in January 1984 The immediate change involved a reduction of the number of employees from 26,000 S ! D down to 19,000 Former Bell Lab employees were transferred to Bell Communications Research S ! D (Bellcore) and AT&T Information Systems But the long-term change was more significant, for the S ! D mission of Bell Labs was altered after the breakup Prior to the divestiture, research and S ! D development at the facility focused on the design and improvement of equipment and serv ices in the telecommunications field Scientists at Bell Labs had been able to choose their own research projects S ! D based on their own interests From the time of the divestiture, however, management at AT&T S ! D reorganized Bell Labs in order to reflect the parent companys new focus as a leader in the information age Instead of concentrating on comprehensive telephone service, Bell Labs new mission S ! D was to develop information systems and services and help AT&T reduce the time between product design and market introduction S ! D The technology that is called photonics involves the use of high -frequency, rapid pulses of light from lasers in order to digitally transmit voice, video, or data over tiny glass fibers Fiber optic systems S ! D designed by scientists at Bell Labs have been used in the United States and incorporated into the intercontinental communications systems under the Atlantic and Pacific Oceans In 1994 a scientific S ! D experiment conducted at Bell Labs resulted in the transmission of 40 billion bits of data per second over one optical fiber This transmission rate was 10 times the rate of the largest capacity system in S ! D commercial use at the time S ! D The third field of research and development that scientists at Bell Labs focused on in the early 1990s involved software systems Bell Labs has designed software systems that enable the components S ! D within the U S telecommunications network to operate smoothly and efficiently Over 3,000 S ! D S ! D S ! D telephone switching systems across America rely on Bell Labs software In addition, the UNIX S ! D operating system developed at the research facility has grown into one of the most popular systems in the world Scientists at Bell Labs continue to work on highly experimental projects that could have S ! D an enormous impact on the future of telecommunications These projects include intelligence S ! DBiZdoM : Companies History Part 1 | machines, machines that operate on voice commands, microelectronic chips with a ten -thousandfold increase in capacity and intelligence, and an affordable global communications system that allows an individual to send or receive information without any technical constraints S ! D In September 1995, AT&T announced its break up into three separate companies: communications equipment and technology, computer, and communications services This effected Bell Labs as well S ! D S ! D Most of the 26,000 Bell Lab employees became part of the communications equipment and technology business, retaining the Bell Laboratories name Bell Laboratories also serviced the S ! D computer business About 15 percent of the employees became part of the c ommunications services S ! D and assumed the name AT&T Laboratories S ! D Feedback at bizdomonline@gmail.com 25

As Bell Laboratories and AT&T raced toward the 21st century, chief scientist, Dr Arno Penzias, was S ! Dquoted in the New York Times as saying, "The large-scale mission is still research for fun and profit " S ! D BiZdoM : Companies History Part 1@Team BiZdoM 26

BIZDOM : COMPANIES HISTORY PART 1 AXA The first company in the history of AXA was created in 1817 This company was S ! D responsible for the two main characteristics of the group before the 1970s: its location in Normandy and its legal status as a mutual company Jacques- S ! D Théodore le Carpentier, with 17 other property owners, established the Compagnie dassurances Mutuelles contre lincendie dans les départements de la Seine et de lEure, a fire insurance company situated at Rouen In the companys S ! D legal documents it was stated that every shareholder was to be both insurer and insured party for five years, this being the basic principle of mutuality, where the insured parties own the company On the properties insured was a plaque bearing the letters P A C L S ! D S ! D S ! D S ! D S ! D (propriéte assurée contre lincendie), indicating that they were insured against fire loss The first S ! D damage for which the company had to pay occurred in 1819, amounting to FFr7 5 Realizing the S ! D S ! D impossibility of sharing this cost among 1,264 shareholders, the company invented the reserve fund S ! D Soon afterwards in 1822, the famous fire of Rouen Cathedral required shareholders to pay for a more important claim, an event not easily forgotten S ! D In 1852 a major quarrel occurred between insurance companies and the French government S ! D Concerned about the dangers associated with the recent invention of the match, insurers tried for more than 20 years to have its production restricted or even forbidden The government held on, and S ! D eventually established a state monopoly for the making and s elling of matches In the meantime the S ! D board made two decisions They would extend activities to cover the whole of France, and the S ! D Mutualité Mobili&egave; would now also cover real estate risks In 1881, Mutualité Immobili&egave; S ! D and Mutualité Mobili&egave;re merged under the name of Ancienne Mutuelle, which it retained until 1977 At this time the new chairman, M Masselin, decided to offer life insurance In this way S ! D S ! D S ! D Mutuelle Vie life insurance company was born S ! D The beginning of the 20th century and World War I did not bring any great change for Ancienne Mutuelle (AM) After moving offices in Rouen in 1902, the first important step was undertaken just S ! D after the war when in 1922 Anciennes Mutuelles Accidents, an automobile insurance branch was established It developed quickly and was to make a major contribution to the companys profits S ! D S ! D In World War II, the company did not escape so lightly In April 1944 its new offices were bombed S ! D by U S forces; this loss was followed by the death of Gaston de Payennev ille, chairman since 1913 S ! D S ! D S ! D AM emerged from the war in poor shape generally, although the accident and life divisions were lessBiZdoM : Companies History Part 1 | severely afflicted Soon the necessity of a tighter group structure became apparent This change was S ! D S ! D accomplished in 1946 with the constitution of the Groupe Ancienne Mutuelle under the leadership of André Sahut dIzarn In 1948 the Groupe was thriving once more, proving the validity of its motto: "E S ! D cinere suo re divide"--"rising again from its ashes " From the mid-1940s until the 1970s the Groupe S ! D experienced steady though unspectacular growth achieved by a succession of mergers with other insurance mutual companies S ! D Feedback at bizdomonline@gmail.com 27

Acer Inc S ! DCalled "the regions most impressive technology company" in a 1996 article in The Economist, AcerInc is Taiwans leading exporter and the worlds seventh-largest personal computer brand The S ! D S ! Dcompany also ranks among the worlds ten biggest manufacturers of individual components likekeyboards, monitors, and CD-ROM drives, and is Americas ninth-largest personal computerproducer S ! DAcers founder was born Shih Chen Jung in 1945 A shy youth, Shih blossomed at National Chiao S ! DTung University, where his natural math aptitude helped him graduate at the top of his class Shih, S ! Dwho later westernized his given name to Stan, earned a masters degree in 1972 and went to workas a design engineer at Qualitron Industrial Corp It was not long, however, before the S ! Dentrepreneurial bug bit Shih; in 1976, he and several friends founded Multitech International with a$25,000 initial investment The new firm started by designing hand-held electronic games, then S ! Dexpanded into the distribution of imported semiconductors Shih renamed his company Acer Inc in S ! D S ! D1981 The name was derived from the Latin word for acute or sharp S ! D S ! DThe company enjoyed its first international success that year with the launch of MicroProfessor, ateaching tool The company began manufacturing PC clones--computers and components that were S ! Dsold to larger companies with strong brand names--in 1983 Acer diversified vertically in the late S ! D1980s, soon becoming "one of the most vertically integrated microcomputer manufacturers in theworld," according to Los Angeles Business Journal S ! DIn 1995, Fortunes Louis Kraar called Stan Shih "a fascinating combination of e ngineering nerd,traditional Chinese businessman, avant-garde manager, and international entrepreneur, with anoutsize ambition and vision to match " The young CEO applied all of these talents to his young S ! Denterprise In stark contrast to the micromanagement, nepotism, and profit-taking typical of S ! DTaiwanese companies, Shih established a modern, progressive corporate culture Although Shihs S ! Dwife, Carolyn Yeh, served as the companys first bookkeeper, the founder vowed that his threechildren would have to look for jobs elsewhere Time clocks were anathema, even in production S ! D BiZdoM : Companies History Part 1plants In 1984 he established Taiwans first stock incentive program Within four years, 3,000 of S ! D S ! DAcers employees were also stockholders S ! DIn 1981, Acer hinted at a sweeping change in strategy with the establishment of Third WavePublishing Corp The term "third wave" referred to the most recent phase of the history of Taiwans S ! Dcomputer industry: the first was characterized by trademark and patent piracy, the second byclonemaking, and the third by technological innovation Instead of simply churning out other S ! Dcompanies designs, Acer began to set itself apart from most of its Taiwanese competitors by doingits own research and development For example, the company developed one of the worlds first S ! D@Team BiZdoM 28

BIZDOM : COMPANIES HISTORY PART 1 Chinese language computer systems In 1986, Acer was second only to Compaq to introduce a 32 -bit S ! D PC with an Intel 386 microprocessor S ! D Early 1990s Setbacks The late 1980s brought internal and external changes that had a devastating effect on A cer The S ! D internal problems were completely unexpected In 1989, Shih hired Leonard Liu away from a 20-year S ! D career with International Business Machines Corp (IBM), making him president of the Acer group S ! D and chairman and chief executive officer of Acer Amer ica Corp Described in an October 1995 S ! D Fortune article as "a cerebral Ph D in computer science from Princeton," Liu had previously been the S ! D S ! D "highest-ranking Chinese American executive" at IBM Lius managerial style reflected his experience S ! D at "Big Blue": in contrast with Shihs traditionally progressive corporate culture, Liu tried to centralize control of Acer His off-putting approach has been blamed for a management exodus in the early S ! D 1990s S ! D At the same time, the computer industry quickly matured, shi fting from a high profit margin business to a low margin commodity practically overnight Price wars pushed component prices down so S ! D rapidly, and a strong New Taiwan dollar made the countrys goods so expensive, that it became difficult to make a profit on the finished product S ! D New Methods Pace Mid-1990s Turnaround In a 1995 Financial World article, Shih compared Taiwanese computer manufacturing to Chinese restaurants, saying that "Chinese food is good, and it is everywhere, but it has no uniform global image or consistent quality " The same was true of personal computers; although most were made in S ! D Taiwan, they were sold under several (primarily American and Japanese) brands, with varying levels of quality Shih wanted Acer to be more like McDonalds, the quintessential fast food restaurant that S ! D boasted a strong brand image and strict quality standards S ! DBiZdoM : Companies History Part 1 | This unique paradigm shift required a complete overhaul of Acers production and distribution scheme Instead of assembling computers in Taiwan, as it had done for more than a decade, the S ! D company began to ship components to 32 locations around the world for assembly Shih compared S ! D computer components like casings, keyboards, and mice to staples like ketchup and mustard that could be shipped slowly and stored indefinitely He likened the motherboard, which had to have the S ! D "freshest" technology possible, to the meat in a sandwich It was shipped by air from Taiwan to each S ! D assembly operation And finally, Shih compared the CPU and hard drive to "very expensive cheese: S ! D we try to source them locally " Shihs adoption of this unique strategy earned him the nickname "the S ! D Ray Kroc of the PC business " S ! D Feedback at bizdomonline@gmail.com 29

This production scheme saved on shipping costs and enabled Acer to include the most up -to-date(Shih liked to call it the "freshest") technology available In Acer-speak, "fresh" meant innovative Not S ! D S ! Dcontent to rely on low-end knockoffs of other companies technology, Acer stayed abreast of theindustrys latest developments In 1992, it launched a multi-user UNIX system as well as 386- and S ! D4865x-based PCs That year also saw the introduction of an international service and support S ! Dnetwork, a vital element of any successful PC business in the 1990s In 1993, Acer unveiled a new S ! DPC that came equipped with a RISC (reduced instruction-set computing) chip and Microsoft Corp s S ! Dmost recent version of the Windows operating system Shih hoped to bring the "fast food" concept all S ! Dthe way to the retail level, so that customers could custom -order computers with peripherals andmemory capacity specifically suited to their needs Acer tested this concept at a company-owned S ! Dretail store in Taipei It seemed to be as close as Acer could come to McDonalds -style service: only S ! Dtwo hours passed from the time a system was ordered to the ti me it was booted S ! DStrategies for the Mid-1990s and BeyondIn the mid-1990s, Acer began to globalize production as well as assembly, building a keyboard andmonitor plant in Malaysia in 1994 The company planned a motherboard and CD-ROM factory for S ! Dthe Philippines and hoped to set up production in Argentina, Chile, Thailand, Dubai, South Africa,Brazil, India, the Peoples Republic of China, and the former Soviet Union In 1994, Shih unveiled a S ! Dplan to "deconstruct" Acer into 21 publicly traded business uni ts by the end of the 20th century S ! DAcer Inc would continue to own anywhere from 19 percent to 40 percent of the firms stock, but S ! DShih hoped that their independent status would enable the individual units to compete moreeffectively by facilitating entrepreneurship, inspiring research and development, and allowing forcorporate fundraising through stock and bond offerings Michael Zimmerman of PC Week speculated S ! Don another possible motivation behind the plan, known internally as "21 -in-21 " His June 1994 piece S ! Don Acer noted that "Separating the divisions will also clear a path for Shih to retire and, as oneobserver said, to leave his legacy intact by not risking the future of his brainchild to a successor " In S ! Dfact, Shih told PC Week that he "expects to withdraw from Acer and the workforce" by 1999 S ! D BiZdoM : Companies History Part 1@Team BiZdoM 30

BIZDOM : COMPANIES HISTORY PART 1 Aer Lingus Group plc On April 11, 1928, Major James Fitzmaurice, Officer Commanding the Air Corps, had made the first aerial east-west crossing of the Atlantic with Hermann Koehl and Günther Freiherr von Hünefeld, leaving Baldonnel, county Dublin in a Junkers W33 In spite of the S ! D celebrity he achieved, Fitzmaurice was unable to persuade the Irish government to start a national airline, probably because the venture would have likely lost money at first Nevertheless, in the next few years S ! D a number of air companies sprang up, at least on paper, eager to supply transatlantic air service to the Emerald Isle Richard F OConnor, County Cork S ! D S ! D Surveyor, originally proposed the name Aer Lingus Éireann His prospectus noted that Bulgaria was the S ! D only other European country that had not yet started its own airline Interestingly, Ireland was also S ! D the only country which allowed civil aircraft to fly into all its military airfields S ! D When the illustrious British aviator Sir Alan Cobham pulled out of a prospective cross -channel venture with the Irish government, Captain Gordon Olley was left as the governments partner The S ! D new company, then referred to as Irish Sea Airways, was based at 39 Upper OConnell Street in Dublin It had just a handful of staff The airfield, in somewhat remote Baldonnel, doubled as a S ! D S ! D sheep pasture The airline was formally incorporated on May 22, 1936, as Aer Lingus Teoranta, a S ! D corruption of the Gaelic for Air Fleet (Loingeas) Limited At the same time, Aer Rianta was S ! D established as a holding company for diverse national aviation interests including Aer Lingus itself S ! D The companys first plane, a twin-engined de Havilland DH-84 Dragon, was dubbed Iolar, Irish for eagle Transferred from Olley Air Services, it had cost £2,900 new Its first Aer Lingus flight, S ! D S ! D carrying five passengers, was from Baldonnel near Dublin to Bristol on May 27 However, the maiden S ! D voyage of the luxury liner Queen Mary stole any hope of press coverage that day S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 31

Aiwa Co , Ltd S ! D S ! DAiwa has somewhat obscure beginnings The company was founded in June 1951 as AIKO Denki S ! DSangyo Co , Ltd , a maker of microphones In June 1958 the companys stock was registered for S ! D S ! D S ! Dover-the-counter trade It changed its name to Aiwa Co , Ltd in October 1959 The following year S ! D S ! D S ! D S ! Dsaw the opening of a factory in Utsunomiya, a town located about 60 miles north of Tokyo Its stock S ! Dwas listed in the second section of the Tokyo Stock Exchange in October 1961 A key development S ! Dcame in February 1964 when Aiwa introduced the first Japanese cassette tape recorder, the TP -707 S ! DCassette recorders, players, and decks became the companys core product area, and remained sothrough the late 1970s In February 1967 Aiwa established another factory in Iwate Two years later S ! D S ! DSony Corporation purchased a majority interest in Aiwa, which became an affiliated company ofSony Aiwa nevertheless continued to operate in a largely independent fashion, and its stock S ! Dremained publicly traded S ! DLate 1980s Recovery from N ear BankruptcyIn 1981 Aiwa entered the video area for the first time, when it began production of videocassetterecorders in Japan Unfortunately, following the lead of its parent, Aiwa adopted the Sony Betamax S ! Dformat Although introduced a year earlier, the Betamax lost out to the VHS format in a battle to S ! Ddetermine which would be the industry standard Compounding Aiwas difficulties were intense S ! Ddomestic competition and an extremely strong yen, the latter of which made products produced inJapan more expensive in export markets For the year ending in November 1986, Aiwa was in the S ! Dred for the first time in eight years, posting a pretax loss of ¥5 17 billion on sales of ¥57 4 billion, S ! D S ! Dforcing it to forego its dividend for the first time in 14 years Aiwa was teetering on the verge of S ! Dbankruptcy Even its pioneering introduction of the first digital audio tape (DAT) system in March S ! D1987 held little promise Although DAT was initially seen as a threat to the booming CD industry S ! Dbecause users could record--not just play--on DAT systems, the technology never really caught on S ! DHelping to pull Aiwa out of this tailspin was Hajimi Unoki, who was brought in from Sony to becomethe companys new deputy president Unoki helped initiate a number of restructuring efforts Hoping S ! D S ! D BiZdoM : Companies History Part 1to achieve ¥2 5 billion in annual savings, Aiwa slashed its workforce through voluntary retirements S ! Dfrom a high of 3,100 in 1985 to 1,300 by 1988 The company also consolidated its head office S ! Dfacilities, which had been spread among four differ ent locales in Tokyo In addition, it integrated S ! Dthree of its domestic manufacturing plants, with the Utsunomiya South plant converted to atechnology center in early 1989 S ! D@Team BiZdoM 32

BiZdoM : Companies History Part 1 | BIZDOM : COMPANIES HISTORY PART 1 Feedback at bizdomonline@gmail.com 33

Akamai Technologies, Inc S ! DOriginally developed by the U S military, the Internet was little more than a collection of linked S ! D S ! Dcomputers before Dr Tim Berners-Lee, a British computer scientist, invented a software program in S ! D1989 called the World Wide Web, which provided easy access to the quickly accumulating resourcesof the Internet The program supplied an address (universal resource locator, or URL) to documents, S ! Dwhich were encoded with hypertext markup language (HTML), and linked for easy retrieval byhypertext transfer protocol (HTTP) Coupled with a graphic interface, Mosaic, which became the S ! Dbackbone of web browsers, the Internet enjoyed explosive growth in the 1990s Berners-Lee joined S ! Dthe faculty of the Massachusetts Institute of Technology (MIT) in 1994, heading the W3 Consortiumfor the Laboratory for Computer Science, very much devoted to making sure the Web developed intothe universal tool he envisioned it to be But by 1995 he became concerned that traffic problems S ! Dcould have a deleterious effect on the growth of the Web, in particular the "hot spot" or "flashcrowd" phenomenon, when large numbers of web users try to access the same site at the same time,leading to a bottleneck that would not only bring down a site but create a domino effect, with thenetwork around the site becoming a casualty Moreover, the future of the Internet was jeopardized S ! Dbecause of a general lack of speed, leading wags to call the Internet the "World Wide Wait " In S ! D1995 Berners-Lee issued a challenge to his MIT colleagues to improve the way in which Internetcontent was delivered S ! DAmong the people who accepted the challenge was Tom Leighton, a professor of AppliedMathematics, who headed the Algorithms Group at MITs Laboratory for Computer Science Although S ! Dinitially regarded as an academic exercise, the task of speeding up the Internet offere d MIT mathstudents a chance to work on a problem with a real-world application Over the next two years, S ! DLeighton, his colleagues, and graduate students worked with little sense of urgency, since no one atthe time gave any thought to building a company around the results of their research Among the S ! Dgraduate students who used this work as a basis for their theses was Daniel Lewin, who devised keyalgorithms that would become part of a system that efficiently routed Internet traffic, achieved inpart by spreading copies of high-demand material over a network of distributed servers S ! D BiZdoM : Companies History Part 1Prototype Ready in 1998A chance conversation with an MIT business student led Lewin to suggest that he and Leighton usetheir research to enter MITs Sloan School of Management s annual entrepreneur contest Lewins S ! Dmotivation was simple enough: He needed his share of the $50,000 prize to pay off some studentloans Although their business proposal failed to win the 1998 competition, it was among the six S ! Dfinalists out of 100 entries, prompting Leighton and Lewin to continue their work By August 1998 S ! Dthey had developed a prototype of their system that worked to their satisfaction Some major S ! Dcustomers interested in working with them on beta trials were lined up, and the partners begantaking steps, including the licensing of some MIT intellectual property, to form a company to exploit@Team BiZdoM 34

BIZDOM : COMPANIES HISTORY PART 1 their research For a name they chose Akamai, a word they found after coming across a Hawaiian S ! D dictionary on the Web and looking up the word for "intelligent " Akamai was also a colloquial term S ! D for "cool "S ! D Akamai found no shortage of interested investors In a first round of venture capital, the start-up S ! D company received $8 3 million from Bostons Polaris Ventures and New Yorks Baker S ! D Communications A second round was conducted a few months later, garnering $35 million from S ! D Polaris and Baker, plus newcomers Battery Ventures of Wellesley, Massachusetts, and TCW Group of Los Angeles In addition, Akamai was able to sell interests in the company to other high-tech S ! D companies Akamai and Cisco Systems Inc began discussing a technology-sharing agreement, which S ! D S ! D led to Cisco buying a 4 percent stake for $50 million, followed a few weeks later with Microsoft Corporation acquiring a 1 percent stake for $15 mill ion To that point, Akamais software was being S ! D run on a Unix-based operating system, Linus The Microsoft deal called for Akamai to develop a S ! D version of its software that could be run on Microsofts NT operating system Later, Apple also paid S ! D $12 5 million to get a piece of the action S ! D S ! D Akamais business model also attracted the attention of seasoned executive George H Conrades, a S ! D 30-year veteran of IBM who rose to the rank of senior vice -president for U S Operations and later S ! D S ! D headed technology research and development firm BBN until it was acquired by GTE Corp He then S ! D became a partner at Polaris and after the venture capital firm began investing in Akamai he became a member of the start-ups board and served in an advisory capacity He was subsequently tabbed to S ! D serve as Akamais chairman and CEO, taking over in April 1999 when the company became operational Akamais chief executive officer, Paul Sagan, was another experienced hand, the former S ! D president of Time Inc New Media and founder of Time Warner Cables Road Runner high-speed S ! D cable service S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 35

Alfa RomeoKey Dates:1910: Società Anonima Lombarda Fabbrica Automobili (Alfa) is founded S!D1915: Nicola Romeo acquires Alfa S!DFounding an Automotive Legend in 1910 Alfa Romeo was founded in Portello, just north of Milan, in 1910 Cav S ! D Ugo Stella, managing director of a Portello assembly plant for the Darracq, a French automobile, decided to organize a group to purchase the plant and build a car more suitable for the harsh and mountainous Italian roads Along with a few Milanese businessmen, he S ! D took out a loan to purchase the Darracq plant The group named S ! D itself the Lombardy Car Manufacturing Company (Società Anonima Lombarda Fabbrica Automobili) and soon was known by its initials -- ALFAS ! D Ugo Stella hired Giuseppi Merosi as chief automotive designer of thenew company Merosi had worked previously as a designer for Marchand, Fiat, and Bianchi car S ! Dcompanies and was well qualified to design both touring cars and cars for the racing circuit His first S ! Ddesign for ALFA included a monobloc engine, high tension magneto ignition, three -bearing crankshaft,side valves, and pressure lubrication A radiator badge also was designed for the new firms cars, S ! Dincluding the soon-to-be famous red cross and snake, symbols that were part of the emblems of thecity of Milan and the Visconti family A blue border surrounded the edge of the circular badge, with S ! Dthe word ALFA at the top and MILANO at the bottom First inscribed in brass lettering, the S ! Dlettering was replaced shortly afterward with white enamel During the first year of business, ALFA S ! Dmanufactured ten cars each of a 12 horsepower and a 24 horsepower model; one year later,production had increased to 40 cars of each model By the time World War I began in 1914, ALFA S ! D BiZdoM : Companies History Part 1was manufacturing 272 chassis a year with a staff of almost 300 S ! DAlthough revenues from car sales seemed to provide adequate funds for ALFA to continue business,in 1915 the company was acquired, suddenly and surprisingly, by Nicola Romeo From rather humble S ! Dbeginnings, Romeo had graduated from the University of Liege with a degree in electricalengineering After working for a short time in Germany and then France, he returned to his native S ! DItaly and started a business in Milan in association with the Amer ican company Ingersoll-Rand S ! DRomeos business was so successful that he soon formed his own firm to manufacture miningequipment This, too, proved successful; the expansion of his company was so rapid, that the number S ! D@Team BiZdoM 36

BIZDOM : COMPANIES HISTORY PART 1 of employees he hired increased from 100 to more than 1,200 in three months during the summer of 1915 S ! D When Romeo purchased ALFA in 1915, there were fears among the remaining management and workers that the company was doomed for extinction Romeo had purchased not only ALFA, but also S ! D numerous other firms in the area His goal was to create an engineering combine that manufactured S ! D compressors, tractors, air brakes, ploughs, railway equipment, and other assorted products for use in heavy industry Fortunately, Romeo was also a motoring enthusiast and had always dreamed of S ! D making a prestigious Italian sports car As a result, he immediately expanded the production facilities S ! D at the ALFA factory in Portello In February 1918, he changed the name of the firm to Società S ! D Anonima Italiana Ing Nicola Romeo & Company In addition, he decided to place his own name next S ! D S ! D to the well-respected ALFA name on the companys radiator badge, and after 1918 all the firms cars appeared with Alfa Romeo on the hood S ! D During the 1920s Alfa Romeos on the racing circuit established the company as one of the premier sports car manufacturers in the world Alfa Romeo relied heavily on modified versions of its prewar S ! D racing cars, while designer Merosi labored frantically to design more up -to-date models As Merosis S ! D new designs were introduced on the raceways, the company began to win such prestigious competitions as the Parma-Berceto, the Consuma Hill Climb, the Coppa Florio, the Aosta -Great St S ! D Bernard Hill Climb, the Autumn Grand Prix, the Circuit of Savio race, the Ci rcuit of Mantua race, the European Grand Prix, and many, many more Nicola Romeo was determined to wrest the European S ! D racing crown from Italian competitor and rival Fiat, and he employed the best drivers and mechanics in order to do so Enzo Ferrari, who was to become famous in his own right as an Italian sports car S ! D manufacturer, won the 1927 Circuit of Modena in a six-cylinder 150 Alfa Romeo As Alfa Romeo S ! D continued to win races, the innovations that led to the successes of the racing cars directly affecte d the design and production of the companys touring cars and roadsters; for example, front wheel brakes, adapted from the Alfa Romeo racing cars, were installed on touring cars for the first time S ! D Alfa Romeos fortunes during World War II slipped even fu rther In 1936 a Spanish engineer by the S ! D name of Wilfredo Ricart was hired to replace Jano as head of the design office at Alfa Romeo RicartBiZdoM : Companies History Part 1 | S ! D had extensive experience designing diesel engines and sports and racing cars and also had organized public transportation in the city of Valencia before arriving in Italy Expectations of his potential for S ! D designing Alfa Romeo cars were very high But Ricart, it was soon discovered, exhibited some very S ! D strange habits, including a penchant for wearing enormously thick rubber-soled shoes When asked S ! D by Enzo Ferrari why he affected these shoes, Ricart replied in all seriousness that a geniuss brain must be cushioned against the harsh unevenness of the ground lest its delicate mechanics be disrupted Upon hearing Ricarts response, Ferrari left Alfa Romeo During the war years, Ricarts S ! D S ! D designs for the company never went beyond the prototype stage S ! D Feedback at bizdomonline@gmail.com 37

Alfa Romeo celebrated its 90th anniversary in 1999 with another success, the launch of the 166sedan, designed to compete in the same class as the Mercedes E series The 166 proved as S ! Dsuccessful as the 156, and in Europe, at least, Alfa Romeo had once again become a favorite amongcar buyers The return of the Alfa Romeo image was not enough to rescue the failing Fiat, however S ! D S ! DAfter posting losses of more than US$100 million in 1999, Fiat acknowledged that it was seeking apartner automotive company S ! DIn March 2000, the company reached a partnership agreement with General Motors In a share- S ! Dswap agreement, which gave GM 20 percent of Fiat and Fiat 5 1 percent of GM--making the Italian S ! Dcompany the largest GM shareholder--the two companies announced their intention to join forces toenhance their positions in the European and Latin American markets At the same time, Fiat S ! Dacknowledged its intention to return Alfa Romeo to the U S market as early as 2004, with a new S ! D S ! DSpider model especially designed for the U S car market With the backing of Fiat, Italys largest S ! D S ! D S ! Dindustrial concern, and GM, the worlds largest automaker, the Alfa Romeo name seemed certain tocontinue thrilling sports car enthusiasts well into the 21st century S ! D BiZdoM : Companies History Part 1@Team BiZdoM 38

BIZDOM : COMPANIES HISTORY PART 1 Alfa Laval AB 1877: Gustaf de Laval begins to develop the first Swedish milk separator S!D 1883: De Laval and Oscar Lamm, Jr , create AB Separator (ABS) S!D S!D 1889: The Alfa patent is acquired S!D 1926: British De Laval Chadburn Co changes its name to Alfa-Laval Co , a wholly owned S!D S!D ABS company S!D 1963: ABS changes its name to Alfa-Laval AB S!D 1988: Sharples Separator Co is acquired S!D S!D 1991: Tetra Pak Group purchases Alfa-Laval S!D In 1877, the Swedish engineer Gustaf de Laval began to develop the first Swedish milk separator A S ! D year later, he secured a patent for his design After graduating from Uppsala University, de Laval S ! D entered the Technological Institute and passed the final examination in 1866 Times were hard, and S ! D de Laval was forced to take a position as clerk in the general store at the Falun mines; an engineer with a first-class diploma, he weighed out nails, herring, and salt to miners In 1867, however, de S ! D Laval received a grant from the Swedish House of Lords and pursued advanced studies at Uppsala University in 1872, receiving the degree of doctor of philosophy S ! D The process of mechanically separating cream and milk through the physical application of centrifugal force was first exploited in 1876 by Wilhelm Lefeldt in Germany and two years later in Denmark by L C Nielsen The latter technology was acquired by Burmeister & Wain of Copenhagen S ! D S ! D S ! D in 1882 Lefeldt and Nielsens separators could not work continuously, u nlike Gustaf de Lavals S ! D superior system On February 26, 1878, de Laval entered into partnership with Swedish engineer S ! D Oscar Lamm Together they founded the trading company Oscar Lamm, Jr , of Stockholm The S ! D S ! D S ! D partnership was successful, with de Laval in charge of the technical side and Lamm the financial and commercial aspects of the business Lamm tried to interest influential agents in Europe, among these S ! D H C Petersen & Company, Copenhagen; Bergedorfer Eisenwerk near Hamburg; Th Pilter, Paris; the S ! D S ! D S ! D trading firm D Hald & Company, London; and Boeke & Huidekooper of Groningen in the S ! D Netherlands In the companys first year of business, 1879, overseas sales accounted for 50 percentBiZdoM : Companies History Part 1 | S ! D of the companys turnover Foreign demand for cream separators rose sharply, and in 1883 around S ! D 80 percent of sales were from overseas Almost 97 percent of exports were sold through foreign S ! D distributors in the more industrially advanced countries The product in question was the energy- S ! D intensive, power-driven cream separator Manual cream separators were not introduced until 1887 S ! D S ! D The company did not set up a domestic marketing division until four years after it had established its foreign distribution network Its agents were already specialized in marketing dairy equipment, and S ! D cream separators complemented their existing product mix S ! D Feedback at bizdomonline@gmail.com 39

Four other European companies also manufactured power -driven cream separators in the late 1870s S ! DThey were Nielsen & Petersen--from 1882 owned by Burmeister & Wain--in Denmark, and Lefeldt,Fesca, and Petersen in Germany The industrial exploitation of this process was protected by patent S ! D S ! DThe holder of the patent for the separation method secured temporary legal protection againstimitation and had the opportunity of gaining an international monopol y The patent on the S ! Dapplication of centrifugal force for separating milk and cream, which had been granted in 1884,expired in the countries in which it had first been granted in 1892 --namely, in Sweden, Denmark,France, Germany, and the United States--and in countries where these patents had subsequentlybeen registered The reason no domestic cream separator industry had evolved in more industrially S ! Dadvanced countries like the United Kingdom and France is probably that foreign patent registrationsfrom the late 1870s blocked the establishment of an indigenous industry until the beginning of the1890s S ! DSurviving the War YearsBy the time World War I began in 1914, ABS had acquired shares in Goldkuhl & Broström, BuenosAires This was raised to a majority interest in 1927, when the name was changed to Sociedad Alfa - S ! DLaval In 1960, it became a wholly owned ABS company S ! D S ! DIn 1915, ABSs John Bernström resigned as managing director and was replaced by his nephew,Captain Erik Bernström J Bernström left his post as chairman of the board in 1916, to be S ! D S ! Dsucceeded by Ernst Trygger, and his son Richard Bernström was vice -chairman until his death in1919 The U S company Lavalco produced a milking machine in 1918, and four years later the first S ! D S ! D S ! Dmilking machine based on the Lavalco design was manufactured by ABS in Sweden In 1922, Axel S ! DWästfelt succeeded Erik Bernström as managing director, and the company Zander & Ingeströmbecame ABSs sales representative for industrial separators in Sweden and Norway In the United S ! DKingdom, the De Laval Chadburn Company was formed in 1923 for sales of milk and industrialseparators In 1925, an ABS subsidiary was formed in Helsinki, and in 1926 British De Laval S ! DChadburn Company changed its name to Alfa-Laval Company, a wholly owned ABS company In the S ! Dsame year, subsidiaries were formed in Sydney, Australia, and Palmerston North, New Zealand BiZdoM : Companies History Part 1 S ! DBetween 1927 and 1929, subsidiaries were formed in Oslo, Warsaw, Danzig, and Zagreb,Yugoslavia S ! DIn 1928, in cooperation with its Swedish competitor AB Pump-Separator, ABS bought the rivalcompany AB Baltic Only a few months later, ABS acquired its last major Swedish competitor, AB S ! DPump-Separator itself Both acquisitions, AB Baltic and AB Pump-Separator, had been more energetic S ! Dthan ABS in seeking ways to take advantage of the upswing in trade at the beginning of World War I@Team BiZdoM 40

BIZDOM : COMPANIES HISTORY PART 1 and had expanded their capacity and grown faster than ABS These two acquisitions were the most S ! D important mergers within the Swedish separator industry S ! D In 1930, Jacob Wallenberg of the Swedish banking house Stockholms Enskilda Bank was elected to the board of directors The U S company Lavalco had a bad year and ceased paying dividends until S ! D S ! D S ! D 1935 The German subsidiary Bergedorfer Eisenwerk also operated at a loss until the end of 1933 S ! D S ! D In 1934, the Alfa-Laval Company (U K ) moved to facilities in Brentford, near London A new S ! D S ! D S ! D subsidiary was formed in Melbourne in 1936, and the last important Swedish competitor, Eskilstuna Separator, was acquired in 1939 The outbreak of World War II brought with it an upswing for the S ! D U S companies During the war, Lavalco increased the number of personnel from 700 to 2,300, and S ! D S ! D S ! D the U S -based Turbinbolaget increased personnel from 1,100 to 2,400 The companies sales S ! D S ! D S ! D increased by more than five times the prewar figure More than 50 percent of the Poughkeepsie S ! D factorys capacity was taken up by precision work for defense purposes, but at the German factory in Bergedorf manufacture of munitions was extremely limited In 1942, Francis Arend, managing S ! D director of Lavalco, died and was succeeded by Ralph Stoddard, who three years later was succeeded by his son, George ABS acquired Arends 10 percent share in Lavalco S ! D S ! D In 1939, Alfa-Laval Company at Brentford began producing industrial separator s and milking machines, and increased its sales by 70 percent During World War IIs so-called Skagerack S ! D blockade, Sweden and ABS were cut off from many business partners This period was to be a S ! D watershed between the old and the new eras in the companys history S ! D Growth and Expansion: 1950s -80s During the 1950s, the cellulose industry became the major customer group for plate heat exchangers, or PHEs, which were used in the pasteurizing process and for yeast manufacture ABSs S ! D interest in these developments was taken care of in Germany by Bergedorfer Eisenwerk PHEs could S ! D be used to comparable advantage in breweries and yeast manufacturing; later, distilleries, wineries, and other foodstuff industries came to appreciate their uses One successful Swedish competitor, S ! D Rosenblads Patenter, was taken over by ABS in 1962 ABS dominated the market for PHEs in the S ! D chemical and marine sectors while the strength of its U K competitor, the Aluminium Plant and S ! D S ! D Vessel Company (APV), lay in the food and beverage sectors APV was the same size as Alfa-Laval in S ! D this sector ABSs major competitor in Europe was the family -owned company Westfalia AG in Oelde, S ! D Germany, and in the United States the Sharples Separator Company of Philadelphia Westfalia andBiZdoM : Companies History Part 1 | S ! D APV combined forces against ABS S ! D Feedback at bizdomonline@gmail.com 41

Allianz AGKey Dates:1890: Carl Thieme and Wilhelm Finck found Allianz Versicherungs-Aktien-Gesellschaft S!DThe company was founded as Allianz Versicherungs -Aktien-Gesellschaft in 1890 by Carl Thieme,director of the Munich Reinsurance Company, and the private banker Wilhelm Finck, at the timewhen the German economy had gotten back into its stride after a long depression and was enteringthe second phase of its industrial revolution Taking advantage of the rapid spread of mechanization S ! Din the workplace and the steeply rising number of industrial and traffic accidents, Thieme and Finckbegan by concentrating on accident and liability insurance From the 1890s until World War I, S ! Dhowever, Allianz grew and prospered mainly through freight insuran ce, which with reinsurance hasbeen fundamental to the Allianz story from its beginning In the view of leading experts of the time, S ! Dthe freight insurance market was very overcrowded, but Paul von der Nahmer, Allianzs secondcompany chairman who led the firm from 1894 with Carl Thieme and from 1904 alone, spotted thegreat possibilities offered by the rapid expansion in the volume of German trade In 1913, when S ! DAllianz had already become by far the largest German freight insurer, this division produced alm ost45 percent of the firms premium income S ! DBefore World War I, Allianz had already begun to extend its scope, although it was still far fromoffering a full composite range In 1900 it received the first German license to sell plant insurance, S ! Dand in 1911 it was also licensed to insure against mechanical breakdowns, a service availableexclusively from Allianz until 1924 For three decades the role played in the firms business by these S ! Dtwo classes of insurance did not increase, but Allianzs expertise in this area due to its earlyinvolvement is one reason for the firms present undisputed position as market leader in the field ofengineering--that is, mechanical, plant, and equipment--insurance In 1905 Allianz included direct fire S ! Dinsurance in its list of benefits S ! DGrowth in the 1920s BiZdoM : Companies History Part 1Allianzs advance from medium size to the rank of largest insurance group in Germany took placewithin a few years, between the end of World War I and the mid -1920s Before the war the Berlin- S ! Dbased firm had drawn only about 20 percent of its premium income from abroad Afterward, like all S ! DGerman insurers, it was cut off from international markets almost completely but later, in a riseunparalleled in the history of German insurance, it came to dominate the whole industry The S ! Dfoundation for this achievement had been laid by Paul von der Nahmer with his sound and farsightedfinancial strategy As one of the few people to assess accurately the effects that war would have on S ! Dthe future of Germanys currency and its insurance industry, he had taken early steps to provideAllianz with substantial foreign currency reserves that helped it to achieve an almost proverbial@Team BiZdoM 42

BIZDOM : COMPANIES HISTORY PART 1 stability amidst the chaos of inflation After his death in 1921 his successor, Dr Kurt Schmitt, used S ! D S ! D these financial reserves to enable Allianz to establish the highest turnover of all German insurers S ! D In 1917, at the age of 31, Schmitt was made executive managing director His innovations were to S ! D lead the company to the top of the German insurance industry and to a major global presence He S ! D attempted to establish a foothold in all markets, to expand into all classes of insurance, and to extend the companys international activities The conditions of the Treaty of Versailles had stood in S ! D the way of the latter aim, but his efforts to make the firm active in all classes of insurance were therefore all the more successful In 1918 he established the motor insurance company Kraft - S ! D Versicherungs-AG (Motor Insurance AG), the first large company in Germany to specialize in motor vehicle risks Immediately after the war ended he also sought collaboration with large life insurance S ! D companies When these negotiations unexpectedly broke down early in 1922, Schmitt, by then S ! D chairman of the board of Allianz, founded within the space of ten days the Allianz Lebensversicherungsbank-AG (Allianz Life-Assurance Bank AG), which by 1927 had grown into the largest life insurance company in Europe S ! D During the hyperinflation of 1922-23, numerous mergers speeded the firm on its way to the top S ! D Specialist insurance companies were finding it particularly hard to survive, and the German insurance market was hit by a wave of mergers Allianz concentrated on absorbing only those companies that S ! D would fill existing gaps in its own range, both of services and of regions served S ! D In the years of rapid currency depreciation, Allianzs merger policy differed markedly from that of other companies It succeeded because it was directed towards maximum rationalization Whereas in S ! D S ! D other groups mergers tended to result in little more than a hodgepodge of individual companies, the Berlin group immediately welded all its member companies into an organic whole, created a new overall structure, and finally undertook radical rationalization at home and abroad The latter task S ! D was achieved principally by Hans Hess, who had joined Allianz in 1918 S ! D Until the early 1920s Allianz, in common with all other German insurance companies, employed outdated administration and organization techniques The Allianz board was the first to realize that S ! D combating the effects of inflation and employee rationalization would have to be top priorities Hess S ! D succeeded in introducing the basic principles of scientific management into the insurance business ByBiZdoM : Companies History Part 1 | S ! D means of an assortment of technical and, even more importantly, organizational improvements, he managed a significant increase in productivity and a reduction in costs He spread a network of S ! D branch offices across Germany and ensured that the latest equipment was installed He replaced the S ! D old, strongly independent insurance agents, each working for several companies covering the most varied types of insurance, with agents trained in composite insurance and working solely for Allianz S ! D He also set up a system of incentive schemes for employ ees, run with an element of sporting competition Alongside this initiative came the extension of the social installations and services S ! D provided for staff These measures gave the firm great stability in periods of crisis Even during the S ! D S ! D world depression Allianz was able to maintain its volume of premiums and considerably increase the number of personnel S ! D Feedback at bizdomonline@gmail.com 43

Whereas during the inflation period the firm had concentrated on broadening its scope, after thestabilization of the currency in 1923-24 it set its sights on growth in volume It was engaged in a S ! Dmajor expansion of its capacities when in the mid-1920s a new wave of amalgamation policies hitGerman industry, and large groups formed for chemicals manufacture, electrical engineering, andheavy industry gave rise to a significant increase in risk potential S ! DIn 1927 the group surprised the public by announcing a merger with the famous Stuttgarter VereinVersicherungs-AG, the market leader in accident and liability insurance It was the largest merger to S ! Ddate in the history of German insurance When in the summer of 1929 the Frankfurter Allgemeine S ! DVersicherungs-AG, the second largest insurance group in Germany, collapsed as the result of illegal,loss-making noninsurance deals, Allianz decided within 24 hours to meet all of the Frankfurtersobligations to its clients With Münchener Rückver-sicherungs-AG, Allianz immediately founded the S ! DNeue Frankfurter Allgemeine Versicherungs-AG to assume the Frankfurters liabilities This dramatic S ! Drescue operation saved the whole insurance industry from a serious loss of public confidence andfrom state intervention in its affairs S ! DPrewar Germany and World War IIThe industry could not, however, escape government interference after Adolf Hitler came to power in1933 and enlisted savers and insurance policy holders in his secret financial preparations for war S ! DFrom 1935 onwards the regime obliged insurance companies to increase their subscriptions togovernment loans; from the summer of 1942 three-quarters of their investment capital was affectedin this way S ! DIt was in an attempt to protect the industry from this sort of encroachment that in 1933, after muchhesitation, Kurt Schmitt agreed to become trade minister in Hitlers second cabinet He was S ! Dconvinced he would be able to restrain National Socialism and lead it in the direction he wished it togo A few weeks were enough to make him regret his action; he gave up the attempt, and after a S ! Dyear took the first opportunity to withdraw from politics In 1935 he became chairman of the S ! Dsupervisory board of Allianz Lebensversicherungs-AG and in 1938 he was made chairman of the BiZdoM : Companies History Part 1board of directors of Münchener Rück In 1933 he had been succeeded as chairman of Allianz S ! DVersicherungs-AG by his former deputy, Hans Hess, who during the who le of the Third Reich madeno secret--even in public--of his profound dislike of Naziism and took part in the resistancemovement against Hitler S ! DDuring the 1920s and 1930s Allianz expanded its range, venturing into completely new areas ofinsurance Its innovations in the field of engineering insurance were particularly forward -looking It S ! D S ! Dwas the first in Germany to offer installation and guarantee insurance, in 1923, and construction andcivil engineering insurance, in 1934 While other insurers still saw their role purely and simply in S ! Dterms of providing financial compensation for loss, Allianz built up an independent technical -advice@Team BiZdoM 44

BIZDOM : COMPANIES HISTORY PART 1 and loss-prevention service In 1920, using special engineers, it carried out the first regular S ! D inspection of power plants From 1924 it also published Der Maschinen-Schaden (Mechanical S ! D Breakdown), a periodical that today continues to combine the utmost practicality with high scientific standards In 1932 Allianz set up its first materials- and equipment-testing installation, which swiftly S ! D became a highly reputed center for loss research The firm completed its activities in this area in S ! D 1938 with the introduction of a fire damage prevention service Political conditions in the interwar S ! D years, however, meant that it could only scratch the surface of its international aspirations S ! D World War II hit Allianz hard The head office in Berlin was completely demolished, and since it was S ! D situated in the eastern part of the city there could be no question of rebuilding it The partition of S ! D Germany after the war also meant the loss of a large part of its marketing area, together with several of its most successful branch offices At the end of the war the various specialized sections of S ! D the company were scattered all over Germany in various locations There was no longer any S ! D headquarters With the difficulty of communications between the western zone of Germany and S ! D West Berlin, particularly after the Berlin blockade of 1948, it became clear that in the interest of the company as a whole, Berlin must now be ruled out as a future base The seat of the central S ! D management was therefore moved to Munich, and that of Allianz Lebensversicherungs -AG to StuttgartS ! D Growth in the Postwar Era In October 1948 Hess relinquished the chairmanship of the boa rd of management He was S ! D succeeded by Hans Goudefroy, who made it his business to preserve the assets of the Allianz group and its internal stability even after the currency reform of 1948 In the mid-1950s, under his S ! D leadership, Allianz completed its second phase of rationalization The adoption of electronic data S ! D processing--in 1956 the board of directors started using one of Europes earliest computers --is a striking example of the many innovations embraced since then by Allianz At the same time, by a S ! D rapid expansion of its foreign business network, the group regained its leading position in the German insurance market Such dramatic growth was without precedent in Europe Outstripping all S ! D S ! D other insurers, Allianz acquired a presence in every part of the Federal Republic of Germany, and owing to its new slogan, " höffentlich Allianz versichert!" (I hope youre insured with Allianz!) S ! D S ! D S ! D S ! D Created in the mid-1950s, it became known to virtually everybody S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 45

Atari CorporationKey Dates:1972: Nolan Bushnell establishes Atari as a computer game developer S!DAtari was founded by Nolan Bushnell in 1972 Bushnell had first become interested in computer S ! Dgames as an engineering student at the University of Utah After graduation, he worked as a S ! Dresearcher in a Silicon Valley firm, and there he developed his first electronic game, called ComputerSpace, in 1971 Although this game, like all the other fledgling products before it, was not a S ! Dcommercial success, Bushnell used $500 to start a company with a friend anyway, nam ing it Atari, aterm from the Japanese game of "go" used to politely alert opponents that they are about to beoverrun S ! DBushnells second game was a revolutionary development, in that it was far simpler than other gameshad been Called "Pong," it was an electronic version of ping pong, played on a screen with a vertical S ! Dline down the middle and two sliding paddles that batted a blip back and forth The company first S ! Dmarketed a coin-operated version of this game in 1972 for use in arcades Since the game could be S ! Dplayed by two people in direct competition with each other, Pong was a dramatic departure from thesolitary skills of pinball, and it changed the nature of arcade games Unfortunately, Atari was unable S ! Dto reap the rewards of this advance, since dozens of competitors quickly duplicated the game andgrabbed a large portion of the market Within two years of Pongs introduction, its inventors had sold S ! Donly 10 percent of the machines in existence S ! DAtari channeled the profits it had made into ventures tha t turned out to be shortsighted andnonproductive The company wasted half a million dollars on an abortive attempt to market its S ! Dproducts in Japan In addition, it sunk resources into an attempt to open game arcades in Hawaii S ! D S ! DAlthough Atari introduced a series of new games to follow Pong, formulated in the companysinformal, unstructured atmosphere, none caught on as much as its first offering S ! DVideo games for use in the home had first been introduced by Magnavox in 1972, and Atari decidedthat a logical next step would be to introduce a home version of Pong, to be played on a television BiZdoM : Companies History Part 1screen Short of funds, the company worked out an arrangement with Sears, Roebuck & Company for S ! Dthe retailer to buy all 100,000 of the devices that Atari manufactured, as well as helping out withfunding for Ataris inventories, to guarantee delivery In the fall of 1975, the home version of Pong S ! Dwas introduced S ! DEnter Warner Communications: The Late 1970sClearly, Atari needed further funds to expand Rather than sell stock to the public, the company S ! Ddecided to look for a buyer In 1976, after four months of legal wrangling complicated by a lawsuit S ! Dfiled against Bushnell by his first wife, Atari was sold to Warner Communications Inc for $28 million S ! D S ! DOf this, Pongs inventor collected about $15 million S ! D@Team BiZdoM 46

BIZDOM : COMPANIES HISTORY PART 1 By the next year, however, Ataris problems had moved beyond funding The companys products at S ! D the time could be used to play only one game, and consumers were beginning to feel that the novelty of playing that one game had worn off In late 1977 Ataris researchers introduced the Video S ! D Computer System, or VCS 2600, which used a semiconductor chip in a programmable device With S ! D this product, the customer gained versatility Any number of games could be played on cartridges, S ! D which were inserted into the set like cassette tapes S ! D Introduced shortly before the big Christmas selling season, the new games initially failed to conclusively dislodge the old, single-purpose products In addition, the company had come up against S ! D steep competition from several of its competitors, who also had introduced multipurpose video game equipment Throughout 1978, Atari saw its new product languish on the shelves S ! D S ! D New Games and New Competition in the Early 1980s Ataris arcade operations were also going strong In 1980, the company introduced Asteroids to S ! D compete with the Space Invaders arcade game, which was produced by another company Ataris S ! D version proved to be a popular alternative By the end of the year, 70,000 of the units had been S ! D shipped Overall, revenues from coin-operated games reached $170 million, up from $52 million the S ! D year before In addition to its arcade business, in 1980 Atari also began to explore the market for its S ! D products overseas The companys overall revenues had more than doubled in just one year, topping S ! D $415 million, and its operating income had increased by five times S ! D Because the sale of video cartridges was extremely profitable, Atari introduced new games at a steady pace, releasing titles at the rate of one per mont h In 1981, with demand running at feverish S ! D pitch, the company decided to ration its product More than one million cartridges of Space Invaders S ! D had been sold All in all, with its competitors falling by the wayside, Atari was the worlds largest S ! D producer of video games, holding 80 percent of the American market At the end of 1981, the S ! D company had sold more than $740 million worth of video game equipment and cartridges In S ! D addition, its home computer operations had become profitable, and Atari products dom inated the sales of low-priced machines S ! D To protect its strong market position in the video game field, Atari also began an aggressive effort to shut down video game pirates by taking legal action against them In November 1981, the company S ! D won an important case against a company that was selling a copycat "Centipede" game Although S ! DBiZdoM : Companies History Part 1 | Atari was aggressive in introducing lucrative new software, it lagged behind in marketing new hardware Essentially, the company had not followed its introduction of the Video C omputer System S ! D with a second, more sophisticated generation, except to produce a remote -control model, known as Touch Me, which cost $100 more than the basic set S ! D The introduction of a Pac-Man cartridge in the spring of 1982, however, helped to stave off t hese concerns, as the company estimated that it would sell nine million of the games, to reap over $200 million in that year alone Pac-Man was a breakthrough game, attracting many women and families S ! D to the video game market for the first time, and thereby expanding the industrys consumer base In S ! D the fall of that year, Atari also took steps to update its game equipment, introducing a more elaborate version of its game machine, which sold for $350 It also quadrupled its sales of personal S ! D Feedback at bizdomonline@gmail.com 47

computers In general, Atari poured tens of millions of dollars into research and development, in an S ! Deffort to stay in front of the competitive industry S ! DDespite these efforts, however, by the end of 1982, Ataris rise in the industry, which many hadbelieved would continue indefinitely, had been checked Competition in the video games industry had S ! Dexpanded dramatically as new companies rushed in to the lucrative field Now, Atari faced more than S ! D30 other game makers, some of which had lured away the companys top game desi gners, adamaging loss in a field where innovation was suddenly as important as distribution On December 8, S ! D1982, Ataris corporate parent, Warner Communications, announced that previous sales estimateswould not be met because of "unexpected cancellations and disappointing sales during the first weekof December," as the New York Times reported at the time S ! DTurnaround under Jack TramielTo stem Ataris losses, Warner brought in a new head executive who fired more than half thecompanys 10,000 employees Nevertheless, costs could not be brought in line with revenues, and S ! Dthe company needed an infusion of further funds to pay for research on new products Unable to S ! Dsupport this continuing drain on its resources, Warner Communications began to look for a bu yer forits failing subsidiary In July 1984, the company announced that it had agreed to sell all Atari S ! Doperations, with the exception of the small coin-operated arcade video game business and a newtelecommunications venture, called Ataritel, to Jack Tra miel, a businessperson who had made hisreputation as the head of Commodore International, Ltd , a computer company The price for Atari S ! D S ! Dwas $240 million Three days after purchasing the company, Tramiel began his own aggressive effort S ! Dto cut costs, laying off hundreds more employees and taking steps to collect outstanding funds owedto the company Unable to sell unwanted video game cartridges, Atari dumped truckloads of them S ! Dinto a landfill in New Mexico Tramiel installed three of his sons in top management positions, S ! Dbrought in former associates to fill other key spots, and made plans to raise funds through the saleof stock to the public To Tramiel, Atari was poised to become a computer manufacturer to rival his S ! Dprevious company, despite the fact that its extant computer offering, the 800XL, was outmoded andless powerful than its competitors S ! D BiZdoM : Companies History Part 1Slipping Sales: Late 1980s and Early 1990sThe following year, Atari once again allied itself with its founder, Nolan Bushnell, agreeing to marketvideo games that he had developed Furthermore, the company announced another big advertising S ! Dpush, in an effort to ensure that the video game crash that had threatened Atari in the early 1980swould not recur Atari also turned to the courts in December 1988, charging that Nintendos S ! Dlicensing policies monopolized the market These moves reflected the continuing lack of demand for S ! DAtaris home computer products in the United States, as the company, hampered by its image as atoymaker rather than a high-tech powerhouse, fought for part of this highly competitive market In S ! D@Team BiZdoM 48

BIZDOM : COMPANIES HISTORY PART 1 January 1989, Nintendo followed up Ataris suit with a countersuit charging copyright infringement, and by the end of the year, the dispute had reached the U S House of Representatives, whose S ! D S ! D subcommittee on anti-trust echoed Ataris charges In November 1989, Atari continued its push into S ! D the game market by introducing a portable video game player called Lynx, which sold for $200, to compete with Nintendos popular Game Boy The company finished out the year with earnings of S ! D $4 02 million S ! D S ! D In the spring of 1990, Atari introduced its Portfolio palmtop personal computer Early the following S ! D year, the company came out with a revamped, color Lynx product, and several months later it introduced new notebook computers Despite these advances, however, Atari was in trouble Sales of S ! D S ! D its home computers in Europe began to flag as the company faced increased competition, and in 1991 foreign sales collapsed In the video games field, Ataris efforts to challenge N intendo through S ! D legal means had been rebuffed, and the company was unable to regain significant market share from its Japanese competitors By the first quarter of 1992, losses over a three-month period had reached S ! D $14 million S ! D In September 1992, Atari took steps to stem its losses by cutting its research and development expenditures in half and closing branch offices in three states The company hoped that the S ! D introduction of new products, such as the Falcon030 multimedia home entertainment computer would help to revive its fortunes In addition, the company was working on a more sophisticated S ! D video game machine, called the "Jaguar " Nevertheless, 1992 ended with a loss of $73 million S ! D S ! D Atari Unravels in the Mid-1990s In June 1993, IBM signed a $500 million deal with Atari to manufacture Jaguars hardware, and the first sets hit stores in November As Jaguar tested the marketplace in 1994, Atari settled a licensing S ! D dispute with Nintendo by way of an agreement with former parent Time Warner to raise its stake in Atari to 27 percent Atari also licensed Jaguar to Sigma Design of California, whose full -motion video S ! D technology promised to enable Atari to make the jump from dedicated video game players to the home PC In September 1994, arch rival Sega also agreed to pay Atari $90 million for the rights to S ! D Ataris 70 U S game patents Finally, a partnership with Britains Virtuality Group seemed to promise S ! D S ! D S ! D a new cutting-edge application for the Jaguar platform: Atari and Virtuality would design a 3 -D virtual reality home gaming system to debut in 1995 Within a year of Jaguars introduction Atari S ! DBiZdoM : Companies History Part 1 | boasted 30 titles for the system, and in mid-1995 Atari announced a CD accessory that would allow CD-ROM games to be played on the Jaguar platform S ! D All Ataris partnerships and cross-platform efforts, however, could not convince consumers to abandon Segas Saturn and Nintendos Playstation for Jaguar, and in October 1995 Atari announced that third quarter revenues had fallen a brutal 40 percent from the previous year Atari responded S ! D by slashing Jaguars retail price and announcing "Atari Interactive," a new division to make CD -ROM video games for PCs The writing was on the wall, however, and in January 1996 Jaguar was pulled S ! D from the U S marketS ! D S ! D S ! D Feedback at bizdomonline@gmail.com 49

Automobili Lamborghini Holding S p A S ! D S ! D S ! DKey Dates:1963: The Automobili Lamborghini S p A car factory begins operations S!D S!D S!D S!D1964: The first Lamborghini sports car, the 350 GT, is delivered S!D1966: The 400 GT and the Miura P400 are introduced S!D1968: The Islero 400 GT and the Espada make their debut S!D1972: The Urraco P250 and the Jarama 400GTS (the last front-engined Lamborghini) areintroduced S!D1974: The Countach LP400 goes into production; Ferruccio Lamborghini sells hisremaining 49 percent stake in the company and retires to his estate; the company hefounded soon falls into bankruptcy S!D1976: The Silhouette is introduced S!D1980: The Bologna Court sells the firm to the Mimram brothers S!D1982: The Countach LP500S and the Jalpa make their debuts S!D1987: Chrysler Corporation purchases Automobili Lamborghini S!D1988: The Countach is taken out of production, after 25 years of manufacturing S!D1990: The Diablo, the worlds fastest production car, is first produced S!D1994: Chrysler sells Lamborghini to MegaTech, which is controlled by Indonesianconglomerate SEDTCO S!D1995: Ownership of Lamborghini is restructured: Indonesia company VPower Corp holds S!D60 percent interest, MyCom Bhd , a Malaysian company, owns 40 percent S!D S!D BiZdoM : Companies History Part 11996: Vittorio Di Capua becomes president and CEO and initiates a major cost-cutting andrestructuring program S!D1998: Volkswagen, through its AUDI AG subsidiary, acquires Lamborghini S!D1999: Company is restructured into a holding company, Automobili Lamborghini HoldingS p A , with Automobili Lamborghini S p A an auto making subsidiary; Di Capua resigns as S!D S!D S!D S!D S!D S!Dhead of the company and is replaced by Giuseppe Greco S!D@Team BiZdoM 50

BIZDOM : COMPANIES HISTORY PART 1 Ferruccio Lamborghinis Road to Car Making The founder of Automobili Lamborghini, Ferruccio Lamborghini, was born in 1916 in the village of Renazzo, near Bologna As a boy he was fascinated by the mechanics of revolutionary machines such S ! D as the automobile and airplane As soon as he could, he went to Bologna, and he completed studies S ! D in mechanics just before the start of World War II During the war he worked as a supervisor of the S ! D Italian Armys vehicle maintenance unit in Rodi, Greece S ! D Lamborghinis experience in the motor pool prepared him to assume the role of entrepreneur when he returned to Italy after the war He immediately purchased old military vehicles and collected S ! D abandoned German tanks in order to reconfigure them and produce tractors, equipment that was essential for Italy to rebuild itself after the destruction caused by the war The young businessman S ! D was so successful with this enterprise that he purchased a large fa ctory and workshop in Centro during the early part of 1948 S ! D During the 1950s, Lamborghini focused on his tractor business Sales expanded rapidly, not only in S ! D Italy, but soon in other war-ravaged European countries As revenues increased, he traveled to the S ! D United States to acquire technology for the manufacture of heating systems, air conditioners, and automobile parts During the late 1950s, one of the companys most innovative products was an air - S ! D cooled automobile engine The companys financial stability provided Lamborghini with the S ! D opportunity to pursue one of his lifelong ambitions: the manufacture of helicopters Unfortunately, S ! D the Italian government refused to grant him a license S ! D A well-circulated tale describes the genesis of Lamborghinis sports car company during the early 1960s: As he grew more interested in automobiles, Lamborghini purchased a Ferrari, one of the most prestigious, high-performance sports cars in the world One day, while taking a pleasure drive, he S ! D noticed a sound in the front of his car and discovered a faulty part He drove the car to Modena, the S ! D headquarters of Ferrari, and asked them to repair or replace the faulty part He was kept waiting for S ! D such a long time that he finally demanded to see Enzo Ferrari, the founder Ferrari, already a great S ! D man in the international race car circuit, also kept Lamborghini waiting Angry and frustrated with S ! D the way he had been treated, Lamborghini decided to establish his own high -performance sports car company S ! DBiZdoM : Companies History Part 1 | 1963-72: Successful Early Years Situated in SantAgata, near Bologna, the Automobili Lamborghini S p A car factory began operations S ! D S ! D S ! D in 1963 Lamborghini hired a brilliant automotive engineer by the name of Paolo Stanzani and asked S ! D him to establish one of the most technologically advanced car-making facilities in the world The first S ! D Lamborghini sports car was delivered in 1964 and created a sensation in automotive circles The S ! D 350 GT, an aerodynamic sports car with a four-cam V12, five-speed transmission, four-wheel disk brakes, and four-wheel independent suspension, was soon competing for customers that had Feedback at bizdomonline@gmail.com 51

previously purchased such high-performance cars as Porsche and Jaguar Especially gratifying to S ! DLamborghini was the fact that his cars were as well received by automobile critics as Enzo Ferraris S ! DIn 1966 the company produced the 400 GT, while at the same time building its own transmissions S ! DDuring the same year, Automobili Lamborghini produced the Miura P400, which created a buzz inthe crowd during the Geneva Motorshow due to its compact 3929 cc transverse V12 powertrain andbare chassis In 1968 the Islero 400 GT was introduced, featuring a luxury interior, four -wheel S ! Dindependent suspension, disc brakes, and an all-aluminum quad cam V12 engine Also in 1968, S ! DLamborghini produced the Espada, a four-seater engineered with a one-piece, solid steel body S ! DWithin a short time, the Espada became one of the most popular of all the Lamborghini models, andsales of the model remained brisk for years The company was now known around the world for its S ! Dsleek, low-slung sports cars, and sold models to celebrities including Grace Kelly and Frank Sinatra,who ordered a custom-made Lamborghini and requested that the interior decoration include genuineleopard skinS ! DFrom 1970 to 1972 the company was at the height of its success A new version of the Miura P400, S ! Dthe Miura P400 SV, was introduced in 1971 and featured a completely redesigned suspensionsystem and leather interior Another new prototype, the Countach LP500, had its debut at that year s S ! DGeneva Motor Show The design included a handmade aluminum body, aerodynamic contours for S ! Dhigh-speed performance, and a dramatic new wedge look In 1972 the company introduced the S ! DUrraco P250 at the Turin Motor Show, and later introduced the Jarama 40 0GTS With a unique S ! Dhood scoop, five bolt wheels, and significantly increased horse power, the Jarama was the lastLamborghini sports car to exhibit a front engine With such new and exciting models, the company S ! Dseemed destined for even greater financial rewards and international recognition S ! D1973-87: Fall into and Recovery from BankruptcyUnfortunately, the year 1973 was a turning point for the company Automobili Lamborghini was hit S ! D BiZdoM : Companies History Part 1hard by the oil embargo and by the crisis created by the worldwide reces sion The market for high- S ! Dspeed, gas-guzzling sports cars suddenly dried up, and the firm was confronted with rapidlydecreasing sales Disappointed, Ferruccio Lamborghini decided to sell his shares of the company and S ! Dretire to a 740-acre estate on Lake Trasimeno; in 1974 he sold his remaining 49 percent stake toRené Leimer, a friend of the man who earlier in the decade had purchased a 51 percent stake, Swissbusinessman Georges-Henri Rossetti Lamborghini Automobili was controlled by the government for a S ! Dshort time, then suffered the indignity of compulsory liquidation S ! D@Team BiZdoM 52

BIZDOM : COMPANIES HISTORY PART 1 Yet, due to the determination of the remaining employees, the company continued to manufacture sport cars In 1974 the Countach LP400 went into production with a 3 9 liter V12 engine and a S ! D S ! D tubular chassis In 1975 the Urraco 300 was manufactured and, one year later, the Silhouette was S ! D introduced at the Geneva Motor Show In 1977, in an attempt to revive the companys profitability, S ! D production of off-road vehicles for the military was initiated However, the design of the prototype S ! D vehicle was altered when management discovered that the general public was more interested in purchasing the models than was the military S ! D Despite the seemingly fast-paced production schedule, the companys fate remained uncertain throughout the decade In 1980 the Bologna Court sold the firm to the Mimram brothers, young and S ! D famous entrepreneurs in the food industry who had a passion for sleek sports cars They immediately S ! D started a comprehensive restructuring program, including the infusion of large amounts of capital to rehabilitate the dilapidated manufacturing facilities in SantAgata, and then initiated a worldwide search for highly qualified automotive engineers and designers S ! D Results from the investment made by the Mimram brothers began to pay off immediately In 1982 S ! D the Countach LP500S was introduced with a new 5-liter, 375-horsepower engine A brand new S ! D model, the Jalpa, was also introduced during the same year The Jalpa, a two seater, included a 5- S ! D speed transmission and a new transverse-mounted V8 engine In 1985 the Countach underwent its S ! D third major redesign and was renamed the LP500S QV Unfortunately, the rapid production pace did S ! D not generate increased income, and the Mimram brothers soon realized t hat the amount required for capital expenditure was beyond the financial means of individual investors such as themselves S ! D Looking for an experienced and financially stable partner, they met with representatives of Chrysler Corporation S ! D 1987-93: The Chrysler Era Chrysler Corporation was attractive to Lamborghini due to the companys committed management, its ability to introduce new models in a relatively short time and, of course, the mystique of the Lamborghini sports car Chrysler paid approximately US$25 million for Automobili Lamborghini and S ! DBiZdoM : Companies History Part 1 | took control of the company in April 1987 Chrysler management immediately poured US$50 million S ! D worth of capital into the Italian automobile manufacturer, primarily to increase production and to expand into the United States S ! D Feedback at bizdomonline@gmail.com 53

BASF AktiengesellschaftKey Dates:1865: Badische Anilin- und Soda-Fabrik AG (BASF) is founded by Friedrich Engelhorn inLudwigshafen, Germany, for the production of coal tar dyestuffs S!D1897: Indigo dye is first synthesized by BASF S!D1908: Development of the Haber-Bosch process revolutionizes the production of nitrogenfertilizers S!D1913: BASFs first ammonia synthesis plant starts operation at Oppau S!D1925: I G Farbenindustrie AG (I G Farben) is founded in Frankfurt with the merger of S!D S!D S!D S!DBASF and other chemical and pharmaceutical companies, including Bayer AG (Bayer) &Farbwerke Hoechst Aktiengesellschaft vormals Meister Lucius & Bruning (Hoechst) S!D1939: I G Farben joins the war effort in Germany S!D S!D S!D1945: Allied Control Council orders the dissolution of I G Farben BASFs Ludwigshafen S!D S!D S!Dplant continues to operate independently S!D1951: Under the name Badische Anilin- und Soda-Fabrik AG, BASF develops Styropor, awhite rigid foam used as an insulating and packaging material S!D1952: Company is incorporated under the name of Badische Anilin- und Soda-Fabrik AG S!D1958: BASF establishes a join venture with The Dow Chemical Company, United States S!D1965: BASF begins acquiring other companies to produce surface coatings, drugs, cropprotection agents, and fertilizers S!D BASF was founded in 1865 by BiZdoM : Companies History Part 1 Friedrich Engelhorn, a jeweler, along the banks of the Rhine River at Mannheim Using the S ! D discoveries of the English scientist William Perkins, BASF became one of the first companies to manufacture dyes from coal tar S ! D Its specialty was the bright bluish-@Team BiZdoM 54

BIZDOM : COMPANIES HISTORY PART 1 purple known as indigo The attraction of BASFs process lay in the fact that it took coal tar, a messy S ! D byproduct of gas distillation, and transformed it into something that replaced a more expensive and unreliable organic substance S ! D BASFs synthetic dyes were less expensive, brighter, and easier to use than organic dyes Profits from S ! D these dyes were used to finance BASFs diversification into inorganic chemicals later in the century as well as new production facilities across the river in Ludwigshafen S ! D By the early 20th century, journalists were calling BASF "The Worlds Greatest Chemical Works " In S ! D 1910 the company employed over 8,000 people and by 1926 this number had grown to 42,000 Its S ! D production facilities in Ludwigshafen alone covered 2,787 acres American journalists were impressed S ! D by BASFs charity and reported, "The company has given a great deal of attention to welfare work; especially to housing, hygiene and the care of the sick " S ! D BASFs sanatoriums and dispensaries, along with its main production facilities, were financed in part by business arrangements that would be illegal today in either Germany or the United States S ! D Beginning around 1900 leaders of the German chemical industry began to dream of what was, in effect, the merger of most German chemical companies Should this cartel be formed, said Carl S ! D Duisberg, the man who eventually set up the I G Farben, " the now existing domination of the S ! D S ! D S ! D S ! D S ! D German chemical industry, especially the dye industry, over t he rest of the world would then, in my opinion, be assured " S ! D Cartels Formed in Early 20th Century By 1904 two major cartels had been formed The first of these cartels included Bayer and BASF; the S ! D second cartel was anchored by Hoechst Not only did these firms avoid competition and fix prices, S ! D but they also set up a quota system and even shared their profits For instance, a marketing S ! D agreement was reached for the sale of indigo, which was one of the most profitable dyes S ! D Both cartels played an important role during World War I Not only was dye necessary for garments, S ! D the basic chemical formulas for dyes could be altered slightly to make mustard gas and munitions S ! D Companies such as BASF provided gas and explosives for German troops and, previous to the Uni ted States entry into the war, they initiated economic activities that stunted the growth of the chemicalBiZdoM : Companies History Part 1 | companies important to the U S war effort For instance, BASF had sold aniline at below market S ! D S ! D S ! D prices to U S firms in order to discourage aniline production by U S companies As part of the dye S ! D S ! D S ! D S ! D S ! D cartel it had also engaged in a practice called "full-line forcing " If a dealer wanted to purchase item S ! D A for example, available only from BASF, the dealer was forced to purchase the whole product line, effectively eliminating U S producers S ! D S ! D S ! D After the war the German government recognized the importance of the chemical industry, especially the dye industry Not only did the chemical industry bring in needed foreign currency, it was critical S ! D to defense Since the buildup of the chemical industry was so important to Germany, the cartels were S ! D granted government loans as well as a ten-year tax deferment The cartels also received a special S ! D allotment of coal, which was scarce at the time S ! D Feedback at bizdomonline@gmail.com 55

I G Farben Formed in 1925S!D S!DIn 1925 the top executives in the chemical industry decided that the duplication of product lines andthe maintenance of separate sales forces was wasteful As a result, hundreds of German chemical S ! Dcompanies (including Bayer and Hoechst) formally merged with BASF This new corporation, S ! Dheadquartered at Ludwigshafen, was renamed the Interessengemeinschaft Farbenindustrie, or I G S ! D S ! DFarben BASF ceased to exist as a legal entity; it operated for the next 26 years as S ! D"Betriebsgemeinschaft Oberrhein," or the upper Rhine operating unit of I G Farben S ! D S ! D S ! DThe I G Farben set quotas and pooled profits But this large trust was more than an economic entity - S ! D S ! D S ! D-it was a political one I G Farbens executives feared that leftists might triumph in Germanys S ! D S ! D S ! Dunstable political climate and that I G Farben itself would be nationalized This led to the I G S ! D S ! D S ! D S ! D S ! DFarbens support for Adolph Hitler As early as 1931 its directors made secret contributions to the S ! DNazi Party S ! DNotorious World War II YearsThe I G Farben profited handsomely from its support of Hitler and his foreign policy, and it grew S ! D S ! Dtremendously during World War II By 1942 the cartel was making a yearly profit that was 800 S ! Dmillion marks more than its entire combined capitalization in 1925, the year of its founding Not S ! Donly was the I G Farben given possession of chemical companies in foreign lands (the I G Farben S ! D S ! D S ! D S ! Dhad control of Czechoslovakian dye works a week after the Nazi invasion), but the captured landsalso provided its factories in Germany with slave labor In order to take advantage of slave labor, I G S ! D S ! D S ! DFarben plants were built next to Maidanek and Auschwitz S ! DAt its peak, the I G Farben had controlling interest in 379 German firms and 400 foreign companies S ! D S ! D S ! DIt has been noted that one of the historic restraints on Germany was its lack of colonies to supplynecessary products, such as rubber During this time, the I G Farben, synthesizing many of the S ! D S ! D S ! Dcountrys chemical needs with a native product, provided Germany with the self -sufficiency it lacked BiZdoM : Companies History Part 1during World War I S ! DNear the end of the war, the BASF production facilities at Ludwigshafen were bombed extensively S ! DWhile factories built during the war were often camouflaged, the old BASF factories were morevisible to American bombers, which often flew over Ludw igshafen on the way back from otherbombing raids and dropped any leftover bombs on the ammonia and nitrogen works During the war S ! DBASF factories sustained the heaviest damage in the I G Farben with 45 percent of BASF buildings S ! D S ! Ddestroyed S ! D@Team BiZdoM 56

BIZDOM : COMPANIES HISTORY PART 1 Postwar Rebuil ding of BASF With the surrender of Germany, I G Farbens problems had only just begun Immediately after the S ! D S ! D S ! D war many members of the Vorstand, or board of directors of the I G Farben, were arrested and S ! D S ! D indicted for war crimes There was a large amount of written evidence incriminating the Vorstand, S ! D most of it written by the directors themselves I G Farben executives were in the habit of keeping S ! D S ! D S ! D copious records, not only of meetings and phone calls, but also of their private thoughts on the I G S ! D S ! D Farbens dealings with the government Despite the quantity of written evidence and testimony from S ! D concentration camp survivors, the judges at Nuremberg dealt with the Vorstand leniently Journalists S ! D covering the 1947 proceedings attributed the light sentences, no ne of which was longer than four years, to the fact that all the sentences in the trials were becoming less severe toward the end, and to the judges unwillingness to lower the standards for active participation in war crimes to include businessmen S ! D The Potsdam Agreement referred to the necessity of dismantling the I G Farben in the interests of S ! D S ! D "peace and democracy " But from the very beginning the Allies disagreed over the fate of the I G S ! D S ! D S ! D Farben The British and French favored a breakup of the company into large separate companies, S ! D while many U S officials advocated that the company be divided into smaller and therefore less S ! D S ! D influential firms Negotiations over the cartels fate lasted for several years The French and British S ! D S ! D plan eventually prevailed S ! D After operating under Allied supervision from 1947 to 1952, the I G Farben was divided in 1952 S ! D S ! D into three large firms--Bayer, Hoechst, and BASF--and nine smaller firms After this reorganization S ! D BASF was once again a small corporation located on its orig inal Ludwigshafen site Its share of the S ! D 30,000 I G Farben patents had been taken away; some of its trade secrets had been sold for as S ! D S ! D little as $1 00 It was isolated from its previous suppliers in Eastern Europe and, in fact, most of its S ! D S ! D basic supplies, such as coal, were insufficient The 55 percent of its buildings that had not been S ! D destroyed were filled with outdated equipment Leading BASF from its refounding until 1965 was S ! D Board Chairman Carl Wurster, who started at the company as a chemist S ! D Impressive Growth in the 1960s and 1970s BASF began its second decade of independence from the I G Farben with a switch to oil as a base S ! D S ! D for most of its old, coal-based formulas With the purchase of Rheinisch Olefinwerke, BASF added S ! D petroleum to the long list of raw materials it was able to provide The company soon became the S ! D worlds largest producer of plastic, and provided an astonishing 10 percent of the internationalBiZdoM : Companies History Part 1 | requirement for synthetic fibers S ! D Despite the problems with fibers, however, the company co ntinued to grow The growth plan favored S ! D by Timm, who served as board chairman until 1974, and Matthias Seefelder, chairman from 1974 to 1983 and a chemist by trade, featured vertical integration, expansion abroad, and emphasis on consumer products Of the three successors to the I G Farben, BASF was the one left with the least S ! D S ! D S ! D attractive product line S ! D Feedback at bizdomonline@gmail.com 57

BHP BillitonKey Dates:1885: Charles Rasp and George McCulloch form Broken Hill Proprietary Company (BHP) S!D1902: BHP begins extracting silver, lead, and zinc S!D1915: BHP enters steel production S!DBHP owes its foundation to Charles Rasp, a boundary rider working in the early 1880s on the Mt S ! DGipps station near Silverton in New South Wales As a boundary rider, Rasp patrolled the property, S ! Drepairing fences and generally checking the property The station was managed by George S ! DMcCulloch Rasp believed that a low broken-backed ridge on the property--the Broken Hill--contained S ! Dargentiferous ores He persuaded McCulloch and five others to form a syndicate for the purpose of S ! Dtesting the ridge The first shaft sunk proved disappointing and some of the original syndicate S ! Dmembers sold their shares, but the core members decided to raise the capital necessary for furtherinvestigation by floating a public company; they issued a prospectus in 1885 in the name of theBroken Hill Proprietary Company Almost simultaneously, news arrived of a significant silver strike S ! D S ! DBHP shares rose sharply in value once it was announced that the companys first consignment of 48tons of ore had realized 35,605 ounces of silver, worth nearly £7,500 S ! DNone of the directors of the new company had been trained as mining engineers BHP, therefore, S ! Dimported the talents of two U S engineers, William Patton and Hermann Schlapp, whose technical S ! D S ! Dwork rescued the companys collapsing Big Mine at Broken Hill S ! DEarly 20th-Century Expansion into SteelIn the first decade of the 20th century, BHP faced a decline in silver prices coupled with the mining -out of the accessible top-side ores that had been cheap to mine Henceforth it had to work the S ! Ddeeper-lying sulfide ores, a more costly operation compounded by the greater difficulty of extractingsilver from this type of ore S ! D BiZdoM : Companies History Part 1Guillaume Delprat, a Dutch engineer and chemist whom BHP had brought to Australia fr om Europe,provided the solution to the problem of treating sulfide ores with his invention in 1902 of theflotation process This method and later variants enabled BHP and other Broken Hill companies to S ! Dextract silver, lead, and especially zinc from sulfide tailings, which had until then been deemedalmost worthless Delprat had become BHPs general manager in 1899 and under his careful but S ! Dimaginative stewardship BHPs productivity rose steadily S ! D@Team BiZdoM 58

BIZDOM : COMPANIES HISTORY PART 1 Delprat and BHPs directors insisted that an important fac tor in the companys success was the flexibility that the free contract system of employment allowed amid fluctuating and uncertain world metals markets They were staunch believers in loyalty to the company, hard work, and self -help, and S ! D held that these virtues rather than socialism or unionism were the real allies of the Australian worker The union movement disagreed with this analysis and in 1905 militants urged the NSW S ! D government not to renew BHPs leases at the Big Mine Two years later BHP announced that it could S ! D no longer honor the remainder of its existing wage agreements on the grounds that plunging metals prices made these unworkable S ! D Early in 1909 the AMA launched a new strike This time BHP stood alone, its intransigence and S ! D stubborn refusal to deal with the union having alienated it from the other Broken Hill companies S ! D The strike was marked throughout by exceptional violence and intimidation of scab labor brought in by BHP to work the mine When Australias Arbitration Court ruled against the company, the latter S ! D appealed to the High Court, unsuccessfully BHPs response was to delay the opening of the mine S ! D and then reduce the number of workers employed S ! D World War I Bringing Increased Demand, Labor Unrest Wartime demand for armaments and sheet steel ensured production at full capacity and guaranteed the steel mills early years At Broken Hill, however, inflation during World War I worsened S ! D conditions, producing strikes in 1915, 1917, and 1919, the last of which was settled in the unions favor, resulting in a new 35-hour work week and a rise in wage rates By this time, however, BHPs S ! D energies were focused on its expanding steel business and the Big Mine played a progressively smaller role in the companys calculations, closing altogether in 1939 and thereby ending BHPs association with Broken Hill S ! D In 1921 Delprat was succeeded by Essington Lewis, a mining engineer who had joined BHP in the first decade of the century and risen swiftly in the corporate hierarchy Lewis continued the policy of S ! D supporting the establishment of secondary manufacturers who would use BHP steel in their products, thus creating new customers for the company and new industries for Australia S ! D Challenges and Opportunities During the Great Depression Although BHP entered the Depression with an unusually small debt burden--Lewis disliked paying for new machinery with borrowed money--and an efficient steel operation, it was not immune from theBiZdoM : Companies History Part 1 | effects A collapse of world prices in steel, silver, and lead forced BHP to reduce p roduction levels S ! D and lay off large numbers of mill workers The Big Mine was shut down until a rise in metals prices S ! D made reopening worthwhile, and from 1930 until 1932 BHP did not pay dividends to its shareholders The company viewed with distrust the economic policies of Scullins Labour S ! D government, which it regarded as populist and shortsighted This attitude was mollified when the S ! D government sought to stimulate local industry by imposing a new round of duties on imports, and devalued the Australian currency to encourage Australian exporters These measures, in tandem with S ! D BHPs underlying financial strength and Lewiss policy of low -cost selling, ensured the companys survival S ! D Feedback at bizdomonline@gmail.com 59

BT Group plcKey Dates:1880: Telephone Company Ltd merges with Edison Telephone Company to form United S!DTelephone Company S!D1969: Post Office Telecommunications is formed S!D1981: The British Telecommunications Act is passed S!D1984: British Telecommunications plc becomes privatized S!D1994: British Telecom enters strategic alliance with MCI Communications to form ConcertCommunications Company S!D2001: BT Group plc is formed as a holding company S!DThe Birth and Growth of the Telephone Industry in England: 1869 -1969British Telecommunications administrative and technological roots are ming led with those of the U K S ! D S ! DPost Office and reach back into the second half of the 19th century, when inventors at home andabroad, such as Alexander Graham Bell, Thomas Edison, and Guglielmo Marconi, were applyingelectromagnetic principles to the development of practicable forms of telecommunications Out of S ! Dthis the modern telegraph, followed by the telephone, was born In 1850 the first submarine S ! Dtelegraph cable was laid across the English Channel In 1878 Bell demonstrated his newly patented S ! Dtelephone to Queen Victoria, and in 1879 Englands first telephone exchange opened in London It S ! Dwas in the United Kingdom, too, that the first international telephone call was made, in 1891,between England and France The telegraph and telephone were at first exploited by private S ! Denterprises, but they were gradually taken over by a U K government department, the General Post S ! D S ! DOffice The reversal of that nationalization process was completed in the early 1990s S ! D S ! DIn 1869 the Postmaster General was granted the exclusiv e right to transmit telegrams within the BiZdoM : Companies History Part 1United Kingdom At first the telephone was slow to catch on and was not regarded by the Post Office S ! Das a serious threat to its telegraphic network The first independent U K telephone service provider, S ! D S ! D S ! DTelephone Company Ltd , was set up in 1879 and in 1880 merged with its competitor, Edison S ! DTelephone Company, to form United Telephone Company Seeing that the telephone was beginning S ! Dto take customers away from its telegraph service, the Post Office embarked on a seri es of protectivemeasures, and in 1880 the government brought an action against the recently formed UnitedTelephone Company, claiming that it was operating in contravention of the Telegraph Act of 1869 S ! DThe High Court subsequently decided that the telephone was a form of telegraph The merger was S ! Drevoked, and telephone companies were required to be licensed by the telegraph monopoly holder,the Post Office S ! D@Team BiZdoM 60

BIZDOM : COMPANIES HISTORY PART 1 The next stage in the process of squeezing out competition and establishing a state telephone monopoly was the building up of the Post Offices own system In 1896 the Post Office completed its S ! D improved telephone network by taking over the trunk lines of National Telephone Company, the largest of its licensees, and started to set up its own local teleph one exchanges It was then decided S ! D that more national licenses would be granted National Telephone Company continued to operate a S ! D local service until its license expired in 1911, but in 1912 the Post Office was granted a monopoly on the supply of telephone services throughout the United Kingdom It took over all of National S ! D Telephone Companys exchanges and opened an automatic exchange in Epsom, south of London S ! D The Move Toward Privatization: 1969 -90 A landmark in the prehistory of BT was the Post Office A ct of 1969, which changed the status of the Post Office This former government department became a state public corporation under the S ! D Secretary of State for Industry The telecommunications services remained in the Post Office but S ! D were divided from the postal services into Post Office Telecommunications S ! D Three further events marked the telephone industrys move toward an environment of free competition First came the passage of the 1981 British Telecommunications Act, which took Post S ! D Office Telecommunications out of the Post Office, turning it into an autonomous, though still state - owned, body known as British Telecommunications Corporation or, more familiarly, British Telecom S ! D Second was the 1984 Telecommunications Act, by which BT was privatized, the tel ecommunications market was further liberalized, and a regulatory body was set up Third, the Duopoly Review in 1990 S ! D resulted in the governments 1991 decision to further increase telecommunications competition The S ! D government also decided to sell off its remaining shares in BT, although this decision was not influenced by the Duopoly Review S ! D Bacardi Limited From Rum Sales to Manufacturing, 1830 to 1875 Bacardi, the giant liquor conglomerate, began with the emigration of Facundo Bacardi y Maso from Spain in 1830 Born in Sitges,BiZdoM : Companies History Part 1 | S ! D Catalonia, Bacardi arrived in the Caribbean port city of Santiago de Cuba, then a Spanish colony populated by many fellow Catalans S ! D There the 14-year-old Bacardi began importing and selling wine S ! D While working for an Englishman named John Nunes, who owned a local distillery, Facundo started tinkering with ways to upgrade the quality of aguardiente (fire water) Also known as rumbullion (then S ! D shortened to "rum"), Facundo hoped to "civilize" the dark liquor from its early incarnations as a coarse, harsh liquid swilled by buccaneers As rum production had changed little in the last 200 S ! D Feedback at bizdomonline@gmail.com 61

or so years, Facundo decided it was time to elevate the spirit into something smoother and morerefined S ! DIn 1843 Facundo married a young woman named Amalia, the daughter of a French Bonapartistfighter, and soon began a family Around this time his rum experiments had paid off and he offered S ! Dsamples of his newfangled light rum to relatives and friends Facundos secret formula enabled him S ! Dto ferment, distill, and blend from molasses rum one could drink straight, almost like wine, withoutmixers or additives Since molasses was a byproduct of processing sugarcane, Cubas largest export, S ! Dthere were ample quantities around the island On February 4, 1862, Facundo, his brother Jose, and S ! Da French wine merchant joined forces to buy Nunes tin-roofed distillery for $3,500, which had thenecessities (a still of cast-iron, fermenting tanks, and aging barrels) for creating and selling a Bacardibrand of rum Buying the old distillery lock, stock, and barrel, Facundo also received an added bonus S ! Din the deal--a colony of fruit bats--that later came to represent the Bacardi name S ! DThe Bacardi enterprise was a family affair, and Facundos three sons --Emilio, Facundo (Jr ), and Jose-- S ! Djoined the company when they came of age and learned their fathers secret formula for makingwhat was fast becoming the Caribbeans finest rum Emilio, the oldest, worked in the office; Facundo S ! DJr worked in the distillery; and Jose, the youngest, eventually worked in selling and promoting his S ! Dfathers products Facundo Jr , in honor of his father and to celebrate the new family business, S ! D S ! Dplanted a coconut palm tree just outside the distillery As the Bacardi boys learned their fathers S ! Dtrade, another young man named Enrique Schueg y Chassin, who had been born the same year DonFacundo purchased the Santiago distillery, was maturing and would soon join both the business andthe family In the ensuing years, as the business thrived, young Facundo s coconut palm did, too, and S ! Dbecame an enduring symbol of the Bacardi family and its spirits operation S ! DJust before Don Facundo and his partners bought the Nunes distillery, an Australian named T S S ! D S ! D BiZdoM : Companies History Part 1Mort perfected the first machine-chilled cold storage unit Three years after Bacardi was established, S ! DThaddeus Lowe debuted the worlds first ice machine Though these two inventions seemed S ! Dcompletely unrelated to Don Facundos premium rum, they later helped Bacardi conquer the socialdrinking marketplace by making ice and cold mixers commonplace Yet such thoughts were far from S ! DDon Facundo and his familys minds, for they had no idea how widespread the appeal of theirsmooth, fine rum would one day become Instead, they greeted Bacardis increasing popularit y in S ! DSantiago and the neighboring villages as a pleasant surprise S ! D@Team BiZdoM 62

BIZDOM : COMPANIES HISTORY PART 1 As was proper in the day, customers brought their own jugs and bottles to the distillery, which Bacardi family members promptly filled and returned With business booming, Don Facundo decided S ! D the current method of distribution wasnt good enough and set out to find an alternative Meanwhile, S ! D back in Spain, Queen Isabella, who ascended the throne in 1843 at the age of 13, was deposed For S ! D Bacardi and his family, as with most Catalans living on the Spanish-controlled colony, the insurrection mirrored their own growing unrest As civil war raged in Spain in 1872, Emilio, who had become a S ! D Cuban freedom fighter, was caught and exiled to an island off the coast of Morocco During his S ! D absence, in 1875, hostilities grew and a rebellion swept through Cuba, though the family business was untouched Four years after his capture, Emilio returned to Cuba and learned Bacardi rum had S ! D earned a gold medal at the Philadelphia Exposition of 1876 S ! D A Changing La ndscape, 1877 to 1931 As the 1880s dawned, Don Facundo retired and turned Bacardi over to Emilio, Facundo Jr , Jose, and S ! D Enrique, who was now his son-in-law The companys distribution problems had been solved with a S ! D suggestion from Dona Amalia, to provide Bacardi products with a distinctive, easily recognized label S ! D As many of Santiagos residents couldnt read, Dona Amalia recommended using a symbol to represent Bacardi The Bacardi logo was then born, sporting a most unlikely mascot, the fruit bat S ! D S ! D Before the turn of the century, as Bacardi flourished, Cuba was again engaged in battle to gain its independence from Spain Emilio, fighting for his country, was banished a second time and Enrique S ! D went with him into exile The United States joined the fray after a mysterious explosion on the U S S ! D S ! D S ! D battleship Maine sparked the Spanish-American War in 1898 After defeating the Spanish fleet at S ! D Manila, the U S and Spain signed the Treaty of Paris, which ceded Cuba, Guam, the Philippines, and S ! D S ! D Puerto Rico to the U S for $20 million In 1901 Cuba became an independent republic, and Emilio S ! D S ! D S ! D returned home to the Bacardi family and business S ! D Emilio was elected mayor of Santiago while Bacardi continued buying sugarcane fields and expanding its operations through several bottling facilities In 1906 Emilio was elected to the Cuban Senate and S ! DBiZdoM : Companies History Part 1 | the next year Jose, the youngest Bacardi son who had represented the companys interests in Havana, died Though the family mourned his loss, the business continued to prosper and in 1910 S ! D Emilio returned to his fathers homeland to begin Bacardis first international venture: a new bottling facility in Barcelona, Spain By the end of the next decade on May 2, 1919, Compania Ron Bacardi, S ! D S A was incorporated with Emilio as president, and Facundo Jr and Enrique as vice presidents S ! D S ! D S ! D S ! D As Bacardi set out to conquer the world--especially the United States--with its premium rum, a roadblock called Prohibition stood in its way Though S ! D temperance had been gaining ground for the last several y ears, the Feedback at bizdomonline@gmail.com 63

Prohibition amendment was officially ratified less than four months earlier on January 16, 1919 If S ! Dthe Bacardis could not sell their spirits to the U S , nothing stopped Americans from coming to Cuba S ! D S ! Dfor liquor Havana soon became known as "the unofficial U S saloon" and Bacardi rum was one of S ! D S ! D S ! Dits biggest attractions Bacardis international sales were also strong in a world whose population S ! Dtopped 1 8 billion by 1922 This same year, both the family and the business suffered the loss of S ! D S ! Dpatriarch Emilio, followed two years later by Facundo Jr Enrique, though not a family member by S ! Dblood, took the reins of the burgeoning company and served as its president S ! DThe dawn of the 1930s brought further international expansion for Bacardi as its bottlin g operationin Spain was a huge success Realizing Bacardi rum could be distilled and sold from any facility with S ! Dthe appropriate equipment, Enrique began to open what soon became a network of distributionpoints First came the establishment of a new subsidiary in Mexico in 1931, which was nearly S ! Dbankrupt through a severe recession Enriques son-in-law, Jose Bosch, intervened and kept the S ! Doperation afloat until the economy improved and the small company turned profitable S ! DAfter Prohibition, 1933-59When Prohibition was repealed in December 1933 Bacardi was ready to fill the gap Enrique S ! Dpromptly sent his son-in-law Jose to New York City to pave the way for Bacardis distribution in theUnited States Back in Cuba the political climate was once again boil ing as Fulgencio Batista y S ! DZaldivar, the countrys army chief of staff, became Cubas de facto ruler after a military coup S ! DUnfettered by its tropical roots, Bacardi entered the U S marketplace in a bang--selling over 80,000 S ! D S ! Dcases in 1934 To save the company the United States expensive import duty tax (nearly $1 per S ! Dbottle), Jose Bosch decided to open another Bacardi facility in Old San Juan, Puerto Rico Under S ! DAmerican control since the Treaty of Paris in 1901, Puerto Rico was considered U S soil and its S ! D S ! Dexports duty free Under the name Bacardi Corporation, the new company soon moved to larger S ! Daccommodations across the bay in Catano BiZdoM : Companies History Part 1 S ! DThe 1940s brought several milestones for Bacardi, both in expansion and brand recognition Much of S ! Dthe companys U S business had begun through word-of-mouth praise from visitors to the Caribbean, S ! D S ! Despecially those flying Pan American Airways, which used Bacardi in some of its ads, "Fly Pan Am toCuba and you can be bathing in Bacardi in hours " To capitalize on Bacardis growing reputation and S ! Denhance its brand at the same time, Enrique and Jose initiated advertising on Bacardis excellentqualities as a mixer Two of the more popular variations were the Daiquiri, named after a Cuban S ! Dvillage where an American mining engineer mixed Bacardi, crushed ice, and lime juice in 1896; and@Team BiZdoM 64

BIZDOM : COMPANIES HISTORY PART 1 the Cuba Libre or Rum & Coke, created by an American army lieutenant in honor of Cubas new independence The latter concoction gained widespread attention when the Andrews Sisters made S ! D "Rum & Coca-Cola" a hit in 1944 S ! D The same year "Rum & Coca-Cola" sailed up the charts, Bacardi Imports was established in New York City to coordinate the increasing demand for Bacardi, and both Cuba and the United States joined the Allied war effort By the end of the decade, dark clouds loomed on the horizon for S ! D Bacardi In 1947, with the reintroduction of whiskey in the United States, rum sales plummeted 47 S ! D percent in a one-year period Next came the death of Enrique Schueg in 1950, at which time Jose S ! D Bosch assumed the role of CEO In 1953 when drinkers had become concerned over the caloric S ! D content of liquor, Bosch introduced a new advertising tact comparing the calories of a Daiquiri with those in a glass of milk This successful spin was soon followed by ad campai gns directed to blacks S ! D and Hispanics, and in 1956 the company broke barriers by using a woman in its ads, who advised homemakers to serve a Daiquiri with the evening meal S ! D It was around this time (there were two dissenting versions) that the first Pina Co lada was mixed in Puerto Rico, using Bacardi rum, varied fruit juices, and coconut milk As the 1950s came to an end, S ! D Cuba was once again seized by revolution--this time to unseat Batista, who had returned to power in 1952 Regarded by many as a puppet of the United States, whose continued interference in Cuban S ! D affairs spawned guerrilla uprisings, Batista ruled until 1959 when rebels led by Fidel Castro and his brother Che Guevara overthrew his dictatorship S ! D The New Bacardi, 1960 -89 Bosch, no fan of Batista, was shocked when the new Castro government seized Bacardis assets, valued at $76 million, in 1960 Luckily for Bacardi, it not only had S ! D its Mexican, Puerto Rican, New York, and recently established Brazilian operations to fall back on, but itsBiZdoM : Companies History Part 1 | registered trademark (which Castro tried to seize, to no avail) Bacardis shareholders, all descendants of Don S ! D Facundo, reconstituted the company in 1960 as Bacardi & Company Limited, headquartered in Nassau, the Bahamas Another company, Bacardi InternationalS ! D Limited, was also formed and headquartered in Bermuda In 1962 the company sold 10 percent of S ! D its shares in an IPO (initial public offering) S ! D Feedback at bizdomonline@gmail.com 65

Trying to stave off competitors with Bacardis reputation as a mixer, the company launched a newadvertising campaign once again expounding its rums versatility "Enjoyable always and all ways" S ! Dwas supposed to be taken literally, to use Bacardis light -colored rum as a substitute for anything,even vodka in heavyweight drinks like highballs The formula worked and Bacardis sales grew by 10 S ! Dpercent annually throughout the 1960s, when the company finally broke into the top ten of distilledspirits brands In 1964 Bacardi sold over one million cases of rum; this figure doubled by 1968 S ! D S ! DBy the end of 1970, 2 6 million cases of Bacardi were sold Aiming to further dominate the U S S ! D S ! D S ! D S ! Dspirits market, Bacardi aggressively campaigned its rum as the mixer of choice, featured in jointpromotions with Coca-Cola, Canada Dry Ginger Ale, Dr Pepper, 7Up, Pepsi, Perrier, and Schweppes S ! Dtonic water In a well-played game of one-upmanship, Bacardi won the battle against Smirnoff vodka S ! Das the nations biggest-selling distilled spirit In 1976 after a dispute with the Bacardi family, Jose S ! DBosch resigned as president of the company The following year Bosch and a group of his supporters S ! Dsold their company stock (amounting to 12 percent or so) to an outsider, Hiram Walker S ! DUnfortunately, this break with family tradition was the first in a series of squabbles that rocked theBacardi empire over the next decade-and-a-half S ! DBajaj Auto LimitedOriginsThe Bajaj Group was formed in the first days of Indias independence from Britain Its founder, S ! DJamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to him as a fifthson Whenever I spoke of wealthy men becoming the trustees of their wealth for the common good I S ! Dalways had this merchant prince principally in mind, said the Mahatma after Jamnalals death S ! D BiZdoM : Companies History Part 1Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942 Kamalnayan, S ! Dhowever, was preoccupied with Indias struggle for independence After this was achieved, in 1947, S ! DKamalnayan consolidated and diversified the group, branching into cement, ayurvedic medicines,electrical equipment, and appliances, as well as scooters S ! DThe precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading Ltd It S ! Dbegan selling imported two- and three-wheeled vehicles in 1948 and obtained a manufacturing@Team BiZdoM 66

BIZDOM : COMPANIES HISTORY PART 1 license from the government 11 years later The next year, 1960, Bajaj Auto became a public limited S ! D company S ! D Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy In 1960, at the S ! D age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its fir st two- wheelers the next year S ! D Rahul Bajaj became the groups chief executive officer in 1968 after first picking up an MBA at Harvard He lived next to the factory in Pune, an industrial city three hours drive from Bombay The S ! D S ! D company had an annual turnover of Rs 72 million at the time By 1970, the company had produced S ! D 100,000 vehicles The oil crisis soon drove cars off the roads in favor of two -wheelers, much cheaper S ! D to buy and many times more fuel-efficient S ! D A number of new models were introduced in the 1970s, including the three-wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and three -wheeled, rear engine Autorickshaw in 1976 and 1977 Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal year S ! D aloneS ! D The technical collaboration agreement with Piaggio of Italy expired in 1977 Afterward, Piaggio, S ! D maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales in the United States, United Kingdom, West Germany, and Hong Kong Bajajs scooter exports S ! D plummeted from Rs 133 2 million in 1980-81 to Rs 52 million ($5 4 million) in 1981-82, although S ! D S ! D total revenues rose five percent to Rs 1 16 billion Pretax profits were cut in half, to Rs 63 million S ! D S ! D S ! D New Competition in the 1980s Japanese and Italian scooter companies began entering the Indian market in the early 1980sBiZdoM : Companies History Part 1 | S ! D Although some boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades Its customers liked the durability of the product and the ready S ! D availability of maintenance; the companys distributors permeated the country S ! D The Bajaj M-50 debuted in 1981 The new fuel-efficient, 50cc motorcycle was immediately S ! D successful, and the company aimed to be able to make 60,000 of them a year by 1985 Capacity S ! D was the most important constraint for the Indian motorcycle industry Although the countrys total S ! D production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival Lohia Machines had difficulty meeting demand Bajaj Autos advance orders for one of its new mini- S ! D Feedback at bizdomonline@gmail.com 67

motorcycles amounted to $57 million Work on a new plant at Waluj, Aurangabad commenced in S ! DJanuary 1984 S ! DThe 1986-87 fiscal year saw the introduction of the Bajaj M -80 and the Kawasaki Bajaj KB100motorcycles The company was making 500,000 vehicles a year at this point S ! D S ! DAlthough Rahul Bajaj credited much of his companys success with its focus on one type of product,he did attempt to diversify into tractor-trailers In 1987 his attempt to buy control of Ahsok Leyland S ! Dfailed S ! DThe Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later S ! DAbout this time, the Indian government was initiating a program of market liberalization, doing awaywith the old license raj system, which limited the amount of investment any one company couldmake in a particular industry S ! DA possible joint venture with Piaggio was discussed in 1993 but aborted Rahul Bajaj told theS ! DFinancial Times that his company was too large to be considered a potential collaborator by Japanesefirms It was hoping to increase its exports, which then amounted to just five percent of sales The S ! D S ! Dcompany began by shipping a few thousand vehicles a year to neighboring Sri Lanka and Bangladesh,but soon was reaching markets in Europe, Latin America, Africa, and West Asia Its domestic market S ! Dshare, barely less than 50 percent, was slowly slipping S ! DNew Tools in the 1990s BiZdoM : Companies History Part 1Still, intense competition was beginning to hurt sales at home and abroad during the calendar ye ar1997 Bajajs low-tech, low-cost cycles were not faring as well as its rivals higher -end offerings, S ! Dparticularly in high-powered motorcycles, since poorer consumers were withstanding the worst of therecession The company invested in its new Pune plant in order to introduce new models more S ! Dquickly The company spent Rs 7 5 billion ($185 million) on advanced, computer-controlled machine S ! D S ! Dtools It would need new models to comply with the more stringent emissions standards slated for S ! D2000 Bajaj began installing Rs 800 catalytic converters to its two-stroke scooter models beginning in S ! D1999 S ! D@Team BiZdoM 68

BIZDOM : COMPANIES HISTORY PART 1 Although its domestic market share continued to slip, falling to 40 5 percent, Bajaj Autos profits S ! D increased slightly at the end of the 1997-98 fiscal year In fact, Rahul Bajaj was able to boast, My S ! D competitors are doing well, but my net profit is still more than the next four biggest companies combined Hero Honda was perhaps Bajajs most serious local threat; in fact, in the fall of 1998, S ! D Honda Motor of Japan announced that it was withdrawing from this joint venture S ! D Bajaj Auto had quadrupled its product design staff to 500 It also acquired technology from its S ! D foreign partners, such as Kawasaki (motorcycles), Kubota (diesel engines), and Cagiva (scooters) S ! D Hondas annual spend on R & D is more than my turnover, noted Ruhal Bajaj His son, Sangiv Bajaj, S ! D was working to improve the companys supply chain management A marketing executive was lured S ! D from TVS Suzuki to help push the new cycles S ! D Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999 These, S ! D and a surge in consumer confidence, propelled Bajaj to sales records, and it began to regain market share in the fast-growing motorcycle segment Sales of three-wheelers fell as some states, citing S ! D traffic and pollution concerns, limited the number of permits issued for them S ! D In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million The Italian S ! D firm had exited a relationship with entrepreneur Deepak Sing hania and was looking to reenter the Indian market, possibly through acquisition Piaggio itself had been mostly bought out by a German S ! D investment bank, Deutsche Morgan Grenfell (DMG), which was looking to sell some shares after turning the company around Bajaj attached several conditions to his purchase of a minority share, S ! D including a seat on the board and an exclusive Piaggio distributorship in India S ! D Banana Republic Inc S ! DBiZdoM : Companies History Part 1 | The Early Years: Selling a Concept As Well As Clothing The company owes it origins to Mel Zieglers search for a replacement for his well-worn military surplus jacket S ! D Ziegler finally purchased a British Burma jacket in a Sydney "disposal" store, which his wife altered to downplay the garments military look and "play up its Feedback at bizdomonline@gmail.com 69

sensibility as a comfortable, utilitarian, everyday garment," as stated in Banana Republics historicaldocuments Family and friends admired the jackets look, prompting the couple to create and open S ! Dthe Banana Republic Travel and Safari Clothing Company in Mill Valley, San Francisco S ! DFrom the start, Banana Republic sold a concept as well as clothing; the look was unique, and tradedress identity strong The companys original catalogues stood out for their ink and watercolor S ! Ddrawings of flight jackets, photo-journalists vests, paratrooper briefcases, and gurkha shorts --all ofwhich were accompanied by travelogue-type copy highlighting the theme of travel and adventure All S ! Ditems were constructed of natural fibers As the premier outfitters of travel and safari wear from S ! D1978-1983, Banana Republic was a forerunner in the specialty fashion market which appealed tothe 25-44 year old crowd of young professionals S ! DAcquired By The Gap in the 1980sBy late 1983, when The Gap--under president Millard S Drexler and chairman Donald G S ! D S ! DFisher&mdashquired Banana Republic, there were five Banana Republic stores in California, and thecompanys annual sales had grown to $10 million The new subsidiary was an immediate boon to the S ! Dthen-floundering Gap, which was struggling to broaden its market beyond a well-established teenagecustomer base Banana Republic experienced meteoric sales growth and rapid expansion for the next S ! Dthree years, with sales per square foot peaking in 1986 at about $750, compared to an industryaverage of about $235 New stores were opened whose interiors were designed to recreate the S ! Dadventurous setting of the outback Bush planes hung from ceilings; thatched-roofed huts, jeeps and S ! Dersatz wild animals were arranged on the display floor Catalogue publications increased The S ! D S ! DZieglers stayed on as president and vice president of the new Banana Republic subsidiary, withcreative autonomy to run the company S ! D BiZdoM : Companies History Part 1But beginning in 1986, amid a period of apparel industry slump, Banana Republics safari and khakiconcept began to lose its appeal In-store sales, which had been at 15 percent of The Gap totals and S ! D20 percent of its profits, shrank as the product line rapidly lost popularity Gap stock sold at a "liars S ! Ddiscount," with a price-earnings ratio more than 10 percent below the industrys Trips, a travel S ! Dmagazine intended to promote the Banana Republic line, was launched and discontinued after itsfirst issue and the resignation of two associate editors The Gap gave the management at Banana S ! DRepublic most of 1987 to make adjustments, but sales continued to slide Only 15 new stores were S ! Dopened in 1987, instead of the planned 25 S ! D@Team BiZdoM 70

BIZDOM : COMPANIES HISTORY PART 1 Banana Republic, which had been the hottest retail concept around, was eating away at its parent companys profits, showing a loss for 1988 despite the opening of many new stores Sales totaled S ! D only between 10 and 15 percent of The Gaps totals in 1987 and 1988 In an attempt to shift the S ! D company from a purveyor of safari wear to traditional travel and casual wear, Drexler took on th e additional role of CEO of Banana Republic, succeeding Fisher --who remained chairman and chief executive of The Gap The Gaps management decided to get away from Banana Republics basics S ! D look, and tried out new items in new colors, but the unpopularity o f the new merchandise, coupled with inadequate inventories, continued to hobble Banana Republic In April of 1988, Mel and Patricia S ! D Ziegler resigned, citing "fundamental creative and cultural differences with the management of The Gap," according to an April 1988 article which appeared in the Daily News Record S ! D The Turn of the Decade and A New Corporate Identity The search for a solid corporate identity began to take shape in 1988, when The Gap brought in a new management team, including Tasha Polizzi, formerly of Ruff Hewn and Polo/Ralph Lauren, as vice-president and director of design and product at Banana Republic Although Polizzi stayed in the S ! D post for only a year, citing creative differences in updating the direction of the chains merchandise, the new team made some successful moves, including a decisive shift away from the safari motif In S ! D an effort to maintain traffic in the chains then-100 stores, it knocked down prices substantially to clear out old merchandise and to develop and test new mercha ndise The new lines, which included S ! D brighter-colored casual wear and cruise line apparel, were moved to the front of the stores, while the more traditional khaki and safari apparel were placed in the back Stores were refurbished to reflect S ! D a more sophisticated, modern sensibility In 1989, the catalogue was discontinued S ! D S ! D The early nineties saw a positive turn-around for Banana Republic, under the direction of Richard L S ! D McNally, its executive vice-president and top official Menswear sales were much improved with the S ! D first comparable-sales increase in five quarters occurring in the first quarter of 1990 The chain S ! D generated same-store sales growth in line with The Gaps total of 5 percent beginning in 1991, a time during which yearly sales at Banana Republic were estimated at about $300 million Banana S ! D Republics operating income was higher in 1992 than the previous year, and the chain expanded toBiZdoM : Companies History Part 1 | include 162 stores nationwide The company began further efforts at diversifying its product lines, S ! D and innerwear, sleepwear and accessories were added to the mens and womens lines as well as a variety of looks suitable for the office Advertising campaigns were adopted to sell the companys S ! D new relaxed, urban lifestyle image Two received notoriety for their exceptional quality, including one S ! D which specifically targeted the gay community S ! D Continuing Growth in the 1990s Feedback at bizdomonline@gmail.com 71

By 1994, Banana Republic was racking up the biggest gains of any subsidiary at The Gap, andformulated plans to open 20 new stores a year for the next several years In 1995, it opened its first S ! Dstore outside the U S in Alberta, Canada, and rolled out its Body Care collection In 1996, it S ! D S ! D S ! Dintroduced separate gender-specific concept stores, Banana Republic Men and Banana RepublicWomen The womens mix had by then grown to include career suiting, casual wear, shoes, belts, S ! Dhandbags, lingerie, and luggage In keeping with its story line, all items in the body care collection S ! Dwere perfumed with a scent called "Classic " S ! DMenswear still accounted for 50 percent of all sales, and stores had begun to offer free alterationsand personal shopping assistants Home merchandise items were introduced into a handful of stores S ! Dduring the holiday season, such as formally dressed tables and beds in fabrics popula r from themens and womens clothing collections Some negative press was garnered when Banana Republic S ! Dran an ad campaign featuring Senator Ben Nighthorse Campbell at a time when Fisher hadlegislative business before the Senate, and again when several a rticles appeared citing the fact thatBanana Republic employed maquiladora workers to produce some of their goods But the company S ! Dtook both criticisms in stride, without compromising its positive trend In 1997, "BR Athletic" was S ! Dintroduced, adding athletic clothing and footwear, a move mirrored by mall favorites and competitorssuch as Eddie Bauer, L L Bean and J Crew Donald Fisher was named National Retail Federations S ! D S ! D S ! D S ! DGold Medal winner, and Jeanne Jackson moved into the position of chief executive of ficer mid-year,while at the same time announcing the companys intent to open 30 stores a year to add to the 226then in existenceS ! DBanca Monte dei Paschi di Siena SpAKey Dates: BiZdoM : Companies History Part 11467: The first monte di pieta (nonprofit bank), designed to end usury by providing lowinterest loans, is created S!D1472: The city-state of Siena establishes its own Monte di Pieta S!D1624: After Siena becomes part of the Grand Duchy of Tuscany, the bank changes itsname to Banca Monte dei Paschi di Siena (BMPS) S!D1900s:The unification of Italy encourages BMPS to expand into the region around Siena S!D1929: BMPS first steps into the national market by acquiring control of Banca Toscano S!D@Team BiZdoM 72

BIZDOM : COMPANIES HISTORY PART 1 Italy represented the heart of the banking world in the Renaissance era, as the city -states of Milan, Genoa, Venice, Florence, and Siena dominated world trade Much of the merchant and exploration S ! D activities of the time, as well as many wars of the period, were financed by the great family -owned banking houses, the so-called "banchi grossi" represented especially by the Medici family These S ! D banks, however, tended to act as financiers only for the countrys wealthy noble, religious, and political elite, and often served only a limited number of clients --a situation that left them highly vulnerable to political and financial reversals S ! D Filling the gap for "lesser" clients were the "banchi in mercato," who served as moneychangers, but also provided certain services that developed into the modern banking system, such as holding deposits, transferring funds from one person to another, and debt-paying services These "merchant S ! D bankers," generally a single person set up at a table with a coin purse and a ledger book, became an essential part of international commerce during the Renaissance period S ! D The merchant bankers, however, did not provide one essential service to Italys poor farmers, artisans, and traders--loans Yet lending was an area heavily constrained by canon law on usury As a S ! D S ! D result, the lower classes were forced to turn to unregulated and often un scrupulous moneylenders, who charged interest rates as high as 40 percent S ! D In the mid-15th century, the Franciscan Friars petitioned the Vatican for permission to establish a different kind of loan bank that would offer loans at rates high enough only to cover their costs S ! D These nonprofit banks became known as the "monti di pieta," because they took "pity" on the poor S ! D The first began operating in 1467, in Perugia, offering small loans in exchange for interest rates as low as 5 percent Customers provided collateral for the loans, usually by leaving jewelry or clothing S ! D S ! D These banks now became known as "banchi di pegni" or pawnbrokers S ! D Banchi di pegni soon began appearing throughout Italy --and later inspired similar banks throughout Europe--and were for the most part set up by Franciscans The city-state of Siena, however, took a S ! D different approach, and instead founded its own Monte di Pieta in 1472 The bank was backed by aBiZdoM : Companies History Part 1 | S ! D 5,000-florin loan from the city, raised through levying taxes Members of the citys most prominent S ! D family were then granted seats on the board Unlike at other banks, which were usually dominated S ! D by a single family, leadership at the Siena bank rotated among the families In this way, the bank S ! D was guided only by the best members of each generation S ! D A large proportion of the Siena banks clientele were farmers in the surrounding area The rich S ! D agricultural climate of the region also gave Siena a remarkable degree of stability, since lending to farmers held far lower risk than backing other trade and commercial activities Initially the bank S ! D accepted clothing and jewelry as collateral, but gradually began taking land as collateral as well In S ! D Feedback at bizdomonline@gmail.com 73

this way, the bank developed into a powerful landholder, acquiring lands when customers defaultedon their loans Among notable properties that entered the banks real estate portfolio was the famed S ! DFontanafredda estate and its Barolo wines, which became the banks property in 1931 S ! DAfter Siena became part of the Grand Duchy of Tuscany in 1624, the ban k changed its name toMonte dei Paschi di Siena (BMPS) The addition of the word "paschi" (pasture) reflected the scale of S ! Dthe banks land portfolio by then With the unification of Italy in the late 19th century, the bank S ! Dbegan extending beyond Siena, although remaining close to its home region In the 1900s, however, S ! DBMPS began to expand into the wider national market In 1929, the bank engineered the merger of S ! DCredito Toscano and Banca di Firenze, and then acquired a major stake in the resulting entity, BancaToscana SpA Later known as Mediocredito Toscana, then MPS Merchant, that bank became a S ! Dspecialist in mid-term loans to the industrial sector BMPS added a stake in another bank, Istituto S ! DNazionale per il Credito Agrario, later renamed MPS Banca Verd e, which became the groupsagricultural loans specialist S ! DModern Italian Banking LeaderWhile Italys banking sector collapsed amid the economic chaos of the early 1930s, BMPS remainedfinancially solid A major reason for its stability came from the banks longstanding policy of reserving S ! Das much as half--and often much more--of a years profits in its treasury The remaining funds were S ! Dthen spent on public works projects benefiting Siena and the surrounding area The bank also was S ! Dcredited with maintaining a prudent, and generally risk-averse, loan portfolio--a policy adopted inpart because of the banks losses from participating in the funding of Christopher Columbussexpedition in 1492 S ! D BiZdoM : Companies History Part 1Barclays plc1728: John Freame forms a Quaker goldsmithing and banking firm S!D1736: James Barclay becomes a partner S!D1896: Twenty private banks merge to form Barclay and Company Ltd S!D1918: The company merges with the London, Provincial and South Western Bank S!D1968: Barclays merges with Martins Bank S!D1984: The company changes its name to Barclays plc S!DBarclays takes it symbol, the spread eagle, from the Quaker goldsmithing and banking firm foundedby John Freame in 1728 In 1736, James Barclay, Freames brother-in-law, became a partner in the S ! DBlack Spread Eagle When two more of Barclays relatives joined the firm --Silvanus Bevan in 1767 S ! D@Team BiZdoM 74

BIZDOM : COMPANIES HISTORY PART 1 and John Henton Tritton in 1782--the banking firm took the name by which it would be known for more than a century: Barclays, Bevan & Tritton While fledgling joint-stock banks outside London S ! D struggled to establish themselves in the late 18th and early 19th centuries, Barclays, Bevan & Tritton was still occupied with the well-established and highly lucrative commercial life of London S ! D A series of legislative changes enacted in the late 19th century created a new banking climate that threatened the existence of private banks such as Barclays First, the Bank Charter Act of 1826 S ! D allowed banks with more than six partners to be formed only outside London In 1833, the S ! D geographical restriction was removed Stockholders of new joint-stock companies were granted S ! D limited liability for the first time in 1854 Finally, in 1879, existing joint-stock associations were S ! D allowed to convert to a limited-liability structure S ! D Mergers in Late 19th an d Early 20th Centuries As a result of these legislative changes, provincial limited -liability joint-stock companies started picking off private banks After lengthy negotiations, three of the largest Quaker -run banking firms-- S ! D Barclays (which had become Barclays, Tritton, Ransom, Bouverie & Company after a merger in 1888), Jonathan Backhouse & Company, and Gurneys, Birkbeck, Barclay & Buxton, along with 17 smaller Quaker-run banks, agreed to merge and form a bank large enough to resist takeover attempts Barclays took its modern form in 1896 when the 20 private banks merged to form Barclay S ! D and Company, Ltd , a joint-stock association with deposits totaling an impressive £26 million This S ! D S ! D marked the beginning of Barclays tradition of service to farmers and f ishermen S ! D Francis Augustus Bevan, grandson of Silvanus Bevan, served as the new banks first chairman for 20 years The companys structure and course, however, were directed for its initial 40 years by S ! D Frederick Crauford Goodenough, as first secretary, until 1917, and then as chairman after Bevans retirement until his own death in 1934 Goodenough was the only chairman recruited from outside S ! D the original founding families until 1987 Recruited from the Union Bank of London, Goodenough S ! D remained aloof from family controversies and quickly proved his merit S ! D Goodenoughs first task was to meld the constituent banks into a single enterprise He took a S ! D decentralized approach that was to be Barclays hallmark for most of the 20th century Each S ! D member bank was independently operated under the control of its own board of directors Senior S ! D partners of the constituent banks were given a seat on the Barclays board In this way, longstanding S ! D relationships between each member bank and its customers were maintained, and the new company took advantage of the knowledge and experience of its leaders S ! DBiZdoM : Companies History Part 1 | At the same time, Goodenough initiated a series of mergers which eventually made Barclays one of the largest banks in Great Britain In its first 20 years, Barclays acquired 17 private banks S ! D throughout England, including Woods and Company of Newcastle upon Tyne in 1897, Bolitho Bank in Cornwall, and United County Banks, its first joint -stock bank acquisition, in 1916 The banks S ! D merger with the London, Provincial and South Western Bank in 1918 made it one of the Big Five British banks During this period, Barclays merged with 45 British banks and its deposit base grew to S ! D £328 million S ! D This era of banking amalgamations came to an end in 1919, when the Colwyn Committee recommended, and banking authorities unofficially adopted, limitations on previously unregulated bank mergers The committee suggested that thenceforth the Bank of England and the treasury S ! D Feedback at bizdomonline@gmail.com 75

approve only those mergers that provided important new facilities to customer s or secured significantterritorial gains for larger banks Mergers were no longer approved if they resulted in a significant S ! Doverlap in the areas served by constituent banks without countervailing benefits to customers or ifthey would result in "undue prominence" for a larger bank After the Colwyn Committee report, S ! Dmergers were increasingly difficult to justify, and the consensus was that mergers among the Big Fivewould not be approved S ! DInternational Expansion in the 1910s and 1920sAfter Barclays expansionist phase ended, Goodenough turned his attention to international bankingoperations Barclays first international venture took place in 1914 when it established its French S ! Dsubsidiary, Cox & Company Goodenough had a vision of a network of Barclay s banks spanning the S ! Dglobe to the greater glory of the British Empire As early as 1916, he started preparations for S ! Dworldwide banking by acquiring the shares of the Colonial Bank, established in 1836 to providebanking services in the West Indies and British Guiana The Colonial Banks charter was extended by S ! Dspecial legislation to British West Africa in 1916 and then worldwide in 1917 S ! DImmediately after World War I, Goodenough began negotiations with the National Bank of SouthAfrica Ltd and the Anglo-Egyptian D C O , operating in the Mediterranean Despite the opposition S ! D S ! D S ! D S ! D S ! Dfrom the Bank of England, which feared Barclays would become overextended, Goodenoughengineered the 1925 merger of the two banks with the Colonial to form Barclays Bank (Dominion,Colonial & Overseas), later renamed Barclays Bank (D C O ) Although Goodenough never realized S ! D S ! D S ! D S ! Dhis dream of establishing banks throughout the British Empire, for decades Barclays was the onlyBritish bank to combine domestic business with a widely dispersed in ternational branch network S ! DA contemporary of Goodenough speculated that the chairman became interested in expandingBarclays international operations because domestic growth was very limited Despite this stagnation S ! Dand later the Great Depression, Goodenoughs plan did not result in a disastrous overextension of thebanks assets S ! DBarclays survived the Great Depression relatively intact to take its place as a leading wartimefinancier Goodenough died in 1934 and was replaced by William Favill Tuke, who was in turn S ! Dreplaced in 1936 by Edwin Fisher Fisher saw Barclays through the boom years of World War II S ! D S ! D BiZdoM : Companies History Part 1When Fisher died in 1947, he was replaced by William Macnamara Goodenough S ! DIn 1951, Anthony William Tuke, the son of William Favill Tuke, became cha irman following WilliamGoodenoughs retirement that year A W Tuke was essentially conservative but encouragedS ! D S ! D S ! Dinnovations, even those he personally disliked, that were potentially beneficial to the bank Under S ! DTukes leadership, Barclays became Britains largest bank, surpassing the Midland Bank in the late1950s Barclays was also a leader in introducing new banking technology In 1959, Barclays was the S ! D S ! Dfirst British bank to use a computer in its branch accounting; it also introduced the worlds firstautomatic cash-dispensing machine and started a plastic revolution in Britain by introducing theBarclaycard in 1966 S ! D@Team BiZdoM 76

BIZDOM : COMPANIES HISTORY PART 1 Barclays sold its California banking subsidiary in 1988 to Wells Fargo The following year, Barclays S ! D sold its U S consumer finance unit to Primerica (later known as Travelers) S ! D S ! D S ! D Barnes & Noble, Inc S ! D Early Decades The Barnes familys history in the book business started in 1873, when Charles Montgomery Barnes went into the second-hand book business in Wheaton, Illinois Barnes soon S ! D moved to Chicago, selling new and used books By 1894 Barness firm, reorganized as C M Barnes S ! D S ! D S ! D Company, dealt exclusively in school books In 1902 C M Barness son, William R Barnes, became S ! D S ! D S ! D S ! D president of the firm, and he continued the business in partnership wit h several other men The S ! D younger Barnes sold his interest in his fathers company in 1917, when he moved to New York In S ! D New York, he acquired an interest in the educational bookstore Noble & Noble, which was soon renamed Barnes & Noble Though Mr Noble withdrew from the business in 1929, the name Barnes S ! D S ! D & Noble stuck S ! D The companys early business was wholesaling, selling mainly to schools, colleges, libraries, and dealers Barnes & Noble entered the retail textbook trade somewhat reluctantly A report in College S ! D S ! D Store magazine recounted that single book customers were tolerated, but that the stores counters and display shelves functioned as barricades against their encroachment Eventually the store took a S ! D building on Fifth Avenue that included a small retail space The public then "launched a campaign of S ! D book buying that soon banished all doubt as to the need for a general retail textbook house in New York " Barnes & Noble opened a large retail store on Fifth Avenue and 18th Street, and this became S ! D the companys flagship The quarters were enlarged and remodeled in 1941, and the store set the S ! D standard for college bookstores S ! D Barnes & Noble served the students of hundreds of New York City schools and colleges, and the store had to operate at top efficiency to accommodate the rush for textbooks at the beginning of each semester In 1941 the store instituted S ! D a "book-a-teria" service that was soon picked up by other college bookstores A clerk handed the customer a sales slip S ! D as he entered the store Purchases were recorded on the slip S ! D by one clerk, money taken by another, and wrapping and bagging done by another Barnes & Noble installed a S ! D telephone service that was quite advanced for the time, with five lines manned by specially trained staff The New York S ! D store was also a pioneer in the use of "Music by Muzak,"BiZdoM : Companies History Part 1 | with the piped-in music interrupted at 12-minute intervals by announcements and advertising Staff during the textbook S ! D rush season sometimes numbered over 300, and the store boasted a stock of two mi llion books S ! D The successful retail division continued alongside Barnes & Nobles original business of wholesaling to schools and libraries The company also ran an import and an export division, an out -of-print book S ! D service, and published several series of nonfiction books, including the College Outline Series of study guides In 1944 Barnes & Noble began putting out childrens educational books after it took over the S ! D publishing firm Hinds, Hayden & Eldredge The company also opened branches in Brooklyn and S ! D Chicago, and managed an outlet for used books and publishers remainders called the Economy Book Store S ! D Feedback at bizdomonline@gmail.com 77

Barnes & Noble operated on a grand scale from the 1940s onward Its wholesale textbook division S ! Dbought used books from around 200 campus bookstores all across the East and Midwest The S ! Dflagship retail store earned a place in the Guinness Book of World Records in 1972 as "the WorldsLargest Bookstore," and Barnes & Noble also claimed this store did the largest dollar volume of anyretail bookstore in the country S ! DBut Barnes & Noble began to grow in more ways when it came under the sway of a new youngowner, Leonard Riggio Riggio began his stellar career in the book business at age 18, when he was a S ! Dpoorly paid clerk at the New York University bookstor e Riggio initially studied engineering at night at S ! Dthe university, and in some sense he was unprepared for working with books He recalled being S ! Dembarrassed by a customer who asked for a copy of Moby Dick --Riggio had never heard of it S ! DNevertheless, he caught on to bookselling like no one else In 1965, when he was only 24, Riggio S ! Dborrowed $5,000 to open his own college bookstore, the Waverly Book Exchange Though his store S ! Dwas only one-eighth the size of the official NYU bookstore, he soon rivalled his ol d employers sales S ! DHe offered exceptional service to his student customers, airlifting textbooks to the store if necessary S ! DThe success of the Waverly Book Exchange allowed Riggio to buy or open ten more collegebookstores over the next several years S ! DArrival of Riggio: 1971 When Leonard Riggio set his sights on Barnes & Noble, the venerablebookstore was in a slump President John Barnes, grandson of the founder, had died in 1969, and S ! Dthe retail and wholesale divisions of the company were purchased by a conglomerate called Amtel,which made toys, tools, and various other products Business declined under the new management, S ! Dand Amtel decided to sell In 1971 Leonard Riggio purchased Barnes & Noble from Amtel for S ! D$750,000 He quickly changed the names of his ten other bookstores to Barnes & Noble, and S ! Drevitalized the old Fifth Avenue store S ! DThe new owner made Barnes & Noble an educational bookstore with a broader focus that includedall kinds of how-to and nonfiction books Riggio believed that more people read books for information S ! Dthan for entertainment, and he changed the setup of the flagship store to give customers easieraccess to books they might want He organized the stock into new, more specific categories, for S ! Dexample dividing the traditional category of philosophy into yoga and mysticism Other sections of S ! Dspecial interest books included cooking, Judaica, handyman books, study aids, and dictionaries Riggio S ! Dalso opened a special childrens section in the Fifth Avenue store, which, like the adult sections,emphasized educational books BiZdoM : Companies History Part 1 S ! DUnder Leonard Riggios management, Barnes & Noble expanded to include stores in New York, NewJersey, and Pennsylvania By 1976, the company leased and operated 21 campus bookstores, and the S ! Dcombined retail and wholesale divisions brought in $32 million in sales His early success led Riggio S ! Dto gamble on a new kind of bookstore--the book supermarket Across the street from the old Fifth S ! DAvenue Barnes & Noble, Riggio opened a giant sales annex that sprawled over three buildings All S ! Dbooks at the annex were discounted between 40 and 90 percent, even new books and bestsellers S ! DShoppers spent hours piling bargains into shopping carts, as Riggio explained to Publishers Weeklythat he had "set the customer free in an unintimidating atmosphere to roam over a vast space " The S ! Dprairie-like annex included fiction, textbooks, childrens books, reference books, art books, and giftbooks Corners were devoted to books on special topics ranging from Latin America to transportation, S ! D@Team BiZdoM 78

BIZDOM : COMPANIES HISTORY PART 1 and huge black and yellow signs directing customers to different categories could be read from 176 feet away Riggio claimed that most of Barnes & Nobles customers did not intend to read the books S ! D they bought, and the casual, warehouse atmosphere of the s ales annex was geared to the everyday shopper, not the scholar or bibliophile It was a marketing technique that worked brilliantly S ! D S ! D Barnes & Nobles thriving sales encouraged the company to grow and innovate In 1979 Barnes & S ! D Noble acquired a chain of retail stores called Bookmasters, and then bought up Marboro Books, Inc , S ! D a remainder company with discount retail outlets Barnes & Noble operated a chain of Supermart S ! D Books which serviced drugstore and supermarket book departments, and ran the Missouri Boo k Co , S ! D selling used college textbooks Barnes & Noble also more than tripled its college store leases in theS ! D mid-1980s, increasing from 40 in 1983 to 142 in 1986 S ! D B Dalton Acquisition: 1986 Total sales grew to about $225 million in 1985, and the next ye ar S!D Barnes & Noble made a major acquisition For a price estimated at around $300 million, Barnes & S ! D Noble bought B Dalton Bookseller, a bookstore chain with 798 outlets, from Dayton Hudson S ! D Corporation B Dalton was the second biggest chain bookstore, behind Waldenbooks, and its sales S ! D S ! D were estimated at $538 million in 1985 The acquisition put Barnes & Noble in the second place S ! D spot, and the company continued to acquire chains In March 1990 Barnes & Noble purchased an S ! D upscale chain of 40 bookstores, Doubleday Book Shops, for an estimated $20 million A few months S ! D later, the company became sole owner of a Texas and Florida chain of discount bookstores called Bookstop S ! D Barnes & Noble had used the name BDB Corp for the holding company that owned Barnes & Noble, S ! D Inc , B Dalton, and its other businesses Leonard Riggio was the majority owner, and had a financial S ! D S ! D S ! D partner in a Dutch conglomerate called Vendex The name of the holding company changed back to S ! D Barnes & Noble, Inc in 1991, and the company reacquired rights to publish under the Barnes &S ! D Noble name These rights had been sold after John Barnes died in 1969 S ! D S ! D Opening of Numerous Superstores: Early 1990s Barnes & Noble, Inc had grown enormously in the 1980s through acquisitions The company S ! D S ! D embarked on a new growth strategy in the 1990s, opening new "superstores" at a breathtaking pace The superstores differed somewhat from the earlier Fifth Avenue "book supermarket" Barnes & S ! D Noble sales annex The superstores were large, carrying as many as 150,000 t itles, or six times the S ! D size of a typical mall bookstore, but they had amenities such as coffee bars and childrens play areas, and were designed to be pleasant public spaces where people would browse, read, and mingle Wide aisles and scattered chairs and benches encouraged customers to linger, and local S ! D managers had the autonomy to arrange poetry readings and puppet shows The discounted (usuallyBiZdoM : Companies History Part 1 | S ! D by ten to 40 percent) superstore stock was vast, yet the space was as posh and inviting as that of many independent bookstores Barnes & Noble operated 23 superstores in 1989 Three years later S ! D S ! D there were 105, and the company intended to open 100 more each year through 1994 On one day S ! D in August 1992, Barnes & Noble opened five superstores, and two months later op ened three more S ! D Entering Internet Bookselling: Late 1990s In 1996 Barnes & Noble bought a 20 percent stake in Chapters Inc , the largest book retailer in S ! D Canada, but sold it three years later For the fiscal year ending in January 1997, revenues soared S ! D past the $2 billion mark, reaching $2 45 billion, an increase of more than 23 percent over the S ! D previous year In early 1997 the company entered the burgeoning market for Internet bookselling S ! D Feedback at bizdomonline@gmail.com 79

through a venture with America Online Inc (AOL), whereby Barnes & Noble became the exclusive S ! Dbookseller for the more than eight million AOL subscribers Later that year the company launched its S ! Dbookselling web site, barnesandnoble com These moves came following the emergence of a new S ! D S ! Dcompetitive threat, namely Seattle-based Internet bookselling upstart Amazon com, Inc , which had S ! D S ! Dbeen founded in 1995 and had sales of $147 8 million by 1997--although it had yet to make a S ! Dprofit The e-commerce battle between Amazon com and barnesandnoble com intensified in 1998 S ! D S ! D S ! Dwhen German media behemoth Bertelsmann AG purchased 50 percent of Barnes & Nobles Internetoperation for $200 million, a sizable capital fund for the nascent undertaking For the fiscal year S ! Dending in January 1999, barnesandnoble com saw its sales increase 381 percent, from $14 6 million S ! D S ! Dto $70 2 million; it also developed an in-stock inventory of 750,000 titles ready for immediate S ! Ddelivery, which the company claimed was the largest in the industry It also claimed to have the S ! Dworlds largest overall selection, with more than eight million new, out-of-print, and rare booksavailable for ordering In May 1999 Barnes & Noble and Bertelsmann took barnesandnoble com S ! D S ! Dpublic, selling 18 percent of the company and raising another $421 6 million for its war chest The S ! D S ! DInternet booksellers joint venture partners retained equal 41 percent shares in barnesandnoble com S ! D S ! DIn July 1999 barnesandnoble com announced the launch of an online "music store," with heavy S ! Ddiscounts of as much as 30 percent off retail prices Here again, Barnes & Noble was following S ! Dtrailblazer Amazon com, which began selling music online a year earlier S ! D S ! DBates Worldwide, Inc S ! D1940: Theodore L Bates founds Ted Bates & Company, Inc S!D S!D1948: Ted Bates is converted to a partnership S!D1955: Ted Bates is reconverted to a corporation S!D1959: Ted Bates forms a venture to found Hobson, Bates & Partners, Ltd in London S!D S!D1986: Saatchi & Saatchi plc acquires Ted Bates S!D1987: Bates is merged with Backer & Spielvogel Advertising to form Backer SpielvogelBates Worldwide S!D BiZdoM : Companies History Part 11994: Company changes it name to Bates Worldwide S!D1995: Parent company Saatchi & Saatchi changes its name to Cordiant plc S!D1997: Cordiant spins off Saatchi & Saatchi and Bates Worldwide Bates becomes a S!Dsubsidiary of a newly formed holding company, Cordiant Communications Group plc S!DBates Worldwide, Inc , the primary subsidiary of Cordiant Communications Group plc, is one of the S ! Dleading advertising and integrated communications networking companies in the world, with morethan 156 offices in more than 70 countries and annual billings in excess of $7 7 billion in 1998 S ! D S ! DHeadquartered in New York City, the company provides its clients with a full range of marketing@Team BiZdoM 80

BIZDOM : COMPANIES HISTORY PART 1 communications services Among its largest clients in the late 1990s were British American Tobacco , S ! D Warner-Lambert, Estée Lauder, and Hyundai S ! D 1940s Birth of the Unique Selling Proposition: 1940s Both brand name and international marketing were traditions that went back to Bates agency founder Theodore L Bates, who established Ted Bates & Company in 1940 A 1924 graduate of S ! D S ! D Yale University, Ted Bates worked in advertising for several years, serving as a vice -president and director at Benton & Bowles before forming his own agency Ted Bates began with two clients, S ! D Colgate-Palmolive-Peet and Continental Baking, and four brands to advertise: Colgate Dental Cream, Palmolive Shaving Cream, Hostess Cup Cakes, and Wonder Bread Within the agencys first six S ! D months, gross billings stood at $5 million, an accomplishment largely attributed to the Unique Selling Proposition (USP) developed by Ted Bates and Rosser Reeves, the agencys chief creative officer S ! D USP focused on identifying a unique feature of each product and connecting it in the minds of consumers with the brand name Moreover, early USPs emphasized the potential health benefits of a S ! D product One early company publication described how the agency contracted with five leading S ! D universities to undertake dental research in discovering some new quality in Colgate Dental Cream S ! D Conducted by recognized authorities, the tests continued for many months and provided the medical proof for the USP message: The Colgate Way Stops Tooth Decay Best That declaration, repeated S ! D thousands of times in every medium, sent Colgate sales soaring in the United States In another S ! D example, an advertising campaign for Continental Baking told consumers that Wonder Bread Helps Build Strong Bodies 12 Ways The USP principle would later be applied in Bates ads for Minute Maid S ! D Orange Juice (Better For Health Than Oranges Squeezed At Ho me) and Royal Puddings (Give More Food Energy Than Sweet, Fresh Milk) S ! D After ten years and a world war, the agency was working with 41 of its clients brands, its billings approached $28 million, and, by one estimate, sales of the four original brands pro moted by Bates had increased by 368 percent With the agency doing so well, Ted Bates surprised the advertising S ! DBiZdoM : Companies History Part 1 | industry in 1948 by dissolving the incorporated firm and converting the business to a partnership S ! D Fourteen senior officers became members with equal shares, equal rights, and equal responsibilities S ! D Bata Ltd S ! D Key Dates: 1894: The Bata family establishes a company in Zlin, located in what is now the Czech Republic S!D Feedback at bizdomonline@gmail.com 81

1932: Founder Tomas Bata dies in an airplane accident S!D1939: The company relocates to Canada after the movement of German military forcesinto Eastern Europe S!D1945: Czechoslovakia business operations are nationalized by the new communistgovernment following World War II S!D1991: Bata returns to the Czech Republic following fall of the communist regime S!D1994: Thomas J Bata, the son of the companys founder, retires S!D S!D2001: Thomas J Bata, Jr , becomes chairman and CEO S!D S!D S!DThe Bata familys ties to shoemaking span more than two dozen generations and purportedly date asfar back as 1580 to the small Czech village of Zlin However, it was not until 1894 that the family S ! Dbegan to make the transition from cobblers to industrialists In that year, Tomas G Bata, Sr , along S ! D S ! D S ! Dwith his brother Antonin and sister Anna, took 800 florins, some $350, inher ited from their motherand launched a shoemaking business They rented a pair of rooms, acquired two sewing machines on S ! Dan installment plan, and paid for their leather and other materials with promissory notes They S ! Dproduced stitched, coarse-woolen footwear Within a year, the business was successful enough to S ! Denable the Batas to employ ten people in their factory, such as it was, as well as another forty whoworked out of their own homes In the same year, 1895, Antonin was drafted into the military and S ! DAnna quit the business to get married, forcing Tomas to assume complete control of the venture He S ! Dwas just 19 years old S ! DIn 1900, Bata moved the operation to a new building located close to Zlins railway station and tookthe first major step in industrialization, installing steam-driven machines The company enjoyed S ! Dsuccess producing light, linen footwear that appealed to a large portion of the population, who couldnot afford better-made leather shoes Nevertheless, Bata came close to bankruptcy on more t han BiZdoM : Companies History Part 1 S ! Done occasion and concluded that in order for his business to survive he needed to find more efficientways to manufacture and distribute shoes In 1904, he and three employees took a trip to the S ! DUnited States to learn firsthand the ways of mass product ion Bata spent six months working as a S ! Dlaborer on a shoe assembly line in New England On his way back to Zlin, he also took time to visit S ! DEnglish and German factories Upon his return home, Bata began to transform the family shoe S ! Dbusiness, not only by applying the latest production techniques--which would one day earned him themoniker, "the Henry Ford of the shoe industry"--but also by finding a way to preserve the role ofworkers, which all too often changed dramatically during the transition from an ar tisan to anindustrial approach to commerce S ! D@Team BiZdoM 82

BIZDOM : COMPANIES HISTORY PART 1 The Bata shoe business began to experience steady growth, so that by 1912 it was employing 600 full-time workers plus another few hundred who worked out of their homes in neighboring villages S ! D Tomas Bata now began to exhibit another side to his personality, the social idealist Because there S ! D was a shortage of housing in Zlin for his new workers, he constructed new homes, which he rented at cost He also offered inexpensive meals in factory cafeterias and free me dical care He even built a S ! D S ! D new hospital to care for his workers However, as soon as they began to earn higher incomes, area S ! D merchants raised prices In answer, Tomas Bata opened his own less-expensive company stores to S ! D ensure that his employees were able to enjoy the fruits of their success He also took steps to S ! D identify management talent among the ranks of his workers and instituted a training program that was ahead of its time S ! D World War I Boot Contract a Turning Point Bata received a major boost in 1914, following the outbreak of World War I, when the company received a contract to produce boots for the Austro-Hungarian army From the waste of these items, S ! D the company produced the uppers to a wooden shoe that it sold to the lower classes Tomas Bata S ! D then invested the profits in new machinery, as well as in the opening of new retail shops, so that the business was well positioned to take advantage of the economic boom of the 1920s Before the S ! D company could enjoy this strong period of growth, however, T omas Bata and his employees were forced to take a major gamble together In the years immediately following the end of World War I S ! D in 1918, an economic slump prevailed across the globe, leading to significant unemployment S ! D Czechoslovakia, formed as part of the peace settlement of World War I, attempted to fight inflation, which had already devastated Germany, by adopting tight monetary controls As a result, the S ! D countrys currency lost three-quarters of its value, which in turn led to a drop in demand for products, a cutback in production, more unemployment, and even less consumer demand -- developments that together threatened national economic devastation In August 1922, a group of S ! D industrialists met to discuss their plight Unlike the others, Tomas Bata did not simply throw up his S ! D hands and blame the government Instead, he called on the industrialists to take decisive steps to S ! D stimulate market demand, and he shocked everyone by announcing that he was going to cut the price of Bata shoes in half Once the surprise of the moment wore off, Batas audience simplyBiZdoM : Companies History Part 1 | S ! D laughed at him S ! D Bata was able, however, to convince his workers that he had a plan, albeit a radical one, that would work He believed that the company had to cut costs to the bone and work at peak ef ficiency in S ! D order to halve the price of Bata shoes Workers, ignoring their union leadership, accepted a 40 S ! D percent reduction in wages across the board Tomas Bata, in turn, provided food, clothing, and other S ! D necessities at half-price to mitigate the loss of wages In addition, he introduced measures that were S ! D pioneering, including the creation of individual profit centers and incentive payments to both management and workers to spur productivity With his operations lean and efficient, he then S ! D Feedback at bizdomonline@gmail.com 83

launched a national advertising campaign The response from consumers was swift and dramatic, as S ! DBata stores, which had been virtually empty for months, were now swamped with customers lookingfor inexpensive shoes Bata was forced to increase production, and not only did the company S ! Dmaintain full employment, it began to hire The decision to cut prices proved to be a turning point in S ! Dthe history of the company, which now grew at a tremendous pace S ! DTomas Bata continued to innovate, improving on productivity primarily through the introduction of anassembly line approach After five years, productivity improved 15-fold; after ten, the retail price of S ! DBata shoes dropped by 82 percent The employees faith in Tomas Bata was also rewarded After S ! D S ! Daccepting a severe wage cut in 1922, by 1932 they had seen their salaries doubled They were now S ! Dworking for the largest shoemaker in the world According to company lore, in fact, in some S ! Ddeveloping countries "bata" gained currency where there was no word for "shoe " Moreover, Bata S ! Dbecame involved in a variety of other industries, including socks, leatherwork, chemicals used inleather making, shoemaking machinery, wooden packing crates, tires and other rubber goods The S ! Dcompany launched its own film studio to produced advertising m aterials, and it soon evolved into afull-fledged enterprise that produced some of the earliest animated films Because of the companys S ! Dinvolvement in transportation, as Bata became the worlds largest exporter of shoes, Tomas Bataeven became involved in the manufacture of airplanes through the Zlin Air Company, which producedboth sporting and business planes He also became famous for housing his headquarters in the S ! Dtallest reinforced concrete office building in Europe, which featured an elevator that h oused his"floating office " With a push of a button, Bata was able to confer, and keep an eye on, his S ! Demployees on every floor without leaving his desk S ! DBata established operations in new markets, such as Singapore in 1930 The company, which in S ! D1931 adopted a joint stock company form of organization, also established subsidiaries and shoefactories in a number of European countries as a way to circumvent tariffs that had been imposed inresponse to a worldwide economic depression In mid-1932, Tomas Bata called together his team of S ! D BiZdoM : Companies History Part 1executives and announced that in order for the company to weather increasingly difficult economicconditions and drive further growth, they would have to look to more distant markets, in particularNorth America Just two days later, however, Tomas Bata was killed when an airplane he was in took S ! Doff in a thick fog and crashed into a chimney of one of his buildings He was 56 years old S ! D S ! DBata left a 22-year-old son, Thomas J Bata, whom he had groomed since childhood to one day h ead S ! Dthe business, but in the meantime Batas half-brother Jan took over and continued the mentoringprocess It was Thomas Bata who was to be dispatched to North America, to which the company was S ! Dalready exporting shoes, to establish a manufacturing operat ion While most executives in the S ! D@Team BiZdoM 84

BIZDOM : COMPANIES HISTORY PART 1 organization lobbied for the United States as the location for a plant, the young Bata was fixated on locating the business in Canada, a place he had romanticized since childhood after reading the works of Jack London With the rise of Nazi Germany in the 1930s, the importance of organizing a North S ! D American operation took on increasing importance, as the company now made plans to relocate its headquarters to the West In March 1939, with Germany on the verge of invading his country, S ! D Thomas Bata fled to Canada along with 180 Czechoslovakians After being granted permission from S ! D the Canadian government, he started up operations in Frankford, Ontario, taking over a former Canadian Paper Company mill while a new factory was built To aid in the Allied war effort, the S ! D company focused its personnel and equipment on the production of anti -aircraft equipment and machines used to inspect ammunition For his part, Jan Bata moved his headquarters to the United S ! D States, but when blacklisted by the Allies he was forced to relocate to Brazil The Bata Shoe S ! D Organization, as it was called, was now split between uncle and nephew, resulting in an eventual contest for management control and ownership Thomas Bata essentially prevailed in 1949, but the S ! D contest continued to be played out in the courts of numerous countries until the end of 1966 S ! D The return of Bata operations lost to the Nazis was short lived after World War II In 1945, the S ! D communist government installed in Czechoslovakia by the So viet Union had nationalized the countrys industry, usurping the original Bata shoe factory in Zlin and the companys far -flung network of shops (Even Zlins name was changed, becoming known as Gottwaldov, a tribute to the S ! D countrys first communist president ) Bata was further stripped of assets as other countries, including S ! D East Germany, Poland, and Yugoslavia, also nationalized their shoe industries Now based in the S ! D West, Bata and its many Czechoslovakian expatriates began to rebuild the business, takin g on an almost missionary zeal in the process Rather than organizing in a centralized manner, the company S ! D established a structure based on autonomous operations, primarily in the new markets of developing countries Also following the war, Thomas Bata married an aspiring architect named Sonja, a woman S ! D who would play an influential role in the success of the company, supplementing her husbands manufacturing and sales expertise with a sense of design and style By the mid-1950s, Bata was S ! D operating 56 factories in 46 countries Thirty years later, Bata was in 115 countries, selling close to S ! D $2 billion worth of footwear each year through 6,000 company -owned stores and 120,000 independent retailers S ! DBiZdoM : Companies History Part 1 | Bata Shoes Returns to the Czech Republic in 1991 In the 1970s and 1980s, the manufacture of shoes began to shift increasingly to Pacific Rim countries, where lower labor costs provided a competitive edge that proved devastating to shoe companies around the world With its widely cast operations and well-established distribution S ! D network, Bata was better able to compete, but it too suffered from a softening in its business S ! D With the fall of communism in the late 1980s, Bata was able to return to the country where the family business was founded The company was not able to resume ownership of its prior assets, S ! D Feedback at bizdomonline@gmail.com 85

which has been combined with other Czech shoe operations, nor did Bata wish to be encumberedwith facilities that the communists had neglected for more than 40 years Nevertheless, Thomas Bata S ! Dwas committed to establishing a business in his native country After some study, the management S ! Dteam elected to focus on a retail distribution business and a modest manufacturing facility, one thatwas not part of the old Bata operation A small factory established by the communist regime was S ! Dfound acceptable, and the company then selected a number of retail locations, which would total a20 percent market share, and presented the government with a joint venture proposal that wasaccepted in late 1991 S ! DThomas Bata, at the age of 80, elected to retire in 1994 His son, Thomas Bata, Jr , had been S ! D S ! Dserving as president since 1985 According to The Globe and Mail, Thomas, Jr "took over at a timeS ! D S ! Dwhen the international shoe maker was experiencing heightened competition from stro ng globalmarketers The movement toward free trade challenged its network of quasi -autonomous national S ! Dcompanies Mr Bata tried to make changes, but insiders says he lost the support of key members of S ! D S ! Dthe board " He was widely expected to succeed his father, but to the surprise of many, Stanley S ! DHeath, a Canadian with considerable executive experience with RJR Nabisco, took over as presidentand CEO to assume the day-to-day running of the business, while the younger Bata assumed thechairmanship, ostensibly charged with focusing on the "big picture " He soon left the family business S ! Dand moved to Switzerland His father, with a reputation as an autocrat, was slated to become S ! Dhonorary chairman, but the post proved to be far from ceremonial, as he continued to be involved inthe companys operations on a day-to-day basis and was not reticent about letting managementknow his opinions Little more than a year after coming to Bata, Heath resigned for "personal and S ! Dfamily reasons " Taking over for Heath was a loyal company man, Rino Rizzo, who had been with the S ! DBata organization since 1969 In 1999, Bata brought in Jim Pantelidis, an executive who had no S ! Dexperience in the shoe industry, to assume the CEO position Pantelidiss background was in retail S ! Dgasoline sales, and during his career he had worked for one of Canadas largest chains, Petro -CanadaCorporation Pantelidis instituted a plan to develop regional shoe lines, as opposed to lines created S ! Dfor individual countries In addition, he wanted to create economies of scale by building regional S ! D BiZdoM : Companies History Part 1infrastructures The goal was to use the regional infrastructures to position the Bata brand on a S ! Dglobal basis S ! DThe tenure of Pantelidis lasted just two years In late 2001, Thomas Bata, Jr returned, gained S ! D S ! Dcontrol of the business, and was named chairman and CEO, while Pantelidis left to "pursue otherchallenges " Bata began to reorganize the company, essentially running the business out of S ! DSwitzerland It remained to be seen if he would be able to succeed where outsiders had failed in the S ! Deffort to transform Bata from a federation of stand-alone local subsidiaries into a truly internationalcompany S ! D@Team BiZdoM 86

BIZDOM : COMPANIES HISTORY PART 1 Bausch & Lomb Inc S ! D Bausch & Lomb Optical Co , an eyeglass store and manufacturer of eyeglass frames, was founded in S ! D 1853 by two German immigrants, John Jacob Bausch and Henry Lomb, in Rochester, New York S ! D Bauschs son Edward learned to make microscopes, and the company prospered after it began to manufacture them In 1890 Edward Bausch contacted Carl Zeiss, a German optics firm , and soon S ! D arranged for Bausch & Lomb to license Zeisss patents, with the exclusive rights to the U S market S ! D S ! D S ! D The most important patents were to Zeisss new photographic lens and its first prism binoculars S ! D Bausch & Lomb expanded, opening offices in Chicago, Boston, New York City, and Frankfurt, Germany Bausch & Lomb gradually became a leading name in optics in the United States, supplying S ! D microscopes to schools and laboratories and manufacturing the U S Navys first telescopic gun S ! D S ! D sights S ! D In the early 1900s, Zeiss perfected the military range finder Impressed by U S manufacturing S ! D S ! D S ! D expertise, Zeiss eventually decided that, rather than build its own factory, it would allow Bausch & Lomb to manufacture range finders in the United States In 1907 Zeiss bought 20 percent of Bausch S ! D & Lomb, granting the company free use of Zeiss patents in the United States Zeiss, on the other S ! D hand, sold to the rest of the world and was paid in dividends rather than royalty payments Bausch & S ! D Lomb also sent technicians to Germany for training at Zeiss laboratories Military products accounted S ! D for only a small amount of Bausch & Lombs production, but as the only U S manufacturer of many S ! D S ! D optical products, production was nevertheless vital to the U S military As a result, the U S Navy S ! D S ! D S ! D S ! D S ! D stationed technical experts in the companys plant in 1912 S ! D Bausch & Lombs arrangement with Zeiss unraveled after the outbreak of World War I The S ! D company had sold the Allies equipment without Zeisss approval in Europe, which was not one of Bausch & Lombs markets In 1915 Zeiss sold its 20 percent share back to Bausch & Lomb, and S ! D until 1921, the two companies had no dealings with one another (although Bausch & Lomb continued to use Zeiss patents) Because of the war, Bausch & Lomb became the major U S supplier S ! D S ! D S ! D of scientific precision glass, from which the lenses used by the military were ground After the war, S ! D the other U S companies that had learned to make the glass stopped production, making Bausch &BiZdoM : Companies History Part 1 | S ! D S ! D Lomb the only producer of scientific precision glass in the Western Hemisphere In 1921 Zeiss made S ! D all of its military patents exclusively available to Bausch & Lomb for use in the United States S ! D In 1926 John Jacob Bausch died, and Edward Bausch became chairman of the board In the 1937 S ! D Bausch & Lomb went public, selling $3 6 million worth of stock to raise working capital At the time S ! D S ! D the company made 17,000 products, from eyeglasses to spectroscopes Bausch & Lomb made 28 S ! D percent of U S eyeglass lenses and a large percentage of the country s microscopes and binoculars S ! D S ! D S ! D Even after the offering, the company was still closely held, with family members owning significant percentages of Bausch & Lomb stock and holding most top management positions S ! D Feedback at bizdomonline@gmail.com 87

Preparing for World War IIDuring the late 1930s, as Europe once again headed toward war, Bausch & Lomb focused onbecoming self-sufficient by searching for U S sources of most materials to make optical glass and by S ! D S ! Dstockpiling two years worth of foreign supplies During this time, the firm emerged as a leading S ! Dprovider of professional photographic lenses, particularly for the film industry Bausch & Lombs S ! DCinephor coated projection lenses were used by almost all U S movie houses, while its high-speed S ! D S ! Dlenses were used for projecting background scenes Bausch & Lomb was awarded an honorary Oscar S ! Dfor these contributions With help from these new products, company sales increased from $16 2 S ! D S ! Dmillion in 1938 to about $21 million in 1940 S ! DDespite these accomplishments, Bausch & Lombs image was tarnishe d somewhat by a 1940 federalsuit regarding its relationship with Zeiss The U S Justice department charged both companies with S ! D S ! D S ! Dantitrust violations because of their agreed-upon division of world markets The government alleged S ! Dthat this resulted in inflated prices and also questioned the propriety of a German company dictatingthe sales of optical products by a U S company While denying any wrongdoing, Bausch & Lomb paid S ! D S ! D S ! Da fine and again severed its relationship with Zeiss The company was expanding for a new S ! Drearmament program and bidding on navy contracts, and industry analysts assumed that Bausch &Lomb wanted the incident put behind it as quickly as possible S ! DDuring World War II Bausch & Lomb produced optical instruments, including range finders and fieldscopes As one of the earliest manufacturers of high-quality sunglasses, the company also benefited S ! Dfrom the use of Ray-Ban sunglasses by U S Army Air Corps pilots and General Douglas MacArthur S ! D S ! D S ! D BiZdoM : Companies History Part 1During the war, the percentage of company output relating to the military soared, but by the early1950s, military sales had fallen to 15 percent of the total Sales had increased to about $48 5 S ! D S ! Dmillion, and the firm had more than 150 prescription labs for grinding and polishing glass lensesthroughout the United States Bausch & Lomb spent less than 2 percent of sales on research and S ! Ddevelopment Meanwhile, as Japanese firms recovered from the war, they became competitive In S ! D S ! D1951 Bausch & Lomb realized it was slowly losing its competitive edge and began al locating moremoney--some of it borrowed--into research and development As a result, the company moved into S ! Dthe growing electronic optics field in 1954 By the early 1960s the firm was spending approximately S ! D6 5 percent of sales on research and development Bausch & Lomb also upgraded its marketing S ! D S ! Ddepartment to determine customer demand prior to developing new product lines S ! D@Team BiZdoM 88

BIZDOM : COMPANIES HISTORY PART 1 In 1959 William McQuilken became the first president not related to the families of Bausch & Lombs founders The firm dropped Optical from its title in 1961, reflecting its move into other S ! D technologies and measurements Sales reached $70 million in 1962 The company moved into the S ! D S ! D school market, which was growing quickly and required inexpensive, rugged instruments In 1963 the S ! D firm released a $12 microscope targeted at the elementary and secondary school market The S ! D instrument, with features usually reserved for expensive models, was made of tough plastics Bausch S ! D & Lomb released two additional school microscopes priced under $50 Company earnings were static S ! D for much of the 1960s, however, because low-margin ophthalmic products such as eyeglass lenses and frames still accounted for a sizable portion of its sales S ! D Development of Soft Contact Lenses in the 1960s In 1966 Bausch & Lomb made its most important decision since World War II when it negotiated a license to make and sell contact lenses made from a fluid -absorbing hydrophilic plastic The material S ! D had been invented in Czechoslovakia and Western Hemisphere rights were purchased by National Patent Development Corp , from whom Bausch & Lomb licensed them Bausch & Lomb spent $3 3 S ! D S ! D S ! D million on research and development, learning how to make viable soft contact lenses from the material Many people experienced so much discomfort with hard contact lenses that they refused to S ! D wear them The company hoped soft contact lenses would garner a huge share of the contact lens S ! D market Bausch & Lomb encountered a few difficulties at the beginning Because soft contact lenses S ! D S ! D conformed to the shape of the cornea, people with irregularly shaped corneas initially could not wear them Other problems cropped up, including eye infections Further, the U S Food and Drug S ! D S ! D S ! D S ! D Administration (FDA) classified soft contact lenses as a drug, which meant that Bausc h & Lombs product encountered numerous regulatory hurdles Nonetheless, many doctors greeted the new S ! D lenses with enthusiasm The firms Softlens contacts were released in 1971 and sold about 100,000 S ! D pairs that year S ! D Because of the excitement generated by soft contact lenses, Bausch & Lombs stock tripled in value in less than a year and at one point sold for 75 times annual earnings At that time, approximatelyBiZdoM : Companies History Part 1 | S ! D 44 percent of Bausch & Lombs sales came from scientific instruments, mostly optical instrument s sold to medical, industrial, military, film, and educational customers The company served as the S ! D major supplier of lenses for Xerox Corp s copy machines Bausch & Lomb also sold consumer goods, S ! D S ! D such as microscopes, binoculars, and rifle scopes S ! D Diversification in the 1980s Feedback at bizdomonline@gmail.com 89

In 1980 Daniel Gill, a former marketing specialist with Abbott Labs, became Bausch & Lombscompany chairman He felt that the company was too dependent on contact lenses and too bloated S ! Dby low-performance products Gill restructured the company by selling off low-profit businesses One S ! D S ! Dof the first to go was prescription eyeglasses Gill justified this change because the firm had missed a S ! Dtrend to plastic lenses and was also being pinched by cheaper imported lenses Yet with its S ! Dtraditional business gone, the company went into upheaval, and many top managers left S ! DThe market for soft contact lenses continued to grow more competitive as it grew larger By 1982 S ! Dcompetitors included such large companies as Johnson & Johnson, Revlon, an d Ciba-Geigy Although S ! DBausch & Lomb continued to hold nearly half of the market, new competitors were introducingproducts Bausch & Lomb either did not have or had no lead on, such as gas -permeable hard lenses,extended-wear soft lenses, bifocal contacts and color-tinted contacts The competitors pushed these S ! Dproducts with expensive television advertising campaigns While Bausch & Lombs cost for producing S ! Dsoft contacts had dropped to $1 50 to $2 each, American Hydron reported that it was nearly S ! Dfinished with a system that would produce contacts for $1 S ! DBausch & Lomb moved quickly into the extended-wear lens market, an area in which it had beenlosing new lens wearers While waiting for FDA approval of its own lens, Bausch & Lomb leased an S ! Dextended-wear system from American Medical Optics The lenses were lathe cut, not spin cast like S ! Dthe Softlens, and cost $7 to $8 a pair to manufacture When FDA approval came in 1984, Bausch & S ! DLomb displayed its marketing power by supplying new lenses to 90 percent of the U S outlets selling S ! D S ! Dcontact lenses within a month Within four months the companys extended-wear lenses had 37 S ! Dpercent of the market and stood as the leading brand Part of that success came through aggressive S ! Dpricing The lenses wholesaled for $20 a pair, while the industry average was $30 As a result, S ! D S ! DBausch & Lomb was soon embroiled in a price war with rival CooperVision S ! D BiZdoM : Companies History Part 1Sunglasses sales were also improving The firm had signed a $50,000-a-year agreement with Unique S ! DProduct Placement in 1982 to feature Ray-Bans in films The Ray-Ban Wayfarer line did particularly S ! Dwell The company sold 16,000 pairs in 1982, but after Tom Cruise wore them in the 1983 film S ! DRisky Business, sales jumped to 360,000 Wayfarers were also worn by actors on the Miami Vice an d S ! DMoonlighting television series By 1986 sales reached 1 5 million, and Ray-Bans 40 lines accounted S ! D S ! Dfor one-third of the $500 million U S market for premium sunglasses S ! D S ! D S ! D@Team BiZdoM 90

Bayer A G S ! D S ! DBayer A G , along with BASF and Hoechst, is heir to the German chemi cal cartel known as I G S ! D S ! D S ! D S ! DFarben, which the Allies disbanded in 1952 for its close association with the Nazi Party and activeparticipation in war crimes Rising above its checkered past, Bayer has again assumed a commanding S ! D position in the world chemical industry The diversified company now S ! D operates in six broad areas: health care (pharmaceuticals and self - medication), industrial products (including polyurethane), polymers (fibers, plastics, and rubber), imaging technologies (including photographic product s), organic products (dyes, pigments, and organic chemicals), and agrochemicals S ! D Bayer A G was founded in Elberfield by Friedrich Bayer in 1865 Bayers first S ! D S ! D S ! D product of note was a synthetic magenta dye The works at Elberfield were S ! D followed by additional production facilities in Leverkusen (1891), Uerdingen (1907), and Dormagen (1913) S ! DAlthough Bayer was a world leader in dyestuffs, its place in the history of early twentieth -centurychemistry was secured by its contributions to pharmacology A Bayer chemist, Felix Hoffman, S ! Ddiscovered aspirin at the turn of the century In 1908 the basic compound for sulfa drugs was S ! Dsynthesized in Bayer laboratories The immediate application of the compound was a reddish orange S ! Ddye, but it was soon discovered to be effective against pneumonia, a major health hazard of theearly twentieth century Despite the lives that could have been saved if the sulfa drug had been S ! Dreleased immediately, Bayer held on to the formula Frustrated French chemists were forced to S ! Dduplicate the drug in their own laboratories in order to introduce it to the market Bayer chemists S ! Dregularly tested dye compounds for their effectiveness against bacteria In 1921 they discovered a S ! Dcure for African sleeping sickness, an infectious disease that had ma de parts of Africa uninhabitable S ! DAware of the political, as well as the pharmacological, implications of its compound, Bayer offered the British the formula to the drug, known as Germanin, in exchange for African colonies Britain declined the offer This led to S ! D S ! D a policy during World War I whereby Bayer deprived the Allies of BiZdoM : Companies History Part 1 drugs and anesthetics whenever possible S ! D In 1925 the president of Bayer, Carl Duisberg, organized a merger of the major German chemical companies into a single entity known as the Interessen Gemeinschaft Farbenwerke, or I G S ! D S ! D Farben From their inception, the German chemical companies had S ! D been organized into a series of progressively more powerful trusts, but with I G Farben the last vestiges of competition in the S ! D S ! D@Team BiZdoM 92

BIZDOM : COMPANIES HISTORY PART 1 chemical industry were extinguished Other industries, such as steel, were undergoing a similar S ! D process in Germany S ! D In addition to setting quotas and pooling profits, I G Farben pursued political aims, working to S ! D S ! D prevent any possibility of a leftist uprising that would esta blish worker control over industry In order S ! D to prevent such an uprising, I G Farben financed right-wing politicians and attempted to influence S ! D S ! D domestic policy in secret meetings with German leaders The trust also exercised its influence S ! D abroad, with Bayer and other companies contributing an estimated ten million marks to Nazi Party associations in other countries Money was also designated for propaganda: in 1938 Bayer forced an S ! D American affiliate, Sterling Drug, to write its advertising contracts in suc h a way that they would be immediately canceled if the publication in which the advertising appeared presented Germany in an unflattering light Bayer and I G Farben profited handsomely from their support of Adolf Hitler By S ! D S ! D S ! D S ! D 1942 the I G Farben was making a yearly profit of 800 million marks more than its entire combined S ! D S ! D capitalization in 1925, the year the cartel was formalized Not only was the I G Farben given S ! D S ! D S ! D possession of chemical companies in foreign lands (the I G Farben had control of Czechoslovakian S ! D S ! D dye works a week after the Nazi invasion), but the captured lands provided its factories in Germany with slave labor In order to take full advantage of slave labor, I G Farben plants were built next to S ! D S ! D S ! D Maidanek and Auschwitz S ! D Many of the I G Farben plants contracted during the war were built in remote areas, often with S ! D S ! D camouflage These factories did not sustain much physical damage, in contrast to the many German S ! D cities that were completely destroyed By I G s account, only 15 percent of its productive capacity S ! D S ! D S ! D was destroyed by the Allies The worst damage was sustained by the extensive BASF works and S ! D factories in eastern Germany, which were destroyed by I G Farben employees so that the buildings S ! D S ! D would not fall under Russian control S ! D Immediately after the war many members of I G Farbens S ! D S ! D Vorstand, or board of directors, were arrested and indicted for war crimes I G Farben executives were in the habit of S ! D S ! D S ! D keeping copious records, not only of meetings and phone calls,BiZdoM : Companies History Part 1 | but also of their private thoughts on I G Farbens dealings S ! D S ! D with the government; as a result, there was extensive written evidence incriminating the Vorstand Despite this evidence S ! D and testimony from concentration camp survivors, the Vorstand was dealt with leniently by the judges at Nuremberg S ! D Journalists covering the 1947 proceedings attributed the light sentences, none of which was longer than four years, to the fact that all the sentences handed down at the end of the trials were less severe, as well as to the judges unwilling ness to expand their definition of war criminals to include Feedback at bizdomonline@gmail.com 93

businessmen S ! DI G Farben plants operated under Allied supervision from 1947 until 1952, when the organizationS ! D S ! Dwas dismantled in the interests of "peace and democracy " The division of I G Farben generally S ! D S ! D S ! Dadhered to the boundaries of the original companies; for example, the works at Leverkusen andElberfield reverted to Bayer Bayer also received the AGFA photographic works In the first five years S ! D S ! Dof its independence from I G Farben, Bayer concentrated on replacing outdated equipment and on S ! D S ! Dsupplying Germanys need for chemicals By 1957 Bayer had developed new insecticides and fibers, S ! Das well as new raw and plastic finished materials Bayers resiliency in recovering from the war S ! Dimpressed U S investors, who held 12 percent of the companys stock S ! D S ! D S ! DDuring the late 1950s Bayer began to expand overseas and by 1962 was manufacturing chemicals ineight countries, including India and Pakistan Most of the work done abroad was "final stage S ! Dprocessing," whereby active ingredients were sent from Germany and mixed with locally obtainedinert ingredients that would be expensive to transport overseas Final stage processing arrangements S ! Dallowed Bayer to manufacture products, mostly farm chemicals and drug s, in developing countriesmore profitably S ! D BiZdoM : Companies History Part 1@Team BiZdoM 94

BIZDOM : COMPANIES HISTORY PART 1 Bayerische Motoren Werke AG Key Dates: 1913: Inventor Karl Rapp opens an aircraft design shop S!D 1917: Rapps original business leads to the formation of Bayerische Motoren Werke AG, under the direction of Franz Josef Popp and Max Friz S!D 1918: First BMW aircraft engine is built S!D 1929: First BMW car is built S!D 1959: Herbert Quandt becomes BMWs dominant shareholder S!D 1962: Introduction of the 1500 model creates a lasting market niche for BMW S!D 1994: British-based Rover Group Ltd is acquired for US$1 2 billion S!D S!D S!D 2000: After years of losses due to an unsuccessful assimilation of the Rover brand, Rover Group Ltd is divested S!D S!D Bayerische Motoren Werke AG, popularly known as BMW, is a global manufacturer and marketer of luxury automobiles and motorcycles In addition to its S ! D BMW brand, the company owns Rover Cars Mini brand of cars, a vestige of its failed ownership of Rover Group Ltd In an era of rapid consolidation within the global S ! D car industry, BMW is one of the few independent companies in operation The Quandt family, the S ! D companys largest shareholder for more than 40 years, owns more than 45 percent of BMW S ! D Origins As an Aircraft -Engine Builder Although not officially established until 1917, BMW can trace its heritag e back to 1913 when Karl Rapp started to build aircraft engines for Austria in anticipation of World War I Rapp- S ! D Motorenwerkes top customer was Franz Josef Popp, general inspector of Emperor Franz Josefs army Popp hired Max Friz, an aircraft engine designer from Austro-Daimler; together in Munich theyBiZdoM : Companies History Part 1 | S ! D established Bayerische Motoren Werke based on the engineering ideas of Rapp S ! D Popp, an engineer, took charge of administration while Friz served as senior designer A third S ! D associate, Camillo Castiglioni from Vienna, looked after the accounts The trio began their enterprise S ! D at the old Rapp factory, then moved to the Moosacher Strasse factory, also in Munich, in 1918 S ! D There, Friz designed and built the companys first aircraft engine S ! D Feedback at bizdomonline@gmail.com 95

At the end of the war, Bayerische Motoren turned to the production of train brakes, and when in1922 the Moosacher Strasse factory was sold to Knorr -Bremse, BMW employees moved to anotherMunich location, the former Ottowerke plant on the Lerchenauer Strasse (Ottowerke had been S ! Dfounded by Gustav Otto, son of Nikolaus August Otto, inventor of the four -stroke internal combustionengine ) S ! DDespite the 1923 Treaty of Versailles ban on aircraft production in Germany, Bayerische Motorencontinued to operate and thrive Its 12-cylinder engines were used on international flights by ace S ! Dpilots such as Lpuschow, Gronau, and Mittelholzer, and more than a thousand BMW VI engines weresold to the Soviet Union Production continued to rise steadily through the 1930s The companys S ! D S ! Dinterests in motorcycle manufacture developed rapidly in the early 1920s The first model, the R32, S ! Dconsisted of a flat twin engine and drive shaft housed in a double -tube frame, with valves in aninverted arrangement to keep the oil clean Ernst Henne, riding an R32, broke the world motorcycle S ! Dspeed record at 279 5 kph (173 35 mph) in 1929; his record held until 1937 S ! D S ! D S ! DIn 1928, Bayerische Motoren acquired the ailing Fahrzeugwerke Eisenach, and a year later the Dixi,BMWs first luxury car, was produced at the Eisenach site The Dixi won the 1929 International S ! DAlpine Rally, covering the mountain route in five days But despite its success, the Dixi created major S ! Dfinancial problems for BMW, and a merger with Daimler -Benz was discussed in detail Meanwhile, a S ! Dpartnership contract was agreed upon; Dr Wilhelm Kissel, Daimler-Benzs chairperson, and Popp, at S ! DBayerische Motoren, joined each others supervisory boards A smaller 6-cylinder model of the Dixi S ! Dproved to be a most effective competitor in the Daimler -Benz market, however, and Popp droppedthe merger plans S ! DAnother Dixi, the DA2, based on the 6-cylinder model, was introduced in Berlin in July 1929 It S ! Dfeatured improved handling, better brakes, and a more attractive interior Despite the stock market S ! D BiZdoM : Companies History Part 1crash in October 1929 and the subsequent depression (17,000 German firms were forced intobankruptcy, including one of Bayerische Motorens shareholders, the Danat -Bank), the companyavoided financial disaster A total of 5,390 DA2s, the mini car at a mini price, wer e sold in 1929; S ! Dthis was increased the following year to 6,792 cars When Hitler assumed power in 1933, BayerischeS ! DMotoren, along with other German automotive companies, was required to manufacture airplaneengines for the new air force, the Luftwaffe In the same year, BMW acquired licenses to produce S ! Dthe 525 horsepower Hornet engine and to develop small radial engines for sports planes The S ! Dcompany also launched its 300 automobile series with the 303, the first car to feature the long -familiar kidney shape Lighter than comparable models, the 303 was 50 percent more powerful Its S ! D S ! Dsuccess encouraged BMW to introduce two popular compact sports models, the 315 and the 319 S ! D@Team BiZdoM 96

BIZDOM : COMPANIES HISTORY PART 1 Early in 1936, the 326 model was launched in both sedan and convertible versions The all-steel S ! D bodied 327 was also introduced that year, and in September Popp unveiled the standard -production 328, which proved to be the fastest sports car of its time; it won the Italian Mille Miglia race in 1938 S ! D The companys rising production of aircraft engines and armored motorcycles resulted in an expansion of facilities at the Milbertshofen plant on the Lerchenauer Strasse, which previously had been devoted to motorcycle manufacturing A 1939 edict of the German Ministry of Aviation required S ! D Brandenburgische Motorenwerke to merge with Bayerische Motoren, and a new factory, Allach, was constructed with government money The Allach buildings, tucked away in woods near Munich, were S ! D constructed at a distance from one another to minimize damage in the ev ent of an air raid S ! D BMW played an important role in the German war effort and at the height of Nazi domination the company operated plants as far afield as Vienna and Paris In two crucial areas of military S ! D technology, BMW was in the vanguard: with the guidance of Dr Hermann Oestrich of the German S ! D aviation test center, the company developed the 003, the first jet engine to enter standard production; and under conditions of intense secrecy, it opened a rocket testing and production plant at Zuhlsdorf S ! D Intent on maintaining a plentiful supply of military aircraft, the Nazi government instructed Bayerische Motoren in 1941 to halt all motor car production Popp, who had been at the company S ! D helm for 25 years, refused He was forced to resign and narrowly avoided internment in a S ! D concentration camp It was left to his successor, Fritz Hille, to institute Bayerische Motorens S ! D automatic system of monitoring production--a mechanical forerunner of the computer S ! D After the defeat of the Nazis, Allied Command ordered t he dismantling of many BMW facilities; at the same time, reconstruction of the now divided Germany got underway In the immediate postwar S ! D years, few West Germans were in a position to buy cars, but by 1948, the year of German currency reform, there was a substantial need for motorcycles BMW produced a new model out of spareBiZdoM : Companies History Part 1 | S ! D parts provided by dealers Known as the R24, this motorcycle was put into production and in 1949 S ! D almost 10,000 machines came off the assembly line Production in 1950 increased to 17,000, 18 S ! D percent of which was exported S ! D Post-World War II: The Emergence of a Luxury Car Maker Bayerische Motorens return to car manufacturing in 1951 proved to be a disappointment The 501 S ! D model, a 6-cylinder conservatively styled car with few technical i nnovations, was not well received; Feedback at bizdomonline@gmail.com 97

neither was its successor, the 502, which featured a V8 engine The company pinned its hopes on S ! Dthe 503 and 507 models, highlights of the 1955 Frankfurt Motor Show Both cars were designed by S ! DAlbrecht Graf Goertz and were powered by Alex von Falkenhausen engines They proved to be too S ! Dexpensive, however, for the majority of West German motorists To add to BMWs woes, its S ! Dmotorcycle sales dropped drastically, and the Allach factory had to be sold S ! DThe companys fortunes revived a little in the late 1950s during the era of the bubble car Its Isetta S ! Dmini-car, a mere 2 29 meters (7 51 feet) in length and fitted with motorcycle engines, reached a S ! D S ! Dspeed of 53 mph Customer interest in the machine was short-lived, but it enabled BMW to recoup S ! Dsome of its recent losses To capitalize on the increasing market for cars--albeit inexpensive ones-- S ! DBayerische Motoren introduced the rear-engined 700 LS model in August 1959 Available as a coupe S ! Dor convertible, and powered by motorcycle engines, the 700 LS was initially unprofitable By 1965, S ! Dhowever, when annual sales reached 18,000 units, the car had become the companys first long -termsuccess of the postwar years S ! DBMWs fortunes further improved with the launching of its 1500 mode l Indeed, this first sports S ! Dsedan secured the companys prominence in the automotive market for the foreseeable future The S ! Dbalance sheet showed a profit of DM 3 82 million in 1963 and a six percent dividend was paid By S ! D S ! Dthe end of the decade, the companys long-suffering shareholders were much happier Nine more S ! Dmodels had been introduced, sales for 1969 set a new record of 144,788 cars, and turnover was upto DM 1 4 billion The 1970s, a period of dramatic growth in Western Europe, proved to be a time S ! D S ! Dof significant reorganization and development at BMW All motorcycle production was moved to S ! DWest Berlin, a new plant was opened, the popular 520 sports sedan was launched (1972), theDingolfing plant in Lower Bavaria was further expanded (providing jobs for 15,000 farmworkers),and following the establishment of the European Economic Community, BMW subsidiaries were setup in member countries Halfway through the decade, a U S importing, marketing, distribution, and S ! D S ! D S ! Dsupport subsidiary was formed in Montvale, New Jersey, and later in the 1970s the company built a BiZdoM : Companies History Part 1car plant at Steyr in Austria S ! DEarly in the 1970s, it appeared that Bayerische Motorens interests in motor racing, operated byBMW Motorsport GmbH, might be curtailed; in fact, however, the comp any was able to expand itsracing activities For some years, BMW had been the leading producer of racing car engines in the S ! Dclassification known as Formula 2; the company now decided to compete in the Formula 1 market aswell Success was swift In 1975, Nelson Piquet won the Formula 1 World Championship in a BMW - S ! D S ! Dpowered Brabham This was the first turbo-charged engine to win in the 34-year history of Formula 1 S ! Dracing S ! D@Team BiZdoM 98

BIZDOM : COMPANIES HISTORY PART 1 1990s: The Rover Saga As the recession increased in intensity, BMWs financial perform ance suffered, but not to the extent that other European manufacturers exhibited The most glaring decline in the companys growth took S ! D place at its U S operations, where the Japanese struck their first blow in the luxury car market, and S ! D S ! D the German marks strength against the dollar slowed sales and squeezed profit margins By 1992, S ! D BMW of North America was recording a 50 percent decline in sales from the subsidiarys peak years in the mid-1980s BMW management regarded the American situation as boding ill for its European S ! D operations To strengthen its position in the United States, the company announced plans that year S ! D to construct an approximately US$300 million assembly plant near Spartanburg, South Carolina, which, through the plants state-of-the-art equipment, was designed to produce 72,000 cars a year S ! D Half of this annual production volume the company planned to export overseas, which lessened BMWs dependence on its domestic production facilities and the associated high labor costs of German workers S ! D Rover Cars was sold to Phoenix Consortium, a loose alliance of English businessmen who paid a nominal fee of US$15 for the beleaguered carmaker Ford Motor Co acquired Rover Groups Land S ! D S ! D Rover SUV operations BMW retained ownership of Rover Groups Mini brand Milberg planned to S ! D S ! D release an entirely revamped line of Mini cars in 2001 Milberg also planned to develop an entry- S ! D level BMW in the midprice segment to take on Volkswagens US$14,000 Golf, which dominated the midprice segment in Europe The companys plans also called for the development of the luxury S ! D brand Rolls-Royce, which was set to come under BMWs control in 2003 As the company pushed S ! D forward, amid speculation that it would be acquired by a larger competitor, few certainties about its future existed, making the first years of the 21st century a critical period in BMWs history S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 99

Bloomberg L P S ! D S ! DBloomberg L P is a diversified information and media company, the core business of which is the S ! D S ! Dleasing of a multifunction computer terminal to primar ily financial and information industrycustomers such as banks, securities brokerage firms, government agencies, and media organizations S ! DMore than 75,000 such dual-screen terminals, known as "The Bloomberg," were used by more than140,000 organizations in more than 90 countries in 1997, including the White House, the Vatican,the Bank of England, the Federal Reserve, the Sultan of Brunei, and the World Bank Available in a S ! Dstandalone, a portable, and an "open," or PC-connectible version, the Bloomberg provides multimedianews, electronic communications, specialized financial computation services, and financial pricing andother data for all the major global securities markets including equities, money markets, currencies,municipals, corporate/Euro/sovereign bonds, commodities, mortgage-backed securities, derivativeproducts (such as futures), and government securities S ! DBesides its core data terminal business, Bloombergs diversified media products include BloombergNews (a news agency/wire service), Bloomberg and Bloomberg Personal magazines, BloombergBusiness Radio, Bloomberg Direct TV, Bloomberg Small Business TV, and Bloomberg Personal Online(an Internet site) Its oldest media venture is Bloomberg News, a global network of some 500 S ! Djournalists who produce 3,000 business stories a day in five languages from more than 50 newsbureaus worldwide S ! DBloomberg L P also maintains a large in-house staff of data collectors (Bloomberg Princeton, New S ! D S ! DJersey), sales people, and computer programmers and technical p ersonnel Forbes magazine ranked S ! DBloomberg L P 223rd in the 1996 Forbes 400 (by sales), and media mogul Rupert Murdoch has S ! D S ! Ddescribed Bloombergs founder, Michael Bloomberg, as "the most creative media entrepreneur of ourtime and, with Bill Gates, perhaps the most successful " S ! D BiZdoM : Companies History Part 1Desktop Data for the Bond Trader: 1966 --1984After earning an M B A from Harvard University in 1966, Massachusetts native Michael Bloomberg S ! D S ! D S ! Djoined the Manhattan securities trading firm of Salomon Brothers as a security counting cl erk andworked his way up the ladder until by the early 1970s he had been named chief of the firms equitytrading operation By the late 1970s he had been placed in charge of developing the firms in -house S ! Dcomputerized financial system, but office politics and Salomons merger with commodities-tradingfirm Phibro Corporation led to his ouster in 1981 As a partner in the firm, Bloomberg was entitled S ! Dto sell his share back to Salomon, however, and at age 39 he was freed to make a fresh start with a@Team BiZdoM 100

BIZDOM : COMPANIES HISTORY PART 1 tidy fortune of $10 to $20 million Rather than retire, Bloomberg decided to start a new business S ! D and, joining his experience with computers to his background in the finance markets, he began to envision a computerized information system that would allow Wall Stre et firms to tap into a real- time store of market data, financial calculations and projections, and other "analytics" via a computer terminal on their desks S ! D Shortly after Bloomberg installed its 5,000th terminal, Bloomberg was contacted by Wall Street Journal writer Matthew Winkler, who had learned about the machine while interviewing a Merrill Lynch trader in London a year or so before To his astonishment, Winkler had discovered that, along S ! D with the Associated Press, the Journal had begun using Bloomberg rather than the Federal Reserve Bank of New York as its only supplier of daily prices for U S government bonds, despite the fact that S ! D S ! D Bloomberg competed directly with Telerate, an electronic terminal -based bond data provider that the Journals parent company, Dow Jones, was just then in the process of buying for a billion and a half dollars In September 1988, Winklers positive profile of Bloomberg and his campaign to unseat S ! D Telerate as a financial data industry leader was published on page one of the Jo urnal, an irony that was not lost on Michael Bloomberg In June 1988 Bloomberg added a securities trading feature to S ! D the Bloomberg; in October a service known as "Sabre-izing" that allowed Bloomberg users to access prices contributed by a variety of firms was added; and in June 1989 a contributor system feature was added for financial research and commentary S ! D Bloomberg Business News: 1989 --1991 With Bloombergs global network now including a new office in Sydney, Australia, Bloomberg met with Winkler again in early 1989 to explore the possibility of expanding Bloombergs services to include business news He offered to bring Winkler aboard in 1990 as editor in chief of "Bloomberg S ! D Business News," a new venture that would not only spread the Bloomberg name, and thus sell more terminals, but would free Bloomberg from its reliance on the Dow Jones News Service for the Bloombergs business news feature With Bloombergs annual growth now far outpacing that of S ! D Reuters and Dow Jones and its revenue fast approaching $100 million, Bloomberg feared that Dow Jones would soon recognize the threat Bloomberg posed and thus decide to deprive it of one of itsBiZdoM : Companies History Part 1 | most valuable subscriber services Winkler was sold on Bloombergs vision and began to establish a S ! D Bloomberg office in Washington, D C to cover the political events that affected the business world S ! D S ! D S ! D He soon learned, however, that Bloomberg Business News needed to win formal accreditation from Washingtons Standing Committee of Correspondents (SCC), a congressionally sa nctioned body that controlled who had access to the capitals news makers In no hurry to welcome a new competitor S ! D into the elite group of national news journalists, the SCC rejected Bloombergs request for accreditation, arguing that Bloomberg Business News was not carried by any newspapers and, moreover, was partly owned by Merrill Lynch, creating a potential conflict of interest (Soon after S ! D Bloomberg News went on line in June 1990, however, Winkler had run a story casting Merrill Lynch in a negative light to establish the news arms independence ) S ! D Feedback at bizdomonline@gmail.com 101

To win legitimacy for Bloomberg Business News, Bloomberg enlisted the support of the AssociatedPress (AP), which received its bond prices free of charge from Bloomberg and gained millions ofdollars a year in compensation for allowing Bloomberg terminals to carry AP stories But even the S ! DAPs endorsement failed to win Bloomberg its news credentials By chance in 1990, however, Winkler S ! Dwas asked by staffers at the New York Times if they could receive a Bloomber g terminal for free S ! DBloomberg promised them one on one condition: that the paper consider publishing BloombergBusiness News stories, with the Bloomberg byline, in the Times and its news wires whenever itdeemed them "fit to print " In 1991 the Times agreed to the arrangement, and Bloomberg Business S ! DNews stories were soon appearing in the nations premier newspaper Within a year every major S ! Dnewspaper in the United States had requested the same arrangement: free Bloomberg terminals inexchange for occasional publication of Bloomberg bylined stories Bloomberg had won legitimacy as a S ! Dnational news sourceS ! D"King of the Media": 1996 --1997Bloomberg continued to insist that open data systems such as the Internet posed no real threat to hisbusiness, arguing that his value-added services, such as his securities-calculating analytics, wouldnever be publicly available on the Internet But competitors like Reuters and Dow Jones were S ! Dallowing customers to use the entire raw data feed from their services in any way and on anyplatform they wished, and by 1996 Bloomberg was finding that only 25 percent of his customerswere for Open Bloombergs In late 1996, therefore, Bloomberg announced the "Bloomberg Data S ! DLicense," which enabled his subscribers to gain direct acce ss to the entire data portion of his rawfeed in any amount they wished and for any use (except resale) Bloombergs prized analytics S ! Dfeatures would, however, remain strictly proprietary and unavailable for download By spring 1997, S ! DBloombergs business was evenly split: half his customers wanted to purchase his data for usethrough their PCs and half wanted the traditional Bloomberg terminal S ! D BiZdoM : Companies History Part 1With 75,000 terminals installed by May 1997, Bloomberg introduced a flat -panel display monitor toreduce the amount of desk space required by its terminals, closed a deal with Lexis -Nexis to provideits news and market summaries to the database giants 750,000 subscribers, and partnered withMultex Systems to provide its subscribers with investment research reports vi a its terminal In early S ! D1996 Bloomberg announced its entry into yet another corner of the media industry with the unveilingof Bloomberg Press publishing and its two imprints, Bloomberg Personal Bookshelf (for consumers)and Bloomberg Professional Library (for financial workers) A year later it announced a venture with S ! DAT&T to make Bloomberg news and market information accessible to on -the-go commuters through@Team BiZdoM 102

BIZDOM : COMPANIES HISTORY PART 1 AT&T "PocketNet" cell phones, which would contain a modem that would pick up a text -based version of Bloombergs data and display it on the phones small screenS ! D Meanwhile, Bloomberg Business News, rechristened Bloomberg News in 1997, had expanded to 70 news bureaus worldwide and was carried in more than 800 newspapers around the world, and Bloomberg Information Television was being distributed to more than 40 international affiliates In S ! D 1996 Bloomberg admitted that his ultimate goal was a 24 -hour local and international news service produced by local professionals around the world in each countrys local language Even in its core S ! D business, leasing data terminals, Bloomberg was now resolutely global: almost half its business came from overseas In late 1996 Bloomberg bought back one-third of Merrill Lynchs 30 percent stake in S ! D his company for $200 million To reporters he disclosed that although he had no intention of taking S ! D Bloomberg public he was considering starting a new financial newspaper in Great Britain and perhaps one day launching a cable news network when television became all -digital in the early 2000s "The future belongs to multimedia, not one-product companies," he told them "Im going to S ! D S ! D make sure that were one of those New Age companies " S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 103

CASIO Computer Co , Ltd S ! D S ! D1946: Kashio family founds Kashio Manufacturing in Tokyo S!D1957: Company introduces the first purely electric small calculator; incorporates as CASIOComputer Co , LtdS!D S!D1965: Casio introduces the first desktop electronic calculator with a memory S!D1972: Casio Mini, the first calculator for the mass market, debuts S!DThe company was founded in Tokyo in 1946 by the Kashio family under the name KashioManufacturing Four Kashio brothers--Toshio, Kazuo, Tadao, and Yukio--and their father envisioned a S ! Dbusiness that was to be managed under a spirit of creation; ever since, the com pany philosophy hasremained that of creativity and contribution Three of the Kashio brothers still own about 10 S ! Dpercent of all outstanding Casio stock, and the Kashio family has retained effective financial controlof the company The Kashio brothers remain active in the management and operation of the S ! Dcompany as well: Toshio Kashio serves as chairman, and Kazuo Kashio is president S ! DThe company was incorporated in 1957 as Casio Computer Co , Ltd The name Casio is an S ! D S ! Danglicized version of Kashio, demonstrating that early on the company was acutely aware of theeconomic significance of international marketing The Kashios believed that in the post-World War II S ! Denvironment a Westernized name would render the companys consumer and business productsmore marketable, both domestically and internationally The incorporation occurred around the same S ! Dtime as Toshio Kashios invention of the first purely electric&mdash opposed to electromechanical --small calculator The company capitalized on this invention and became the only Japanese S ! Dmanufacturer to specialize in electric calculators After the introduction of semiconductors in the S ! Dmid-1960s, electromechanical technology was replaced with electronic technology, and in 1965 Casio BiZdoM : Companies History Part 1introduced the worlds first desktop electronic calculator with a memory Over the succeeding S ! Ddecades, Casio consistently sought to expand its product line while relying upon calculators as itsprimary base of operations S ! DIn the 1970s Japanese electronic products, particularly consumer electronics, began to capture alarger share of the expanding U S market By the mid-1970s Japanese electronic manufacturers S ! D S ! D S ! Dcame to dominate the U S electronic-calculator market Japanese companies competed fiercely for S ! D S ! D S ! Dmarket share, and eventually only Sharp and Casio were left Casio aimed for the bottom of the S ! D@Team BiZdoM 104

BIZDOM : COMPANIES HISTORY PART 1 market, selling small, low-cost calculators with a variety of novel functions The Casio Mini, which S ! D debuted in 1972, was in fact the worlds first calculator aimed at the mass market S ! D In 1991 Casio acquired an interest in the Asahi Corporation, a manufacturer of electronic appliances, calculators, and telephone answering machines, and began to diversify into new and promising product areas It developed a personal digital assistant (PDA) with the Tandy S ! D Corporation, a small computer that could interface with traditional personal computers, as well as recognize handwriting and send e-mail Casios digital diaries became extremely popular with S ! D children in the mid-1990s These handheld devices combined traditional datebook function--calendar, S ! D alarm clock, phone directory, memo pad--with functions of immense appeal to school-age consumers, including fortune-telling, secret passwords, a matchmaking adviser, and the virtual pet When the S ! D user pressed the pet button, a puppy would appear on the screen and do tricks Casios diaries S ! D were such a hit that production had to expand 20 percent in 1994 to keep up with demand Later S ! D models had built-in infrared beam technology that allowed users to send mes sages to friends diaries S ! D Sales of the diaries helped Casio increase its revenues in Japan in 1994, but the strong yen continued to cut into the profitability of the companys exports Casio increased the amount of its S ! D manufacturing that was done overseas in order to combat this trend While only 30 percent of S ! D Casios production was overseas in 1993, two years later 80 percent of the companys products were made in foreign plants By 1996 Casio had plants in Singapore, Malaysia, Thailand, and Korea, in S ! D addition to its Hong Kong, Taiwan, and North American plants S ! D Another hot product for Casio in the mid-1990s was its G-Shock line of shock-resistant watches First S ! D introduced in 1983, the watches became a craze in the mid -1990s both in Japan and in other developed countries, particularly among younger people By early 1998, some 500 different models S ! D had been introduced and more than 19 million units had been sold S ! D Casio teamed up with Microsoft Corporation to develop the Cassiopeia handheld PC, which was launched in North America in November 1996 The device featured an operating system calledBiZdoM : Companies History Part 1 | S ! D Windows CE, a scaled-down version of Microsofts Windows In June 1998 the Cassiopeia E-10 was S ! D introduced into North America This was a palm-sized model, again running on Windows CE, and S ! D featuring pen-based operations and a variety of software applications, including personal calendars and contact databases The Cassiopeia and other handhelds using Windows CE proved to be no S ! D match for the sleeker, more lightweight, and simpler-to-use personal digital assistants introduced by Palm Inc , which held almost 80 percent of the handheld market in the late 1990s Various Windows S ! D S ! D CE handhelds as a group garnered only a 10 percent share S ! D Feedback at bizdomonline@gmail.com 105

CREDIT AGRICOLEFrances "green bank" was nicknamed for its roots in agriculture Crédit Agricole, composed of the S ! DCaisse Nationale de Crédit Agricole and 90 regional banks, which together own 90% of the CaisseNationale, is a unique cooperative organization and one of the most important bankin g groups inFranceS ! DIn the mid-1800s, it became clear that there was a need for agricultural credit in France, especiallyafter a crop failure in 1856, which left rural areas in dire straits One of the main causes of low S ! Dproduction was a lack of sufficient credit for farmers, who often could not meet banks normal creditrequirements In 1861, the government attempted to remedy this problem, asking Crédit Foncier to S ! Destablish a department expressly for agriculture But the newly formed Societé de Crédit Agricole S ! Daccomplished little By 1866, though some steps towards improvement had been suggested, the S ! Doutbreak of the Franco-Prussian War prevented their implementation The society folded in 1876 S ! D S ! DLater, several financial cooperatives sprang up independent ly among farmers, operating in ruraltowns on a system of mutual credit In 1885, the first society for agricultural credit was founded at S ! DSalins-les-Bains in the Jura; the maximum amount of credit a farmer could get was FFr500, the priceof a yoke of oxen By the end of the century, when talk of modernizing Frances agricultural economy S ! Dbecame more urgent, it was decided that this system of localized credit was more suitable for therural population than credit emanating from a big central bank S ! DIn 1894, the Chamber of Deputies proposed a law to organize personal or short -term rural credit,based on the methods of the small credit societies already in existence The law formalized the S ! D BiZdoM : Companies History Part 1requirements for the societies formation, made them exempt from taxes, and gave them a monopolyon state-subsidized loans to farmers In 1897, the Bank of France made funds available to the banks S ! Dthrough the minister of agriculture, and in 1899, a law was passed to create regional banks to act asintermediaries between the local societies and the minister of agriculture The local cooperatives S ! Dwere self-governing societies with limited liability Their members were mostly individual farmers S ! D S ! DEach local cooperative was affiliated with a regional bank, where it transferred all d eposits andobtained funds for loans The local banks elected a committee to control the regional banks, which S ! Dwere mainly responsible for medium- and long-term loans Thus, the hierarchy of Crédit Agricole was S ! Destablished S ! D@Team BiZdoM 106

BIZDOM : COMPANIES HISTORY PART 1 One of the reasons Crédit Agricole was so successful was its reliance on individual farmers In the S ! D mid-1800s most of Frances agricultural produce came from small farms rather than large estates, and the French government wanted to preserve the small family farm for several social and economic reasons For instance, it was widely believed that small farmers cultivated the soil most intensively S ! D and so made better use of it It was also thought to be better to have many small family farms than S ! D to create a "proletariat" to work on large farms Nevertheless, Frances agricultural methods were in S ! D need of modernization, and Crédit Agricole helped small farmers buy new equipment and supplies to improve production S ! D In 1910, a law established long-term personal credit for the purchase of land to encourage young men to farm Only small holdings could acquire these loans, which could not exceed $1,600, and only S ! D young farmers were eligible; their characters were the basis for their credit S ! D When World War I broke out in 1914, the European banking sy stem was under severe duress due to difficulties with the gold exchange However, gold was still in circulation in France and the Bank of S ! D France was able to increase its issue of notes, restoring some financial order Throughout the war, S ! D agricultural production was at a minimum, and Crédit Agricole, still a young institution, was able to survive only through continued support from the government Agricultural output did not regain its S ! D prewar level until 1930 S ! D In 1920, a law was passed to organize the office National du Crédit Agricole, a national society run by civil servants and the elected representatives of the regional banks but controlled by the government--the minister of agriculture would name its director Office National du Crédit Agricole S ! D also became responsible for the distribution of treasury loan funds and for rediscounting the short - term loans of local and regional societies In 1926, the name was changed to Caisse Nationale de S ! D Crédit Agricole (CNCA) S ! DBiZdoM : Companies History Part 1 | As Crédit Agricole grew in resources and capacity, it began to help not only individual farmers but also the cooperative trade movement gaining ground among agricultural groups These new S ! D agricultural cooperatives, which organized industries in a way similar to unions, could often not raise the money to organize, and they needed Crédit Agricoles support In turn, the cooperatives helped S ! D Frances recovery after the war S ! D World War II hurt agriculture less than the first war had, and after the war, there was a period of rapid growth, spurred on by Crédit Agricoles loans Between 1941 and 1945, under the Vichy S ! D government, a Bank Control Commission was established and attempts were made to prevent the Feedback at bizdomonline@gmail.com 107

creation of new banks or branches After 1945, however, the Bank of France and the other main S ! Dbanks were nationalized A hierarchy was born, with the Ministry of Finance and the Bank of France S ! Dat the top, giving the government the ability to sway the distribution of credit In this sense, it won S ! Deven more power to help further Crédit Agricole S ! DAfter the war, agriculture underwent a massive modernization plan Crédit Agricole played a major S ! Dpart by supplying capital for fertilizer, equipment, electrification, and improved water supplies Since S ! Dagricultural credit was subsidized by the government, and due t o the quality of Crédit Agricolesdecentralized commercial network, agricultural institutions had the most rapid expansion rate of allthe banks Between 1938 and 1946, the capital funds of the regional societies increased from S ! DFFr1 6 billion to FFr28 billion Crédit Agricole extended its medium- and long-term loan operations S ! D S ! Dand the government established special loans for farm equipment, causing a big increase in thenumber of farmers driving tractors S ! DFinancing for small farms continued; as late as 1958, cooperatives were favored over large farms S ! DBut Frances farm productivity was below that of most other European countries, and some blamedthe low productivity partially on the credit advantages given to small farms, which kept competitionat bay Earnings did not improve and the industry remained dependent on loans S ! D S ! DAbout this time, the government began to apply stringent lending ceilings to the whole financialsystem to restrain the money supply and hold down inflation This led many banks to diversify into S ! Doverseas business and the Eurodollar market A boom in French exports also created a demand for S ! DFrench banking expertise in the export markets Crédit Agricole, however, held back at first from S ! Dinternational expansion, while growing rapidly with th e French economy S ! D BiZdoM : Companies History Part 1In 1966, the state decided to allow Crédit Agricole to widen its operations to become more flexiblethan a bank strictly for farmers Under the new reform, Crédit Agricole was allowed to make loans to S ! Dindividuals and organizations not specifically connected with agriculture It was also allowed to create S ! Dsubsidiaries One of the most important subsidiaries it created was the Union dEtudes et S ! DdInvestissements, which used its resources to finance individual investments S ! DIn 1967, the government announced that all resources collected by Crédit Agricoles regional andlocal banks, previously deposited in the French Treasury, would now be deposited with the CaisseNationale de Crédit Agricole S ! D@Team BiZdoM 108

BIZDOM : COMPANIES HISTORY PART 1 In 1971, the Union dEtudes et dInvestissements , with an eye on important developments in the food processing business, created another subsidiary, LUnion pour le Developpement Régional, which was mainly to provide loans to agricultural and food processing industries or other similar operations in regions where they would create jobs S ! D In July of the next year, the minister of finance, Giscard dEstaing, warned Crédit Agricole about its diversification, pointing out that its purpose must stay mainly agricultural and its activities balance financial and social profit, a recurring political theme in Crédit Agricoles development Other large S ! D banks complained about Crédit Agricoles monopoly on farm credit and its tax -free status, which had allowed it to grow into one of the largest banks in France, while those concerned about farm aid worried that the banks purpose would be diffused Critics blamed Crédit Agricoles expansion on the S ! D other banks inertia and politicians reluctance to attack Crédit Agricole for fear of losing the support of farmers By 1975, Crédit Agricole had begun its international activities, focusing mainly on foreign S ! D agricultural loans and export companies S ! D In 1977, when the U S dollar was low, Crédit Agricole ranked briefly as the biggest bank in the S ! D S ! D world In 1978, Crédit Agricoles profit of FFr400 million was more than the other three main French S ! D banks combined The bank had begun to finance housing (it is now the leading mortgage lender in S ! D France), silo construction, and exports, and had also become a money market lender After other S ! D French banks campaigned for several months against Crédit Agricoles advantages, the government finally curtailed those privileges Crédit Agricoles surpluses began to be taxed as profits, and for S ! D three years, the bank was prohibited from opening new branches in towns where it had no official purpose and competed unfairly with other banks S ! D The compensation the government offered may have added more to Crédit Agricoles growth than the privileges that were taken away Before the new rules, the bank could only make direct loans in S ! D communities of 7,500 people or fewer, but under the new restrictions that limit was extended to 12,000 S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 109

Cadbury Schweppes PLCKey Dates:1790: Jacob Schweppe, Jacques Paul, and Henry Gosse join to form Schweppe, Paul &Gosse S!D1792: Jacob Schweppe moves to London S!D1824: John Cadbury begins selling cocoa and chocolate in Birmingham, England S!D1834: William Evill and John Kemp-Welch acquire Schweppes, as the company is nowknown S!D The history of Cadbury dates back to 1824, when John Cadbury opened his grocery business in Birmingham From the start, drinking-cocoa and S ! D chocolate were his most popular products, and in 1831 he moved to larger quarters and began manufacturing his own cocoa products In 1847 he S ! D took on his brother Benjamin as a partner Two years later the Cadbury S ! D brothers spun off their retail operations to Richard Cadbury Barrow, a nephew, and concentrated on manufacture and wholesale distribution In S ! D 1853 Cadbury Brothers received a royal warrant as manufacturers to Queen Victoria; the company still holds the distinction of being confectioner to the Crown S ! DShortly thereafter, however, business began to decline The two Cadbury brothers dissolved their S ! Dpartnership in 1860 when Benjamin left the company, and John also r etired the very next year He S ! Dleft the business to his sons Richard and George, who continued to struggle for several years But in S ! D1866, the new Cadbury brothers introduced an improved process for pressing cocoa butter out of thecocoa bean to produce cocoa essence This resulted in purer drinking-cocoa and plentiful cocoa S ! Dbutter that could be made into eating chocolate In 1868, Cadbury Brothers began marketing its own S ! D BiZdoM : Companies History Part 1lines of chocolate candy, reviving its fortunes and breaking the stranglehold that Fren ch confectionershad on the British market S ! DInnovation and Expansion: 1879 -1964Renewed success brought with it renewed expansion In 1879 Cadbury Brothers began constructing a S ! Dnew factory outside Birmingham In 1881 the firm received its first export order from a S ! Drepresentative in Australia, and by the middle of the decade its overseas business had expanded to@Team BiZdoM 110

BIZDOM : COMPANIES HISTORY PART 1 New Zealand, South Africa, India, the West Indies, and both North and South America In 1899 it S ! D incorporated as Cadbury Brothers Limited, with George Cadbury as chairman S ! D In 1906 Cadbury Brothers introduced a new recipe for milk chocolate, marketed under the name Cadbury Dairy Milk, which has remained a mainstay of its product line ever since After World War S ! D I, innovations in industrial technology made the manufacture of chocolate cheap enough to price chocolate candy for a wider market, and the company accordingly retooled its factory for mass production in the late 1920s Cadbury Brothers opened its first overseas plant in Australia in 1922, S ! D and more foreign production ventures followed from its 1919 acquisition of J S Fry & Sons In 1932 S ! D S ! D S ! D Frys Canadian plant began to manufacture Cadbury products, and the next year Cadbury Fry, now a subsidiary of Cadbury Brothers, opened a factory in Ireland Cadbury Brothers also began to S ! D manufacture in South Africa in 1939 and India in 1947 S ! D Throughout the postwar years, Cadbury maintained its position as the leading chocolate manufacturer in the worlds leading per-capita candy-consuming nation ("They chew through plays S ! D and they chew through films and they chew in trains," a theater critic for the London Daily Mail once lamented "They suck lollies through Macbeth and Hamlet, and they while away Tennessee Williams S ! D with the chocolates with the scrumptious cent ers ") In 1962 Cadbury and Cadbury Fry, along with S ! D their competitor Rowntree, accounted for 51 percent of British candy sales In 1964 Cadbury entered S ! D the sugar-candy business when it acquired confectioner Pascall Murray All the while, the company S ! D remained a family business At the time of the merger with Schweppes, its chairman had always S ! D been a direct descendant of John Cadbury and the vast majority of its stock belonged to family members or trusts S ! D Testing the Waters: The Early Years of Schweppes Limited, 1790-1851 The same cannot be said, however, for Schweppes Limited, which has not felt the guiding hand of a Schweppe for almost 200 years The company bears the name of Jacob Schweppe, a German-born S ! D jeweler and amateur chemist who entered into a join t venture in 1790 with pharmacist Henry Gosse, engineer Jacques Paul, and his son Nicholas Together, they formed Schweppe, Paul & Gosse, which S ! DBiZdoM : Companies History Part 1 | devoted itself to producing artificial mineral water Schweppe moved to London in 1792 to establish S ! D the companys English operations, and when the partnership dissolved the next year he retained the business for himself S ! D In those days, aerated water was believed to have medicinal value, and Schweppes brand was popular because it contained a higher degree of carbonation than its competitors In 1799 Schweppe S ! D sold a 75 percent interest in his business to three men from the island of Jersey and retired The S ! D company, however, continued to use the Schweppe name S ! D Feedback at bizdomonline@gmail.com 111

In 1834 Schweppes, as it was now named, was bought by Wil liam Evill and John Kemp-Welch, whosedescendants would remain associated with the company until 1950 In 1836 the company received S ! Dits first royal warrant, from the Duchess of Kent and Princess Victoria, soon to become QueenVictoria Schweppes also gained substantial prestige when it was granted a catering concession for S ! Dthe Great Exhibition of 1851 S ! DDiversification and International Growth: 1870 -1969The company began to introduce new product lines in the second half of the century Schweppes S ! Dstarted marketing ginger ale in the 1870s Tonic water, now its most famous product, also appeared S ! Dat about this time in response to a demand from Britons returning from India who had developed ataste for the solution of quinine, sugar, and water they had drunk th ere as a malaria preventative In S ! D1885, Schweppes introduced a carbonated lemonade Such was the companys success during the S ! DVictorian era that it went public in 1897 S ! DBut Cadbury Schweppes began to take on Coke and Pepsi with increasing vigor In 1986 it bought S ! Dthe Canada Dry and Sunkist soft drink lines from RJR Nabisco for $230 million RJR Nabisco was S ! Danxious to leave the soft drink business in the face of increased competition from Coca -Cola andPepsi, which were growing ever larger Pepsi had just acquired Seven Up, and Coca-Cola had agreed S ! Dto buy Dr Pepper, a deal that would later fall apart Sunkist was in danger of losing market share to S ! DCoca-Colas new Minute Maid line and Pepsis Slice But while RJR Nabisco was ready to get out, S ! DCadbury Schweppes was desperate to get into the market Buying Canada Dry and Sunkist increased S ! Dits share of U S soft drink sales to 5 3 percent, making it the fourth largest soft drink company in S ! D S ! D S ! Dthe nation S ! DCadbury Schweppes then spun off Canada Drys Canadian opera tions to Coca-Cola for $90 million It S ! Dneeded the cash to acquire 30 percent of Dr Pepper as part of a consortium that included the BiZdoM : Companies History Part 1brokerage house Shearson Lehman Brothers and Dallas -based investment group Hicks & Haas S ! D@Team BiZdoM 112

BIZDOM : COMPANIES HISTORY PART 1 Calvin Klein, Inc S ! D Key Dates: 1968: The Calvin Klein brand is launched S!D 1973: Klein wins his first Coty American Fashion Critics Award S!D 1979: Calvin Klein controls one-fifth of the designer jeans market S!D 1982: Klein enters the underwear business S!D 1985: A new perfume called Obsession is launched with a $17 million advertising campaign S!D 1989: A Unilever Co subsidiary purchases the Calvin Klein cosmetics/fragrance line S!D S!D 1994: A unisex fragrance, cKone, is introduced; the companys underwear business is licensed to Warnaco Group Inc S!D Rocketing to Stardom in the 1970s Born and raised in New York Citys borough of the Bronx, Calvin Richard Klein decided he wanted to be a fashion designer at an early age After graduating from the Fashion Institute of Technology in S ! D 1963, he worked for womens coat and suit manufacturers in Manhattans garment district before opening his own business in 1968 A childhood friend, Barry Schwartz, loaned him $10,000 in start - S ! D up money and joined the firm a month later, after the family supermarket in Harlem that Schw artz had inherited was gutted in the riots that followed the assassination of Martin Luther King S ! D Klein rented a dingy showroom to exhibit a small line of samples His big break came when a vice- S ! D president at Bonwit Teller stopped at the wrong floor of the building, liked what he saw, and invited Klein to bring his samples to the presidents office Klein wheeled the rack of clothes uptown S ! D personally and won an order of $50,000 (retail) on the spot Bonwits gave the merchandise S ! D impressive exposure, with window displays in its flagship Fifth Avenue store and full -page ads in the New York Times Soon after, Calvin Klein was besieged by orders The fledgling company booked $1 S ! D S ! D million worth of business in its first year, reaching sales volume of $5 million by 1 971BiZdoM : Companies History Part 1 | S ! D Klein mainly designed womens coats and two-piece suits until 1972, when he began concentrating on sporty sweaters, skirts, dresses, shirts, and pants that could be mixed and matched for a complete wardrobe The clothing featured the simplicity of line, muted earth tones, and classic S ! D fabrics that characterized his work and gave it an air of understated elegance Klein won a Coty S ! D American Fashion Critics Award--fashions Oscar--in 1973 He received an unprecedented third S ! D consecutive Coty Award for womens wear in 1975 and, at age 32, was elected to the groups Hall of Fame That fiscal year (ending June 30, 1975) the firm shipped $12 million worth of merchandise, S ! D including swimsuits and dresses It earned another $2 million to $6 million from licensing furs, S ! D Feedback at bizdomonline@gmail.com 113

umbrellas, sheets, shoes, scarves, belts, dresses, sunglasses, suedes, and patterns Klein not only S ! Ddesigned every item carrying his name but closely watched every step of the production process S ! DCompany revenues rose to $40 million in fiscal 1976 a nd a startling $90 million in 1977 Because S ! Dits prices were generally below those of its two major competitors, Ralph Lauren and Anne Klein, thefirm won the loyalty of young working women as well as older, wealthier buyers Calvin Klein S ! Dmerchandise was so hot that the company could pick and choose among stores that wanted to carrythe companys products and blackball those that dared to try to return unsold goods Seven hundred S ! Dbuyers and reporters were turned away from Kleins fall 1978 fashion show; the buyers who got inplaced $28 million worth of orders within 48 hours S ! DKlein introduced his first menswear collection in 1978, telling the New York Times Magazine that heapproached mens clothing "with the same philosophy as the womens Theyre for Americans who S ! Dlike simple, comfortable but stylish clothes--but with nothing overscale or extreme " No less than 779 S ! Dfabrics were used in the European-produced collection, which ranged from neckties to suits andovercoats The production and sale of most of the mens clothing was licensed to Bidermann S ! DIndustries Also in 1978, Calvin Klein introduced his own line of fragrances and a complete makeup S ! Dcollection of 18 beauty and skin-care products that stressed neutral colors to give the face a naturaleffect However, the lightweight, rosy perfume (at $85 an ounce) needed to anchor the collection S ! Dnever caught on with the public The fragrance and cosmetics business was sold to Minnetonka, Inc S ! D S ! Din 1980 S ! DCalvin Klein jeans, by contrast, were to become the companys biggest hit Kleins first attempt, in S ! D1976, to capitalize on the designer-jeans craze--at $50 a pair--was a failure The following year, S ! Dhowever, his company cut a deal to design the product for Puritan Fashions Corp , the largest dress S ! Dmanufacturer in the world Klein raised the groin in his jeans to accentuate the crotch and pulled the S ! D BiZdoM : Companies History Part 1seam up between the buttocks to give the rear more shape A Times Square billboard of model Patti S ! DHansen on her hands and knees, her derriere arched skyward and the Calvin Klein label on her righthip visible, caused a sensation and remained in place for four years By 1979, Calvin Klein was S ! Dsecond to Gloria Vanderbilt in designer-jeans sales, with one-fifth of the market A company S ! Dspokesman observed, "The tighter they are, the better they sell " S ! DThe biggest lift to Calvin Kleins jeans was the television campaign directed by Richard Avedon thatfeatured 15-year-old model/actress Brooke Shields provocatively posed in a skin -tight pair of CalvinKlein jeans In the best-remembered spot, she pronounced, "Do you know what comes between me S ! D@Team BiZdoM 114

BIZDOM : COMPANIES HISTORY PART 1 and my Calvins? Nothing " In another she declared, "Ive got seven Calvins in my closet, and if they S ! D could talk, Id be ruined " These suggestions of underage sexuality struck a public nerve and, S ! D following a flood of complaints, the New York flagship stations of all three networks banned the two ads from the air Klein could shrug off the criticism because sales of his jeans were then climbing to S ! D two million pairs a month He added a jeans-inspired collection that included shirts, skirts, and S ! D jackets, also licensed to Puritan These products accounted for about $100 million in sales in 1980 S ! D S ! D Branching Out in the 1980s In 1982, Calvin Klein entered the underwear business, once again exploiting the allure of youth in provocative poses to push the product Photographer Bruce Webers beefcake ads featured a brawny S ! D Olympic pole vaulter in various states of well-endowed undress When the company rented space in S ! D 25 New York bus shelters to display advertising posters featuring the underwear, all 25 had their glass shattered and posters stolen overnight The follow-up was predictable--a line of womens S ! D underwear featuring male-style briefs and boxer shorts that retained the fly front Both campaigns S ! D were hits The mens line was part of the Bidermann license, which lapsed in 1987, while the S ! D womens skivvies so outstripped Calvin Kleins own manufacturing capabilities that in 1984 this division was sold to Kayser Roth Corp , a unit of Gulf & Western Industries, for about $11 2 million S ! D S ! D S ! D Calvin Klein continued to design and create advertising for womens underwear, later adding hosiery and sleepwear lines S ! D Undeterred by suggestions that with the end of the "decadent" 1980s sex no longer sold, Klein introduced a new line of underwear, including $16 fly -button shorts, in 1992 with ads featuring Marky Mark (Mark Wahlberg), a muscular rap star The campaign proved successful with both S ! D young men and women, grossing $85 million for the company within 12 months In 1994, a S ! D partnership later renamed Designer Holdings Ltd bought Calvin Kleins fading jeans business for S ! D about $50 million Calvin Klein introduced a khaki collection in 1996 and also licensed it to Designer S ! D Holdings, along with CK Calvin Klein Jeans Kids and CK Calvin Klein Kids Underwear, also introduced that year Designer Holdings was acquired by Warnaco in 1997 S ! D S ! D By 1995, when it opened a four-level, 22,000-square-foot minimalist-style emporium at Madison Avenue and East 60th Street in Manhattan, Calvin Klein had six stores in the United States In S ! DBiZdoM : Companies History Part 1 | addition, during 1993 and 1994, the company licensed Calvin Klein boutiques to operators in Barcelona, St Moritz, Zurich, and Singapore and formed a partnership with four Japanese S ! D companies to create in-store shops there and to produce more licensed apparel Four stores--in S ! D Manhattan, Dallas, Palm Beach and Costa Mesa, California --remained in 1997 The company also S ! D had an outlet store in Secaucus, New Jersey S ! D In 1994, Calvin Klein introduced cKone, a unisex fragrance that became another smash hit, grossing $60 million in its first three months It was followed in 1996 by cKbe, promoted in a $20 million S ! D monochrome print and TV campaign directed by Richard Avedon that featured young models Feedback at bizdomonline@gmail.com 115

exposing lots of pierced and tattooed flesh In a poll conducted by Louis Harris for USA Today, only 4 S ! Dpercent of the respondents expressed strong liking for the ads, while 57 percent said they dislikedthem Advertising experts suggested that what was turning off the general public was precisely what S ! Dwas attracting the people who were buying the product, especially teenagers S ! DAdvertisements for Calvin Klein jeans also continued to provoke controversy Posters featuring a S ! Dnotably skinny model, Kate Moss, were festooned with st ickers reading "Feed this woman" by aBoston-area group called Boycott Anorexic Marketing The company ignored the group but was S ! Dunable to shrug off the reaction, especially from Christian groups, created by its summer 1995campaign for CK Jeans, featuring models who appeared to be teenagers in states of undress that,according to one writer, "suggested auditions for low -budget porn movies " For the first time the S ! Dcompany retreated, pulling the ads, which the designer maintained had been "misunderstood S ! D S ! D S ! D S ! DPeople didnt get that its about modern young people who have an independent spirit and do thethings they want to and cant be told or sold " A U S Justice Department investigation ended without S ! D S ! D S ! Dcharges after federal agents determined that no minors we re used in the ads S ! D BiZdoM : Companies History Part 1@Team BiZdoM 116

BIZDOM : COMPANIES HISTORY PART 1 Canal Plus Key Dates: 1984: Canal Plus begins broadcasting S!D Canal Plus was the creation of André Rousselet, president of the French media and advertising giant Havas While some observers were surprised that the top publicity group in France would become S ! D involved in a medium that needed no outside publicity, Havas hoped that the innovative move would open up a potentially profitable market Rousselet decided to launch a subscription television channel S ! D in November 1984 to offer the French public an alternative to the comedies and variety shows typically featured on the three government-owned channels then in existence Contending that no one S ! D would pay for television programming, critics dubbed the company Canal Minus S ! D In fact, subscriptions were extremely low at the onset, and the company announced first year losses of FFr 330 million Moreover, some politicians, including Laurent Fabius, Frances prime minister, S ! D were not in favor of commercial television and petitioned for a retractio n of the Canal Plus broadcasting license Rousselet, however, was a personal friend, golf partner, and former chief of S ! D staff of President François Mitterand; he was able to acquire a government concession that gave Canal Plus an all but official monopoly on subscription television In addition, Rousselet and Pierre S ! D Lescure, the companys director-general, put forth an aggressive spring schedule of blockbuster films, depleting all its programming for the next season, in an effort to attract viewers Suddenly, S ! D subscriptions picked up This initial success convinced Canal Plus that giving viewers what they were S ! D not able to get on government television--American hit comedies and French drama--was central to its future success S ! D In addition to Rousselets effective political networking and the channels innovative programming, Canal Plus benefited from lack of competition, high taxes on home video recorders, and a sluggish video market The use of an existing broadcast channel and decoders allowed the station to a void S ! D paying cable companies to broadcast shows and gave the station almost immediate national coverage These advantages proved to be worth the expense the company incurred to improve early S ! D decoders, which were known for having technical problems S ! DBiZdoM : Companies History Part 1 | Moreover, Canal Plus was exempt from regulations that required free channels to air films only three nights of the week and to wait three years to show a movie after its box -office release Thus, Canal S ! D Plus was able to broadcast feature films only a year after th eir cinema releases The channel also S ! D managed to use some restrictions to its own advantage For example, the Socialist governments S ! D regulations required Canal Plus to broadcast a few hours a day with an unscrambled signal so that all television viewers could gain from the new service, and these unscrambled broadcasts were turned into ideal free promotion for the channels regular programming Two of every three subscribers first S ! D watched the channel during these free hours, according to Pierre Lescure The government also S ! D required the channel to devote no more than 45 percent of its air time to films This restriction S ! D Feedback at bizdomonline@gmail.com 117

encouraged Canal Plus to develop other interesting programming; as a result, sports programsbecame one of the channels specialties, with the network gaining exclusive rights to national soccermatches and top-quality coverage of boxing and American football When the government succumbed S ! Dto pressure from the film industry to ban the companys movie broadcasting during peak cinema -going hours, the station expanded its programming beyond films to interview shows, documentaries,and soft pornography S ! D BiZdoM : Companies History Part 1@Team BiZdoM 118

BIZDOM : COMPANIES HISTORY PART 1 Canon Inc S ! D The history of Canon dates back to 1933, when a young gynecologist named Takeshi Mitarai worked with some technician friends to develop cameras; to do so they founded Precision Optical Instruments Laboratory in Roppongi, Minato-ku, Japan Their first major invention had applications that ranged S ! D far beyond the medical field In 1934 Mitarai and his colleagues developed Japans first 35 - S ! D millimeter camera, closely patterned after the German Leica 35 -millimeter camera, the industry standard They named it the Kwanon, after a Buddhist figure representing mercy In 1937 they S ! D S ! D incorporated their venture under the name Precision Optical Industry Comp any, Ltd S ! D In 1940 Precision Optical made a significant contribution to Japanese medical imaging technology when it developed the nations first indirect x-ray camera, which played a major role in preventing spread of tuberculosis in Japan When Japan went to war with the United States, the Japanese S ! D economy was entirely given over to supporting the military S ! D The company barely survived World War II It was unable to manufacture its mainstay 35-millimeter S ! D cameras for the duration of the war, and only Mitarais tireless efforts kept it afloat in the economic desolation that followed Japans surrender in 1945 With raw materials rationed and capital scarce, S ! D Mitarai had to scramble just to keep his production lines going and the companys finances in order S ! D He also drilled into his workers the importance of producing high -quality products, but his most important move may have been persuading the Allied occupation forces to stock Precision Optical cameras in their post exchanges and ships stores This arrangement laid the groundwork for Canons S ! D later success as an exporter; U S servicemen bringing their cameras home with them gave the S ! D S ! D company its first foothold in the U S market In 1947 Precision Optical changed its name to Canon S ! D S ! D S ! D Camera Company, Inc , using a transliteration of the original Kwanon S ! D S ! D Another international breakthrough for Canon occurred in the early 1950s, when news photographers covering the Korean War found that the best Japanese lenses were every bit as good as German lenses The export market began to open up, and Canon prospered throughout the S ! D decade The company created a U S subsidiary, based in New York, in 1955 and two years later it S ! D S ! D S ! D formed a European subsidiary, Canon Europa, headquartered in Geneva In 1956 Canon added an 8- S ! D millimeter movie camera to its product lines, and in 1959 it became the first company in the world to manufacture an 8-millimeter camera with a built-in zoom lens S ! DBiZdoM : Companies History Part 1 | Diversified into Business Machines in the 1960s By the early 1960s Canon had become the dominant Japanese producer of middle-priced cameras, leaving the higher end of the market to Nikon The company continued to grow, more than tripling in S ! D size between 1959 and 1963 In 1964 it ventured into business machines when it introduced the S ! D Canola 130 electronic calculator, the first in the world to use the now-standard ten-key keypad In S ! D 1970 Canon and Texas Instruments produced the Pocketronic, the first all -electronic hand-held calculator After entering the photocopier market in 1965 with the Canofax 1000, Ca non became an S ! D innovator in the field when it introduced its first plain -paper copier in 1968 Until that time Xerox S ! D had dominated the copier market with its own process, known as xerography Canons diversification S ! D Feedback at bizdomonline@gmail.com 119

moves were significant enough to prompt a name change; "Camera Company" was dropped from thename in 1969 and the company became simply Canon Inc S ! DIn spite of the companys engineering successes, however, Canon was plagued by weaknesses inmarketing strategy in the late 1960s and early 1970s Although it was a part of the spectacular S ! Doverall penetration of the U S market by Japanese calculator makers, the company failed for the S ! D S ! Dmost part to distinguish itself from its competitors It also frittered away its technical advances by S ! Dfailing to exploit their sales potential before rivals could catch up to them This problem affected its S ! Dcopier lines as well as its calculators In 1972 it developed the "liquid dry" copying system --so named S ! Dbecause it uses plain paper and liquid developer but turns out dry copies--but doubted its ownmarketing strength and feared that competitors would infringe on its patents Therefore, instead of S ! Dselling the system itself, it licensed the technology to other manufacturers, effectively wasting itsearnings potential These mistakes hindered Canons financial performance, and in 1975 it failed to S ! Dpay a dividend for the first time since World War II S ! DNew Product Development and Marketing Revitalized in the Mid-1970sInto this leadership void stepped Ryuzaburo Kaku, the companys managing director He won S ! Dapproval from Mitarai, who was still chairman and president, to change management and salespractices Under Kaku, Canon began to streamline its operations and chain of command and market S ! Dits products more aggressively In 1976 the company introduced its revolutionary AE-1 35-millimeter S ! Dcamera, which used a microprocessor to focus automatically and set the length of exposure, with anadvertising blitz led by television commercials featuring tennis star John Newcombe "It was a big S ! Dgamble because 35-millimeter cameras had never before been advertised on TV," Mitarai said, but itpaid off handsomely According to Fortune, January 12, 1981, by 1981 the AE-1 had become so S ! Dpopular that one industry analyst called it "the Chevrolet of the 35mm market " Kakus emphasis on S ! Dfaster new product development led to laser beam printing technology in 1975 and a new retinalcamera that made pupil-dilating drugs unnecessary in 1976 In 1977 Kaku was named president of S ! D BiZdoM : Companies History Part 1the company, succeeding Mitarai, who remained chairman S ! DIn 1982 Canon introduced the first personal copier, so called because all the essential reproductioncomponents were contained in a cartridge that users could replace themselves Again, it was S ! Daccompanied by a massive ad campaign, this time starring actor Jack Klugman In less than a S ! Ddecade, Canons salesmanship had undergone a radical change from passive to highly aggressive S ! DWhen Canon overtook Nikon as Japans camera sales leader in the early 1980s, former Nikonchairman Kyojiro Iyanaga explained his rivals success by saying, "We still make the best cameras S ! DCanon just outmarketed us " S ! D@Team BiZdoM 120

BIZDOM : COMPANIES HISTORY PART 1 Canon continued to introduce new products in the 1980s to compete effectively in mature markets S ! D Much of its success, however, came in new markets, such as integrated office workstations and desktop publishing systems Often that meant challenging large companies that were well entrenched S ! D in their markets In 1982 it came out with an electronic typewriter, initiating a one -on-one S ! D competition with International Business Machines (IBM) Within a year, it captured 11 percent of S ! D that market, while IBMs share shrank from 26 to 17 percent In 1983 it took on Xerox with a laser S ! D printer that offered similar quality at one-third the price Canon also engaged Ricoh in a rivalry over S ! D facsimile machines in the early 1980s and laid the groundwork for a future duel with IBM in the computer business It began a research push aimed at developing optical integrated circuits for S ! D personal computers of the future, and in 1984 Canon Sales started marketing the Apple Macintosh in Japan Canon also joined with Apple to develop software for the Japanese market Later in the S ! D S ! D decade, the companys optical chip efforts paid off when former Apple chief Steven Jobs chos e Canons chips for his new NeXT computer In 1989 Canon acquired a 16 7 percent interest in NeXT S ! D S ! D Incorporated, along with the exclusive right to market the NeXT in Asia, for US$100 million S ! D In the camera area, Canon dropped to the number two position wor ldwide in 1985 when Minolta introduced the popular Maxxum, whose automated features included autofocus By the end of the S ! D decade Canon was back on top after the 1987 launch of the EOS (electronic optical system) autofocus SLR followed in 1989 by the high-end EOS-1 autofocus SLR S ! D Cap Gemini Ernst & Young 1967: Sogeti is founded S!D 1973: Sogeti launches a hostile takeover of CAP S!D Serge Kampf received degrees in law and economics but turned his attention instead to the newly developing computer industry in the early 1960s Working as a salesman for French computerBiZdoM : Companies History Part 1 | S ! D systems manufacturer Bull, Kampf quickly made his mark, becoming director of the companys Grenoble region operations After Bull was sold to GE, however, Kampf left the company After a S ! D S ! D brief stint in the commercial export department of an industrial baker, Kampf decided to go into business on his own Despite a personal aversion to computers--he would admit to Time in 1991 that S ! D he had a holy aversion to them--Kampf recognized the growth potential of the computer industry S ! D Instead of turning to the hardware side, Kampf instead determined to make his mark on the nascent software side, reasoning the large and international corporations would inevitably turn to experts to help implement and manage their information technology needs S ! D Feedback at bizdomonline@gmail.com 121

With a handful of partners, Kampf founded the Société pour la gestion de lentreprise et letraitement de linformatique, or Sogeti, in 1967 The company joined a myriad of computer services S ! Dcompanies, most of which focused on the Paris market Yet Kampf stuck to his Grenoble roots, S ! Drecognizing that that region and other provincial markets remained largely underserved by the ITindustry S ! DSogeti met with almost immediate success, posting more than FFr 1 5 million in revenues by the end S ! Dof its first year, while building up a staff of some 20 employees The company was also already S ! Dprofitable--with net profits FFr 60,000 worth more than four percent of its sales Kampf also S ! Dweathered a management crisis in the companys first y ear, surviving a power struggle among thefounding partners to take majority control of Sogeti The companys policy of targeting its local S ! Dmarket paid off with a growing number of contracts with corporations and government bodies, asthese began to adopt computer technology for their management and data storage needs One such S ! Dlarge contract took Sogeti to Switzerland, where the company opened its first subsidiary operation in1968 By the end of 1969, Sogetis sales had topped FFr 4 2 million, and its payroll had swelled to S ! D S ! D49S ! DFrom the start, Kampf, who held 84 percent of the companys shares, led Sogeti on a program ofpartnerships and mergers with others in the industry An early partnership was set up with Gemini S ! DComputer Systems in 1969, giving the U S -based companys French operations a 20 percent share S ! D S ! Dof Sogeti Before that partnership was dissolved after only a year, Kampf also attempted to bring in S ! Da major player in the French IT industry, CAP However, CAP refused to join the then unknown S ! DKampf and his company S ! DSogetis growing treasury--the company refused to pay out dividends&mdash-abled it to turn itsattention to growth by acquisition In 1970, the company acquired rival Solame, and then a 52 S ! D BiZdoM : Companies History Part 1percent controlling interest in Sorgas Sogeti then joined in with a group of partner companies to S ! Dform Euroinfor Meanwhile, the company had also pursued a policy of maintaining close proximity S ! Dwith its growing list of customers, opening branch offices throughout France, beginning with Lyon in1969 By 1972, Sogeti had offices in more than 12 French cities, plus a growing network in S ! DSwitzerland through its Sogeti Suisse subsidiary The companys Parisian office opened in 1979 A S ! D S ! Dstrong factor in the companys growth was its policy of decentralized manag ement, giving themanager of each office a large degree of autonomy --and financial incentive--while guiding thecompanys overall strategy from its Grenoble headquarters S ! D@Team BiZdoM 122

BIZDOM : COMPANIES HISTORY PART 1 By 1973 companys sales had topped FFr 52 million Payroll had grown to nearly 650 That year, S ! D S ! D however, saw the company make a dramatic change in its position in the French IT market After S ! D gaining some 15 percent of CAP--the company that had snubbed him a few years earlier --Kampf led Sogeti on a hostile takeover of its larger rival, buil ding up a position, combined with Kampfs 15 percent, of 49 percent of CAP by the end of 1973 As CAP largest single shareholder, Sogeti placed S ! D pressure on its other shareholders to gain full control --which it did after a bitter battle in June 1974 S ! D The new company, dubbed Cap Sogeti, was quickly joined by another major acquisition, that of Gemini Computer Systems in September 1974 After merging the three companies, the new group S ! D took on a new name in January 1975, that of Cap Gemini Sogeti S ! D Growing into the 1980s The new group had become one of the French IT industrys largest, with sales topping FFr 226 million and nearly 2,000 employees The company continued its dual growth strategy of internal S ! D expansion--opening new branches across France and launching new foreign subsidiaries, offices, and partnerships in London in 1973, Washington, D C , in 1978, and Spain in 1979--and growth by S ! D S ! D acquisition through purchasing shares in such rivals as Bossard in 1976 and Sesa in 1982 By the S ! D end of 1982, Cap Gemini Sogeti had passed the FFr 1 billion mark S ! D If Cap Gemini Sogeti remained a largely European company --with its primary focus on its domestic market--it was beginning to nurture global ambitions At the beginning of the 1980s, the company S ! D began to make its first moves into the all-important United States IT market, making a number of acquisitions that were then regrouped as subsidiary Cap Gemini America in 1986 By then, the S ! D companys official language had already turned to English --marking its global ambitions The S ! D company had also gone public and was listed on the Paris Exchange in 1985, providing fuel for its future growth in the rapidly developing IT market of the 1980s S ! D By the end of the 1980s, Cap Gemini Sogeti had secured a position as the worlds fifth -largest IT services company The company had made particularly strong advances across Europe, makingBiZdoM : Companies History Part 1 | S ! D acquisitions in (West) Germany, Italy, Denmark, Sweden, and Finland to bolster its presence throughout the European Community The company also continued to add to its U S presence, S ! D S ! D S ! D including the acquisition of Merit Systems in 1989 By then, the addition of full control of Frances S ! D Sesa in 1987 had enabled the companys sales to leap to more than FFr 4 billion The company S ! D made a new jump in 1990 when it acquired the United Kingdoms Hoskyns Group Led by Geoff S ! D Unwin, the Hoskyns Group was one of the leading European IT services companies, and the IT leader in the United Kingdom That purchase, for $345 million, helped push Cap Gemini Sogetis annual S ! D revenues past the FFr 9 billion mark in 1990 Total payroll was now nearly 16,500 S ! D S ! D Feedback at bizdomonline@gmail.com 123

Cargill Inc S ! DCargill Inc is the largest private corporation in the United States Long known as a merchant of S ! D S ! Dcommodities, by the early 1990s Cargill had become one of the la rgest diversified services companiesin the country In addition to merchandising grains and oilseeds, Cargill operates as a transporter of S ! Dcommodities; a supplier of feed, seed, fertilizer, and other products to agricultural producers; aprocessor of food ingredients (such as corn syrup and flour) and of brand name products (such asmeat and poultry products); an industrial producer of steel, salt, and other products; and a financialand technical services provider Its diversified operations became increasingly important when the S ! Dtrade in commodities suffered a prolonged downturn beginning in 1980 S ! DCargills corporate philosophy, shaped by its participation in the grain trade, emphasizes secrecy andan intricate worldwide intelligence network Robert Bergland, former secretary of agriculture, told the S ! DMinneapolis Star and Tribune that "they probably have the best crop -marketing intelligence availableanywhere, and that includes the CIA " While secrecy provides an enormous operational advantage to S ! DCargill, it creates problems as well One frustrated journalist summarized Cargill as a "secretive, S ! Dinbred and suspicious" company Cargills low profile has created no reservoir of favorable public S ! Dopinion in difficult times After becoming president of Cargill in 1957, an exasperated Cargill S ! DMacMillan complained that the company only received public attention when it was involved in acourt case As late as 1977, a company survey revealed that while 94 percent of farmers had heard S ! Dof Cargill, only 49 percent knew what the company did S ! DWilliam Wallace Cargill began his career in the grain business in 1865 in Conover, Iowa The S ! Dbusiness grew as it followed the expansion of the railroad into northern Iowa after the Civil War In S ! D1875 William Cargill moved the headquarters of his company to La Crosse, Wisconsin He formed S ! Dseveral different partnerships with his brothers, Samuel and James With Samuel he formed W W S ! D S ! D S ! DCargill and Brother in 1867, which became the W W Cargill Company in 1892 James Cargill BiZdoM : Companies History Part 1 S ! D S ! D S ! Doperated in the Red River Valley in North Dakota and Minnesota with a partner, John D McMillan S ! D S ! DIn 1882 the partners sold their Red River Valley grain elevators to William Cargill in order to raisemore capital Then in 1888, James, William, and Sam Cargill formed Carg ill Brothers In 1890 this S ! D S ! Dfirm became the Cargill Elevator Company, headquartered in Minneapolis, Minnesota S ! DIn 1895 William W Cargills daughter married John Hugh MacMillan, and later his son William S S ! D S ! DCargill also married a MacMillan When the elder Cargill died in 1909, John Hugh MacMillan forced S ! Dout William S Cargill and took control of the company An ensuing feud simmered for decades, but S ! D S ! Dcontrol of the company now rests firmly in the hands of the MacMillan family, although some Cargillsstill hold stock S ! D@Team BiZdoM 124

Chiat/Day Inc Advertising S ! DChiat/Day was established when two competitors combined their talents to take on the biggeragencies in the Los Angeles area Jay Chiat & Associates, founded in 1962, had billings of $3 million S ! Dwhen Guy Day of Faust/Day Advertising, a $5 million agency, proposed a merger Chiat agreed with S ! DDay to pool their creative and financial resources, and, by October 1968, Chiat/Day was inoperation Day, after winning a coin toss, became company president S ! D S ! DFrom the beginning, the agency eschewed standard practices and created its own, unique brand ofadvertising Chiat/Day was among the first to use the English concept of "account planners," liaisons S ! Dbetween the agency and targeted consumers who travelled the country conducting individual andgroup interviews Account planners not only gauged audience response and understanding of ads, but S ! Dalso served as a crucial link between the client and the buying public A second Chiat/Day innovation S ! Dwas the requirement that clients actively participate in the creative process by attending an initialbrainstorming or strategy session, as well as a subsequent planning session Chiat/Day turned away S ! Dbusiness when clients refused this interaction Third, Chiat/Day believed all staff members should be S ! Dinvolved in a campaign via a "task force" approach But Chiat/Days greatest innovations were the ad S ! Dcampaigns themselves, work that demonstrated the agencys relentless pursuit of quality and itsunflagging ambition to unequivocally create the best ads in the industry S ! DAfter the two merging agencies combined their existing accounts and dropped any conflicts ofinterest, Chiat/Day was ready to take the advertising world by storm In 1969, the agency picked up S ! DWestern Harness Racing as client by betting its president they could raise attendance 15 percentwith their ads Another account included a public service ad, addressing racism, for the Los Angeles S ! DCounty Commission on Human Relations Chiat/Days "My Hero, the Pimp" ads of 1970 raised large S ! Damounts of money for Direction Sports, an organization involved in helping urban youth In short, S ! DChiat/Day pushed the publics buttons as it grew in both recognition and billings S ! DJay Chiats now classic maxim "Good enough is not enough" emerged as a definin g concept for the BiZdoM : Companies History Part 1company and a testament to Chiats vision of advertising With a pronounced ability to stir things up,S ! Daccording to Day and others, Chiat traditionally drove his creative teams to the "breaking point," thepoint where desperation often gave way to sudden inspiration The enormous dedication called for S ! Damong Chiat/Day employees engendered a corporate maxim perhaps just as popular and defining asChiats: "Chiat, Day and night " In 1971, the company hired Lee Clow, who would prove to best S ! Dembody the creative soul of the agency in the years to come While serving as the architect of many S ! Dof Chiat/Days most memorable campaigns, Clow rose through the ranks to become president andexecutive creative director worldwide According to Karen Stabiner in Inventing Desire, the rare S ! D@Team BiZdoM 126

BIZDOM : COMPANIES HISTORY PART 1 chemistry between Jay Chiat and Lee Clow, perhaps as much as anything, propelled Chiat/Day into the limelight S ! D In 1981, as Chiat/Day was hitting its stride and becoming one of the fastest growing privately -held agencies in the United States, Guy Day rejoined the company to help steer its course Also during this S ! D time, the foundation for what many consider the greatest ad in history was laid Chiat/Day was S ! D steadily garnering attention for Apple Computer, a client of the agenc ys San Francisco office, through a series of popular ads Then, in 1983, the agency began work on a TV spot introducing the S ! D Macintosh, a computer destined to revolutionize the industry, scheduled to air during the third quarter of the January 1984 Super Bowl Using an abandoned print ad, staffers worked around the S ! D slogan "Why 1984 wont be like 1984 " Apple liked the idea, and the British film director Ridley S ! D Scott was hired for the filming However, the disturbingly Orwellian commercial, featuring an athl etic- S ! D looking young woman (symbolizing Macintosh) hurling a sledgehammer at a Big Brother TV screen (IBM), proved too brash a statement even for Apples executives, and, before air -time on Super Bowl Sunday, a reluctant Apple tried to pull the plug, finally insisting that Chiat/Day sell the air time S ! D Fortunately, only half of the scheduled time could be sold, and the "1984" ad was run Chiat/Day S ! D held its collective breath and waited for the fallout S ! D Christian Dior S A S ! D S ! D 1941: Christian Dior becomes design assistant for Lucien Lélong S!D Christian Dior was born in 1905 As heir to a family fortune built on fertilizer and chemicals, Dior S ! D had little ambition to finish college, instead whiling away his 20s in Paris bars in the company of poets and artists Dior dabbled in art, and in 1928, launched a gallery financed with a large gift S ! D from his father But when heavy borrowing and the Great Depression combined to bankrupt the S ! D family business in the early 1930s, Diors family was forced to sell homes, furniture, jewelr y, and other heirlooms S ! D Dior moved in with a friend in Paris and decided to utilize his artistic talents in the fashion industry S ! D Beginning in the mid-1930s, he designed on a freelance basis, selling drawings of hats and gowns toBiZdoM : Companies History Part 1 | magazines and couture houses He snared a full-time position with Robert Piguets fashion design S ! D house in 1938, but was soon drafted into service for World War II Assigned to "farm duty"--helping S ! D farmers wives and other short-handed agriculturists tend their land--Dior was fortunate to be in unoccupied Provence when the German Army advanced in June 1940 and was subsequently discharged from the service He returned to Paris in 1941 and found work as a design assistant with S ! D the couture house of Lucien Lélong, designing custom -made dresses, suits, and ball gowns for some of the wealthiest women in the world S ! D Postwar Origins of the House of Dior Feedback at bizdomonline@gmail.com 127

In 1946, French fabric maven Marcel Boussac--then the nations wealthiest man--offered to backDiors launch of his own maison de couture Though the new house of fashion became part of a S ! Dvertically integrated textile business, it was initially a vanity property for Boussac, comparable to hisworld renowned stable of racehorses Christian Dior Ltd started out that year with 85 employees, S ! D S ! Dcapital of FFr 6 million, and "unlimited credit " In exchange for his creative genius, Dior negotiated a S ! Dgenerous salary; a significant, though not controlling, stake in the firm; legal status as its leader; andone-third of pretax profits It was quite an unusual arrangement, given Boussacs legendary--and S ! Deventually self-defeating--appetite for control The company was a majority-owned affiliate of S ! DBoussac Saint-Freres S A S ! D S ! DThe designer introduced his first and most famous line--dubbed the "New Look" by Carmel Snow ofHarpers Bazaar--in 1947 The collection was a striking refutation of the wars deprivation: whereas S ! Drationing restricted the amount of fabric used in a dress or skirt, Dior used an extravagant 20 yardsof only the finest fabrics in his long, wide skirts With help from elaborate undergarments, the S ! Ddresses emphasized the feminine figure, from the tiniest of waists to peplum - or tulle-enhanced hipsand tight-fitting bodices, often with deep décolletage S ! DThe line was an immediate and nearly complete success, garnering a clientele ranging from Europeanroyalty to Hollywood starlets and generating sales of FFr 12 7 million by 1949 Dior opened a New S ! D S ! DYork outlet before the year was out and established London operations in 1952 From the outset, S ! Dfully half of the companys sales were made in the United States By the end of 1953, the company S ! Dhad operations in Mexico, Canada, Cuba, and Italy Women who could not afford the haute couture S ! Dcopied it at home Soon enough--and to Diors chagrin--knock-off artists did the "dirty work" for S ! Dthem Eventually, the maison fought fire with fire, establishing a prêt à porter (ready to wear, S ! Dabbreviated in the trade as "rtw") line of somewhat less expensive versions of the couture line The S ! Ddesigner stayed with the "New Look" for seven years, becoming a virtual dictator of hem lines and BiZdoM : Companies History Part 1lengths in the process S ! DDiversification, Licensing Speed Growth in the Late 1940sAgain backed by the Boussac fortune, Dior launched Christian Dior Perfumes Ltd in 1948 The S ! D S ! Dnamesake owned one-fourth of the new venture, a childhood friend who managed Frances Cotyperfumery held another 35 percent, and patron Boussac owned the remaining stake By 1950, a S ! Dlicensing program devised by Dior General Manager Jacques Rouët put the now famou s name on@Team BiZdoM 128

BIZDOM : COMPANIES HISTORY PART 1 dozens of accessories, including ties, hosiery, furs, hats, gloves, handbags, jewelry, lingerie, and scarves While denounced by Diors colleagues in the French Chamber of Couture as a cheapening of S ! D the high-fashion industrys image, this licensing scheme would become a cornerstone of the companys long-term success and a trend that would only grow stronger in the decades to come S ! D By the mid-1950s, the Dior empire included eight companies and 16 affiliates, and employed 1,700 people on five continents In 1949 alone, Christian Dior fashions constituted 75 percent of Paris S ! D fashion exports, and 5 percent of all French export revenues Though Christian Dior launched several S ! D successful lines--including the "A," "Y," "Arrow," and "Magnet"--from 1954 to 1957, none would surpass the initial introduction of the "New Look" in impact By the time the house celebrated its S ! D tenth anniversary in 1957, it had sold 100,000 garments Though in his early 50s, Dior was by this S ! D time preparing for his retirement, having suffered two heart attacks A third seizure took his life that S ! D same year, ironically while he was on a recuperative trip to Italy Though his couture career spanned S ! D scarcely a decade, he had established himself as one of the modern eras best known fashi on designers Writing for Contemporary Fashion, Kevin Almond asserted that "By the time Dior died his S ! D name had become synonymous with taste and luxury " S ! D New Generations of Design Leadership After Diors Death in 1957 The founders death left the house in chaos Jacques Rouët considered shuttering the worldwide S ! D operations, but neither Diors licensees nor the French fashion industry --which owed 50 percent of its export volume to the House of Dior--would consider it Instead, Rouët--who would continue to guide S ! D the companys day-to-day operations into the 1980s--promoted 22-year-old Yves Saint Laurent, whom Dior had hired just two years previous, as lead designer Launched in 1958, the young S ! D designers trapeze line was successful, but his 1960 "bohemian" look met heavy criticism from the press, especially the influential fashion industry magazine Womens Wear Daily When Saint Laurent S ! D was drafted into the armed service that year (he went on to found his own house in 1962), he was succeeded by Marc Bohan, another protégé of Dior hired to head the London outlet shortly before the founders death Bohan would go on to serve Dior until 1989, far longer than the founder S ! D S ! D Contemporary Fashions Rebecca Arnold credited Bohan with keeping the House of Dior "at theBiZdoM : Companies History Part 1 | forefront of fashion while still producing wearable, elegant clothes," and Womens Wear Daily, not surprisingly, claimed that he "rescued the firm " S ! D Troubles at Diors parent company, Boussac, would visit drastic change on the maison de couture in the 1980s The roots of the problems reached back to the 1970s Still owned and led by its S ! D S ! D octogenarian founder (known as "King Cotton" in his home nation), Group Boussac had by this time grown to encompass 65 textile mills and 17,000 employees Despite its size, several imperatives of S ! D the maturing industry--consolidation, competition from imports, the shift to synthetics --had knocked Boussac from the top of Frances fabric heap to a struggling number five by 1971 Reluctant to close S ! D Feedback at bizdomonline@gmail.com 129

money-losing plants and lay off workers, King Cotton did little to prevent his textile operations fromsuffering heavy losses in the 1970s Money generated by his remaining one-third share of Dior S ! Dhelped to prop up the Boussac group for several years, and the parent company raised millions byselling its stake in Dior Perfumes In 1981, the government-owned Institute de Development S ! DIndustriel took control of the insolvent company, infusing FFr 1 billion (almost $200 million) in thecompany from 1982 to 1985 When Boussac finally went bankrupt, a group of investors led by S ! DBernard Arnault acquired it for "one symbolic franc" in December 1984 The 34-year-old Arnault S ! Ddivested the textile groups industrial operations, focusing on its Bon Marché department store andChristian DiorS ! DEvolution into a Luxury Powerhouse in the 1980sUnder Arnault, Dior became the cornerstone of one of the worlds largest and most importantfashion companies The new leader formed Christian Dior S A as a holding company for the fashion S ! D S ! D S ! Dhouse, then used the holding company as a vehicle to purchase a controlling stake in Moët HennessyLouis Vuitton (LVMH) in 1990 (His Au Bon Marché and Financière Agache companies were also S ! Dinvolved in the complex acquisitions ) Before long, Arnault had woven an intricate web of high -end S ! Dbrands, including the Christian Lacroix and Celine fashion houses; the Hubert de Givenchy fashionand fragrance operations; and the Dior fragrance business By 1991, when Arnault sold a minority S ! Dstake in Dior on the public market, LVMH had grown to become Frances top luxury goods group andits second largest publicly traded firm S ! DDubbed "king of luxury goods" by Time, Arnault took part in the supervision of Diors designdirection as well as its operations Though the couture division was by this time an unprofitable S ! Doperation, Arnault considered it a fundamental element of the Dior brand cachet In 1989, he hired S ! DItalian designer Gianfranco Ferré to succeed Marc Bohan as the maisons artistic director In keeping S ! D BiZdoM : Companies History Part 1with his standing as the first non-Frenchman to guide the house, Ferré broke from the romantic andflirtatious traditions set by Dior and Bohan, respectively, opting instead to continue in his own well -established vein with a collection described by Kevin Almond in Contemporary Fashion as "ref ined,sober and strict " S ! DChupa Chups S A S ! D S ! D1946: Company starts as Granja Asturias S A S!D S!D1954: Enrique Bernat joins company, begins development of the lollipop S!D1958: Bernat acquires full control of company, launches Chups brand lollipop S!D@Team BiZdoM 130

BIZDOM : COMPANIES HISTORY PART 1 1961: Lollipop name is changed to Chupa Chups S!D The predecessor company to Chupa Chups S A was founded in 1946 as Granja Asturias S A S ! D S ! D S ! D S ! D Originally specializing in apple-based sweets, the small Asturias-based company nearly folded in the early 1950s That was when Enrique Bernat--the grandson of a Barcelona candymaker--joined the S ! D company and set to work transforming the artisan operation into a production giant capable of manufacturing and distributing its products across the world By the late 1950s, Bernat had S ! D succeeding in turning the company around--and received 50 percent of the company for his efforts in 1958 Bernat decided to buy out the rest of the company, and then transform it entirely S ! D S ! D During the decade, Bernat had begun investigating a new product idea Recognizing the majority of S ! D Spains candies were being consumed by children, Bernat sought to create a product specifically for this market Most candies at the time were traditional sugar-based drops--which tended to produce a S ! D sticky mess in childrens hands Bernats idea was simple: he began inserting sticks into the candies -- S ! D originally a piece of metal&mdashø function as a handle, or, as Bernat himself said, like eating a sweet on a fork Bernat eventually named his candy the Chups, after the Spanish verb chup ar, or S ! D to lick S ! D The candy quickly became all the rage among Asturiass children, and its success encouraged Bernat to take a drastic step After gaining full control of the company, Bernat decided to eliminate the S ! D companys range of some 200 different candies to concentrate solely on its lollipop The first Chups S ! D were launched in 1958, available in seven flavors, and selling for one peseta apiece --considered expensive for the time S ! D Expensive or not, the Chups took off across the country Bernat had quickly industrialized the S ! D companys production, enabling the company to meet the rising demand for the lollipops Already by S ! D the end of the 1950s the company was delivering up to 200,000 lollipops per day, using its own fleet of trucks Meanwhile, the company continued to refine its sole product, replacing the metal S ! D sticks with wooden sticks, which were in turn replaced with plastic in the early 1960s An importantBiZdoM : Companies History Part 1 | S ! D refinement came in 1961, when the company changed the lollipops name to the more musical - sounding Chupa Chups, and it was under this name that the lollipop was to achieve international domination S ! D The success of the Chupa Chups brand led Bernat to change the companys name to that of its flagship line in 1964 Rising sales, and preparations to take the company international, encouraged S ! D Bernat to open a second factory, in Sant Esteve de Sesrovires, outside of Barcelona, in 1967 That S ! D factory helped support the companys launch of its first subsidiary, in Perpignan, France, in that same yearS ! D Feedback at bizdomonline@gmail.com 131

A major moment in the Chupa Chups brand history came in 1969 when the company adopted a newlogo For this, Bernat turned to friend--and world-renowned surrealist painter--Salvador Dali, who S ! Dquickly devised the companys daisy-shaped logo and bright colors The association of Dalis name S ! Dwith the still small Chupa Chups company gave it a great deal of international attention, enabling thecompany to penetrate new markets In that same year, the company built its first foreign production S ! Dfacility, in Bayonne, France The companys sales still remained predominantly Spanish, however; in S ! D1970, just ten percent of the companys lollipops were sold outside of Spain S ! DCisco Systems, Inc S ! D1984: Cisco Systems, Inc is founded by Leonard Bosack and Sandra Lerner S!D S!D1986: Company ships its first product, a router for the TCP/IP protocol suite S!D1988: Donald T Valentine, a venture capitalist, gains control of the company; John S!DMorgridge is named president and CEO S!D Cisco Systems was founded in December 1984 in Menlo Park, California, by a husband and wife team from Stanford University, Leonard Bosack and Sandra Lerner Bosack was the manager of the S ! D computer science departments laboratory, and Lerner oversaw the computers at the graduate school of business At Stanford, S ! D Bosack devised a way to connect the two BiZdoM : Companies History Part 1 local area networks in the respective departments where he and his wifeworked, 500 yards across campus S ! DLerner and Bosack initially tried to sell the internetworking technology that Bosack had developed toexisting computer companies, but none were interested They then decided to start their own S ! Dbusiness, Cisco Systems, based on this technology (they came up with the name, a shortened form ofSan Francisco, while driving across the Golden Gate Bridge) Bosack and Lerner were joined by S ! D@Team BiZdoM 132

BIZDOM : COMPANIES HISTORY PART 1 colleagues Greg Setz, Bill Westfield, and Kirk Lougheed, as cofounders Stanford University later tried S ! D to obtain $11 million in licensing fees from the new company, because Bosack had developed the technology while an employee at the university, but eventually the university settled for $150,000 and free routers and support servicesS ! D The company was established on a very tight budget In fact, Bosack and Lerner had to mortgage S ! D their house, run up credit card debts, and defer salaries to the ir friends who worked for them in order to get the venture off the ground, and, even after two years of business, Lerner maintained an outside salaried job to supplement the couples income S ! D Ciscos primary product from the beginning was the internetworki ng router, a hardware device incorporating software that automatically selects the most effective route for data to flow between networks Ciscos routers pioneered support for multiple protocols or data transmission standards, S ! D and could therefore link together different kinds of networks, those having different architectures and those built on different hardware, such as IBM-compatible personal computers, Apple Macintosh computers, UNIX workstations, and IBM mainframes Cisco thus became the first company to S ! D commercially provide a multi-protocol router when it shipped its first product in 1986, a router for the TCP/IP (Transmission Control Protocol/Internet Protocol) protocol suite A year later, Cisco was S ! D selling $250,000 worth of routers per month Sales for the fiscal year ending July 1987 were $1 5 S ! D S ! D million, and the company had only eight employees at the time S ! D 1993-94: First Wave of Acquisitions In September 1993, Cisco made its first acquisition For $95 million, it acquired Crescendo S ! D Communications, which had pioneered products for a new technology called Copper Distributed Data Interface (CDDI) Crescendos development of ATM technology was also a leading reason for the S ! D acquisition Crescendo Communications was renamed the Workgroup Business Unit, a nd its switching S ! D technologies under development were later incorporated into Ciscos routers Cisco made its secondBiZdoM : Companies History Part 1 | S ! D acquisition, that of Newport Systems Solutions for $93 million in stock, in August 1994 Newport S ! D Solutions sold the LAN2LAN product line, software used in linking local area networks S ! D Early in 1994, Cisco announced a new networking architecture, CiscoFusion, to provide clients with a gradual transition from routers to the new switched networking technologies of ATM and LAN switching CiscoFusion allowed users to take advantage of both routing and switching techniques As S ! D S ! D part of this architecture, several new switching products were introduced in March 1994, including the ATM Interface Processor and the Catalyst FDDI-to-Ethernet LAN switch The latter was the first S ! D new product of the Workgroup Businesses Unit since the acquisition of Crescendo S ! D Feedback at bizdomonline@gmail.com 133

During this time, Cisco moved its headquarters from one end of Silicon Valley to the other, fromMenlo Park to a newly constructed office building comp lex in San Jose, California The growing size S ! Dof the company had necessitated larger office space The companys workforce had grown from S ! D1,451 in July 1993 to 2,262 in July 1994, as Cisco hired talent from smaller, struggling networkingcompanies which were laying off personnel In fiscal 1994, Cisco topped $1 billion in sales, ending S ! Dthe year on July 31, 1994, with $1 24 billion in net sales, a 92 percent increase over the previous S ! Dyear, and $314 9 million in net income, 83 percent more than fiscal 1993 Later in 1994, in S ! D S ! DOctober, Cisco completed two more acquisitions of firms involved in the switching sector It spent S ! D$240 million for Kalpana, Inc , a maker of Ethernet switching products; and $120 million for S ! DLightStream Corp , which was involved in ATM switching and Ethernet switching and routing S ! D S ! DCitizen Watch Co , Ltd S ! D S ! DCitizen began in Tokyo in 1918 as a horological research center, the Shokosha Watch ResearchInstitute In 1924 the institute manufactured its first pocket watch Six years later, the group S ! D S ! Dorganized itself as a corporation, Citizen Watch Co , Ltd , to facilitate marketing of its products, S ! D S ! Dunder President Yosaburo Nakajima The new company owed its name to Tokyo mayor Shinpei S ! DGotoh, who named Shokoshas first timepieces Citizen watches, so that they would, in his words, be"close to the hearts of people everywhere " In addition to watches, Citizen produced precision S ! Dinstruments used in their manufacture In 1936 the company built the factory in the Tanashi area of S ! DTokyo that remains its main production facility S ! DAlso in 1936, Citizen began selling watches in southeast Asia and the South Pacific; China alsobecame a destination for exports The companys international horizons remained limited to other S ! DAsian countries until well after World War II In fact, Citizens export business dried up after the BiZdoM : Companies History Part 1 S ! Doutbreak of hostilities with the United States, as the Japanese economy geared itself to meet militaryneeds In 1941 the company began producing machine tools, a business it retained S ! D S ! DAfter Japans defeat by the Allied powers in 1945, Japanese industry lay in ruins, and Citizen, alongwith the rest of the nation, faced the task of rebuilding That year, Shinji Nakajima took over S ! Dcompany leadership as president In March 1946, less than a year later, Eiinchi Yamada assumed S ! Dthe post In 1949 Citizen established a subsidiary, Citizen Trading Co , Ltd , to handle domestic S ! D S ! D S ! Dmarketing This move allowed the parent company to focus on manufacturing, research, and S ! D@Team BiZdoM 134

BIZDOM : COMPANIES HISTORY PART 1 development In 1953 Citizen entered into a joint venture with Rhythm Watch Co , Ltd , another S ! D S ! D S ! D Japanese timepiece manufacturer, to sell the latters clocks S ! D The timepiece industry in postwar Japan was all but monopolized by four companies: K Hattori & S ! D Company, which produced the Seiko and Pulsar brands among others; Citizen; Ricoh; and Orient In S ! D 1965, Hattori and Citizen by themselves accounted for more than 80 percent of Japanese watch production Citizen also gained prominence in Japan for several technical advancements: developing S ! D Japans first shock-resistant watch in 1956; marketing the nations first wristwatch with an alarm in 1958; and in 1958 introducing the first Japanese water -resistant watch Citizen also made a S ! D significant public relations gesture in donating 850 synchronized clo cks for use in the Olympic Village at the 1964 Summer Olympics in Tokyo S ! D Citigroup Inc S ! D Key Dates: 1812: Colonel Samuel Osgood takes over the New York branch of First Bank of the United States and reorganizes it as City Bank of New York S!D 1865: The bank converts to a national charter, adopting the name National City Bank of New York (NCB) S!D 1897: NCB becomes the first major U S bank to open a foreign department S!D S!D S!D 1918: Foreign operations are enlarged through the purchase of International Banking Corporation S!D Citicorp had its origin in the First Bank of the United States, founded in 1791 Colonel Samuel S ! D Osgood, the nations first postmaster general and treasury commissioner, took over the New York branch of the failing First Bank and reorganized it as the Ci ty Bank of New York in 1812 Only two S ! D days after the bank received its charter, on June 16, 1812, war was declared with Britain The warBiZdoM : Companies History Part 1 | S ! D notwithstanding, the City Bank was for all intents and purposes a private treasury for a group of merchants It conducted most of its business as a credit union and as a dealer in cotton, sugar, S ! D metals, and coal, and later acted as a shipping agent S ! D Following the financial panic of 1837, the bank came under the control of Moses Taylor, a merchant and industrialist who essentially turned it into his own personal bank Nonetheless, under Taylor, City S ! D Bank established a comprehensive financial approach to business and adopted a strategy of maintaining a high proportion of liquid assets Elected president of the bank in 1856, Taylor S ! D converted the banks charter from a state one to a national one on July 17, 1865, at the close of the Feedback at bizdomonline@gmail.com 135

Civil War Taking the name National City Bank of New York (NCB), the bank was thereafter S ! Dpermitted to perform certain official duties on behalf of the U S Treasury; it distributed the new S ! D S ! Duniform national currency and served as an agent for government bond sales S ! DTaylor was the treasurer of the company that laid the first transatlantic cable, which madeinternational trade much more feasible It was at this early stage that NCB adopted the eight-letter S ! Dwire code address "Citibank " Taylor died in 1882 and was replaced as president by his son -in-law, S ! DPercy R Pyne Pyne died nine years later and was replaced by James Stillman S ! D S ! D S ! DStillman believed that big businesses deserved a big bank capable of providing numerous specialservices as a professional business partner After the panic of 1893, NCB, with assets of $29 7 S ! D S ! Dmillion, emerged as the largest bank in New York City, and the following year it becam e the largestbank in the United States It accomplished this mainly through conservative banking practices, S ! Demphasizing low-risk lending in well-secured projects The companys reputation for safety spread, S ! Dattracting business from the largest U S corporations The flood of new business permitted NCB to S ! D S ! D S ! Dexpand; in 1897 it purchased the Third National Bank of New York, bringing its assets to $113 8 S ! Dmillion That same year it also became the first big U S bank to open a foreign department S ! D S ! D S ! D S ! DFar from retiring or diminishing his influence within NCB, Stillman nonetheless began to prepareFrank A Vanderlip to take over senior management duties Stillman and Vanderlip, who was elected S ! D S ! Dpresident of the bank in 1909, introduced many innovations in banking, inclu ding travelers checksand investment services through a separate but affiliated subsidiary (federal laws prevented banksfrom engaging in direct investment, but made no provision for subsidiaries) S ! DExpansion in the Early 20th Century BiZdoM : Companies History Part 1Beginning in the late 1800s, many U S businessmen began to invest heavily in agricultural and S ! D S ! Dnatural-resource projects in the relatively underdeveloped nations of South and Central America But S ! Dgovernment regulations prevented federally chartered banks such as NCB from con ducting businessout of foreign branches Vanderlip worked long and hard to change the governments policy and S ! Deventually won in 1913, when Congress passed the Federal Reserve Act NCB established a branch S ! Doffice in Buenos Aires in 1914 and in 1915 gained an entire international banking network fromLondon to Singapore when it purchased a controlling interest in the International BankingCorporation, which it gained complete ownership of in 1918 S ! D@Team BiZdoM 136

BIZDOM : COMPANIES HISTORY PART 1 In 1919 Frank Vanderlip resigned in frustration over his ina bility to secure a controlling interest in the company, and James A Stillman, the son of the previous Stillman, became president NCB S ! D S ! D reached $1 billion in assets, the first U S bank to do so Charles E Mitchell, Stillmans successor in S ! D S ! D S ! D S ! D 1921, completed much of what Vanderlip had begun, creating the nations first full -service bank S ! D Until this time national banks catered almost exclusively to the needs of corporations and institutions, while savings banks handled the needs of individuals But competition from other banks, S ! D and even corporate clients themselves, forced commercial banks to look elsewhere for sources of growth Sensing an untapped wealth of business in personal banking, in 1921 NCB became the first S ! D major bank to offer interest on savings accounts, which it allowed individual customers to open with as little as a dollar In 1928 Citibank began to offer personal consumer loans S ! D S ! D Innovation in the Mid-20th Century The bank changed direction after the death of Gordon Rentschler in 1948 by moving m ore aggressively into corporate lending In 1955, with assets of $6 8 billion, NCB acquired the First S ! D S ! D National Bank of New York and changed its name to the First National City Bank of New York (FNCB), or Citibank for short S ! D Citibank used its bond portfolio to finance its expansion in corporate lending, selling off bonds to make new loans By 1957, however, the bank had just about depleted its bond reserve Prevented by S ! D S ! D New Deal legislation from expanding its business in private savings beyond New York City , Citibank had nowhere to turn for more funding The squeeze on funds only became more acute until 1961, S ! D when the bank introduced a new and ingenious product: the negotiable certificate of deposit S ! D The "CD," as it was called, gave large depositors higher returns on their savings in exchange for restricted liquidity, and was intended to win business from higher -interest government bonds and commercial paper The CD changed not only Citibank but the entire banking industry, which soon S ! DBiZdoM : Companies History Part 1 | followed suit in offering CDs The CD gave Citibank a way to expand its assets--but at the same time S ! D required it to streamline operations and manage risk more efficiently, because it had to pay a higher rate of interest to CD holders for the use of their funds S ! D The man behind the CD was not FNCBs president, George Moore, nor its chairman, James Rockefeller, but Walter B Wriston, a highly unconventional vice-president Wriston, a product of S ! D S ! D Wesleyan University and the Fletcher School, had worked his way up through the companys ranks since joining the bank in 1946 Having made a name for himself with the CD, Wriston was later S ! D given responsibility for revamping the companys management structure to eliminate the strains of Feedback at bizdomonline@gmail.com 137

Citibanks expansion Like Vanderlip more than 50 years before, Wriston advocated a general S ! Ddecentralization of power to permit top executives to concentrate on longer -term strategicconsiderations S ! DIn 1962 the banks official name was changed to First National City Bank Six years later, in an S ! Dattempt to circumvent federal regulations restricting a banks activities, Citibank created a one -bankholding company (a type of company the Bank Holding Company Act of 1956 had overlooked) toown the bank but also engage in lines of business the bank could not The holding company was S ! Dinitially called First National City Corporation (FNCC) Within six months, Bank of America, Chase S ! DManhattan, Manufacturers Hanover, Morgan Guaranty, and Chemical Bank had also created holdingcompanies S ! D1998: Citicorp + Travelers = Citigr oupIn 1998 Citicorp took the lead in mega-banking mergers by joining forces with Travelers Group Inc S ! DCitigroup Inc , as the new entity was called, boasted assets of $698 billion The merger created the S ! D S ! Dlargest financial services firm in the world, what the Economist called "a global financialsupermarket " With little overlap in service offerings and two separate distribution networks, the two S ! Dcompanies hoped to cross-sell to each others customers John Reed, chairman of Citicorp, and S ! DSanford Weill, chairman of Travelers Group, agreed to run the new company together S ! DThe rift between Citibank and Travelers Group became apparent in late 1998 when Jamie Dimon,likely successor to Citibanks joint chairmen, Weill and Reed, abruptly quit Employees divided along S ! Doriginal company lines, with Citibank staff cheering the news as a victory for their man Reed overWeill, who had groomed Dimon to replace him at Travelers Salomon employees, who had never S ! Dbeen fully integrated into Travelers Group before the merger , showed their sympathy for Dimon with BiZdoM : Companies History Part 1a standing ovation on their trading floor Dimons loss left a void in the companys leadership, S ! Despecially because Weill and Reed were both nearing retirement age S ! DIn 1999 Citibank announced a project to simplify it s service offerings in an effort to reduce costs As S ! Dthe bank had grown over the years, its complexity had multiplied to such mind -boggling dimensionsthat it needed 28 computer systems to handle its back-office records As an example, Citibank S ! Doffered 150,000 different kinds of checking accounts in 1999, with variations on how interest was@Team BiZdoM 138

BIZDOM : COMPANIES HISTORY PART 1 calculated, what fees were charged, and so on The goal of the new project was to cut complexity by S ! D 75 percent and eliminate at least 26 computer systems S ! D Meanwhile, the larger integration of Citicorp and Travelers resulted in restructuring charges of $1 3 S ! D billion and the elimination of more than 10,000 jobs from the workforce in 1998 and 1999 S ! D Continuing the branding of Citigroups units with the "Citi" prefix, Commerci al Credit, a consumer finance outfit that came from the Travelers side of the corporate tree, was rechristened CitiFinancial during 1999 Citibank Mortgage was similarly renamed CitiMortgage, Inc in April 2000 The S ! D S ! D S ! D corporations boardroom gained a big name in October 1999 when former Treasury Secretary Robert E Rubin was named co-chairman According to a Business Week article, Rubin, who had once been S ! D S ! D the CEO of Goldman Sachs, served as "a kind of roving corporate ambassador " S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 139

Colgate-Palmolive Company Key Dates: 1806: Company is founded by William Colgate in New York to make starch, soap, and candles S!D 1857: After founders death, company becomes known as Colgate & Company S!D 1873: Toothpaste is first marketed S!D 1896: Collapsible tubes for toothpaste are introduced S!D1898: B J Johnson Soap Company (later renamed Palmolive Company) introduces S!D S!DPalmolive soap S!DIn 1806, when the company was founded by 23-year-old William Colgate, itconcentrated exclusively on selling starch, soap, and candles from its New YorkCity-based factory and shop Upon entering his second year of business, S ! DColgate became partners with Francis Smith, and the company became Smithand Colgate, a name it kept until 1812 when Colgate purchased Smiths shareof the company and offered a partnership to his brother, Bowles Colgate Now S ! Dcalled William Colgate and Company, the firm expanded its manufacturingoperations to a Jersey City, New Jersey, factory in 1820; this factory producedColgates two major products, Windsor toilet soaps and Pe arl starch S ! DUpon its founders death in 1857, the firm changed its name to Colgate & Company and was run byPresident Samuel Colgate until his death 40 years later During his tenure several new products were S ! Ddeveloped, including perfumes, essences, and perfumed soap The manufacture of starch was S ! D BiZdoM : Companies History Part 1discontinued in 1866 after a fire destroyed the factory S ! DIn 1873 Colgate began selling toothpaste in a jar, followed 23 years later by the introduction ofColgate Ribbon Dental Cream, in the now familiar collaps ible tube By 1906 the company was also S ! Dproducing several varieties of laundry soap, toilet paper, and perfumes Colgate & Company shifted S ! Dits headquarters to Jersey City in 1910 S ! D@Team BiZdoM 140

BIZDOM : COMPANIES HISTORY PART 1 While the Colgate family managed its manufacturing operations on the East C oast, soap factories were also opened in 1864 by B J Johnson in Milwaukee, Wisconsin (under the name B J Johnson S ! D S ! D S ! D S ! D Soap Company), and in 1872 by the three Peet brothers in Kansas City, Kansas In 1898 Johnsons S ! D company introduced Palmolive soap, which soon became the best-selling soap in the world and led the firm to change its name to the Palmolive Company in 1916 The Peets, who sold laundry soap S ! D mainly in the Midwest and western states, merged their company (Peet Brothers) with Palmolive in 1926, forming Palmolive-Peet Company Two years later that firm joined with Colgate & Company to S ! D form Colgate-Palmolive-Peet Company, with headquarters in Jersey City Palmolive-Peets S ! D management initially assumed control of the combined organization S ! D On October 25, 1929, management signed an agreement to merge the company with Kraft Phenix Cheese Corporation (forerunner of Kraft Foods) and Hershey Chocolate Company The three S ! D companies would continue to operate independently, but they would become subsidiaries of a ho lding company slated to be called International Quality Products Corporation Just four days after the deal S ! D was signed, however, the stock market crashed, forcing the huge amalgamation to be scuttled In the S ! D wake of the crash, the Colgate family regained c ontrol of Colgate-Palmolive-Peet and installed Bayard Colgate as president in 1933 S ! D International Expansion Colgate & Company had been a pioneer in establishing international operations, creating a Canadian subsidiary in 1913 and one in France in 1920 In the early 1920s the firm expanded into Australia, S ! D the United Kingdom, Germany, and Mexico Colgate or its successor firm next created subsidiaries in S ! D the Philippines, Brazil, Argentina, and South Africa in the late 1920s In 1937 the company moved S ! D into India and by the end of the 1940s had operations in most of South America By 1939 Colgate- S ! D Palmolive-Peets sales hit $100 million S ! D In the 1940s and 1950s the company also built upon its strategy of growth by acquisition, buying up a number of smaller consumer product companies Organic growth remained on the agenda as well,BiZdoM : Companies History Part 1 | S ! D and in 1947 the company introduced two of its best-known products, Fab detergent and Ajax cleanserS ! D Commerzbank A G S ! D S ! D 1870: Commerz- und Discontobank is founded in Hamburg S!D 1892: Commerzbank opens a branch in Berlin S!D Feedback at bizdomonline@gmail.com 141

Commerzbank began in 1870 in the port city of Hamburg under the name Commerz - undDiscontobank Founded by a group of bankers and Hanseatic merchants, its primary purpose was to S ! Dfinance foreign trade The years 1870-72 were boom years for German banking; during this time S ! Dmany commercial banks were founded to take advantage of the business opportunities afforded bythe recent unification of Germany and the prosperity that followed its victory in the Franco -PrussianWar Many of these banks were short-lived, springing into existence to profit from the speculative S ! Dfrenzy of the moment, but Commerzbank, along with Deutsche Bank and Dresdner Bank, survived tobecome one of the three largest banks in West Germany today S ! DDuring its early years, however, Commerzbank remained relatively small Although it became a major S ! Dshareholder in the London and Hanseatic Bank when that bank was founded in 1872, in order toobtain representation in the worlds financial capital, Commerzbank did not participate much in therapid expansion of German overseas banking during the 1880s and 1890s Its larger Berlin-based S ! Drivals took the lead in German ventures into South American and foreign European markets Despite S ! Dits specialization in foreign trade, Commerzbanks name also is notably absent from the list of majorparticipants in the Deutsche-Asiatische Bank, which was founded in Shanghai in 1889 and firmlyestablished German financial presence in the Far East S ! DCommerzbank took a step up in 1892, when it opened a branch office in Berlin Following the S ! Dpolitical centralization inherent in the establishment of the Second Reich, many German banks hadgravitated to Berlin, making it the nations financial capital All of Germanys major banks were S ! Dbased there, and Commerzbank completed its bid to join their ranks in 1904 when it acquiredBerliner Bank Its Berlin operations quickly came to supercede those in Hamburg in importance At S ! D S ! Dthat time, German banking was dominated by nine Berlin -based institutions that became known asthe Berliner Grossbanken S ! D BiZdoM : Companies History Part 1Bank Mergers Between the Wars: 1918 -45The influence of the Grossbanken grew substantially during World War I and again in the yearsimmediately following the armistice, though for vastly different reasons From 1914 to 1918, public S ! Dborrowing to finance the war effort supplanted private-sector loans as the banks main source ofbusiness, and the government naturally chose firms with large capitalization to supply the sums ofmoney that it required This forced the banks to consolidate; large institutions absorbed smaller ones S ! Dand smaller banks reached "community of interest" agreements with each other S ! D@Team BiZdoM 142

BIZDOM : COMPANIES HISTORY PART 1 The inflation crises of the early 1920s, on the other hand, so threatened the German banking industry that the badly weakened banks were forced to merge with each other merely to survive In S ! D 1920, Commerz- und Discontobank merged with Mittledeutsche Privatbank of Magdeburg, which was then one of Germanys most important regional banks and had long been active in building up a branch network This new institution changed its name to Commerz- und Privatbank and, later that S ! D year, acquired Vereinsbank Wismar In 1924, Commerzbank had 246 branch offices, compared with S ! D only eight in 1913, a staggering rate of growth that well outpaced the other Grossbanken during this time S ! D Commerzbank enjoyed a period of relative prosperity in the latter half of the decade, increasing its capital from 42 million Reichsmarks in 1924 to 60 million in 1928, and its reserves from 21 milli on Reichsmarks to 35 6 million In 1929 it acquired another Berlin bank, Mittledeutsche Creditbank It S ! D S ! D S ! D also helped facilitate American investment in Germany during this time In 1927 it negotiated a loan S ! D of $20 million from Chase National Bank and re-lent the money to German firms Such moves were S ! D regarded with some suspicion, as they blurred the traditional line between banks and investment companies Commerzbank helped solve this public relations problem in 1928 by joining with Chase S ! D National to form General Mortgage and Credit Corporation for the sole purpose of increasing foreign investment in Germany S ! D Commerzbank changed its name to its current form, Commerzbank Aktiengesellschaft, in 1940 S ! D During the years of Nationalist Socialist rule, the Grossbanken , now numbering six, continued to dominate German banking In 1944, their assets totaled more than 28 billion marks, more than all S ! D of Germanys other banks combined Not only did they play a substantial role in financing the Nazi S ! D war effort, but thanks to Germanys universal banking system they were able to hold major interests in and place their executives on the boards of directors of the industrial concerns, like Krupp, Siemens, and IG Farben, that supplied hardware to the German military S ! D Reorganization and Global Expansion: 1945 -80 After World War II ended in Europe in April 1945, Allied occupation authorities began investigating the German banking industry as part of their effort to punish war criminals They found that not onlyBiZdoM : Companies History Part 1 | S ! D had the Grossbanken provided financial support to the ruling Nazis, but that they had helped plunder the assets of financial institutions in occupied countries and that companies under their control had employed slave labor Although Commerzbanks sins were not the most grievous to be S ! D discovered, the occupation authorities decreed that all of the Grossbanken would be broken up into a total of 30 smaller institutions The Allied authorities also hoped that decentralizing the German S ! D banking industry would limit its ability to finance future military buildups and that it would encourage U S -style competition As a U S diplomat told the Wall Street Journal in 1955, "It wasnt merely S ! D S ! D S ! D S ! D S ! D vengeance we sought We hoped that by modeling the German banking system after ours, where S ! D banks are usually confined to a single state, wed be able to do a service to the competitive system " S ! D Feedback at bizdomonline@gmail.com 143

The new West German government resisted this decree, but eventually gave in under severe politicalpressure In 1952, the surviving Grossbanken--Commerzbank, Deutsche Bank, and Dresdner Bank-- S ! Dwere each dissolved into three smaller banks Commerzbank was broken up into Commerzbank S ! DBankverein, Commerz- und Credit-Bank, and Commerz- und Disconto-Bank In addition, Chancellor S ! DKonrad Adenauer promised that the banks would not be re-amalgamated for at least three years S ! DCommerzbank had always been the smallest of the Big Three banks, but the very fact that it wasone of those select three counted for a great deal in the West German banking industry, where thedrop from the first tier to the second was steep Historically, Commerzbank was a latecomer, joining S ! Dthe major league of German banking long after its rivals had done so When the European economy S ! Dbecame fully integrated at the end of 1992, it presented West German financial institutions with awhole new set of challenges Commerzbank had to be quick to adapt to change this time S ! D S ! DCompaq Computer CorporationBeginnings: Making IBM ClonesWhen International Business Machines Corporation (IBM) introduced its first pe rsonal computer (PC)in 1982, Compaq was among dozens of other companies entering the market with IBM clones --computers that look and perform like IBM PCs, and are often less expensive Compaq set itself apart S ! Dfrom other clone manufacturers by becoming an innovator itself, producing IBM-compatible PCs thatwere faster, superior in quality, and offered additional user features Compaqs management team S ! Dalso set the company apart from others in the PC industry Made up of seasoned professionals from S ! DTexas Instruments (TI) and IBM, the teams prior experience in the volatile computer industry gaveCompaq the tools necessary to survive a period of phenomenal growth in 1983 Compaqs staff also S ! Dhad the technical and business grounding to establish new industry st andards on its own--withoutfollowing IBM BiZdoM : Companies History Part 1 S ! DCompaqs beginning was in the summer of 1981, when Joseph R "Rod" Canion, James M Harris, S ! D S ! Dand William H Murto, three senior managers from TI, decided to start their own company They had S ! D S ! Dnot yet determined what their company would produce and market; managing a Mexican restaurantor manufacturing storage devices for minicomputers or beeping devices for finding misplaced itemswere among their original ideas The entrepreneurs eventually decided to build a portable PC that S ! Dmet industry standards set by IBM With only $1,000 each to invest in their company, Canion, S ! DHarris, and Murto approached Ben Rosen, president of Sevin -Rosen Partners, a high-technology@Team BiZdoM 144

BIZDOM : COMPANIES HISTORY PART 1 venture capital firm in Houston Rosen, who became Compaqs chairman, offered an initial S ! D investment of $2 5 million S ! D S ! D A key factor in Compaqs growth was a strong cooperative relationship with its dealers With nearly S ! D 90 PCs on the market aimed at business professionals, shelf space was very competitive Compaq did S ! D not have a direct sales force of its own, and thus did not compete with its authorized dealers This S ! D arrangement gave dealers more incentive to carry Compaq computers Compaq also motivated its S ! D authorized dealers through what was called "Salespaq," wher eby Compaq paid a percentage of the dealers cost of advertising, sales training, or incentives S ! D Presario Leads a Consumer Push in the Mid-1990s Under the leadership of Eckhardt, Compaq also began a major push into the consumer and home office markets This effort was centered around the Presario line of home computers launched in S ! D August 1993 The companys hottest new PC in company history, the Presario line included models S ! D selling for less than $1,500; Compaq sold more than 100,000 Presarios in the first 60 days after introduction, with sales fueled by a $12 million television advertising blitz, the companys first such campaign in three years In 1993 alone, Compaq sold $500 million worth of Presarios By S ! D S ! D aggressively pricing its PCs, Compaq placed itself in a better position from which to compete with manufacturers of lower-cost PC equipment, manufacturers that had helped put the brakes on Compaqs previously unchecked growth By 1994 the company managed not only to fend off its low - S ! D price competitors, it also surpassed IBM as the number one seller of PCs worldwide S ! D ConAgra, Inc S ! D In 1919 Alva Kinney brought four grain milling companies in south central Nebraska together to take advantage of increasing grain production in the Midwest, and the Nebraska Conso lidated Mills Company was born Seventy years and a name change later, ConAgra, Inc is a diversified S ! D S ! D international company whose products range from agricultural supplies such as fertilizers, pesticides, and feeds to prepared gourmet dinners for a new age of consumers S ! DBiZdoM : Companies History Part 1 | Officially formed on September 29, 1919, the Nebraska Consolidated Mills Company (NCM) was headquartered in Grand Island, Nebraska At first Kinney concentrated on milling the bumper S ! D postwar wheat crops at his four Nebraska locations But soon, to accommodate his growing business, S ! D Kinney added a mill in Omaha, in 1922, and moved the headquarters of the company there He S ! D continued to run a profitable and relatively quiet company solely in Nebraska until he retired as president in 1936 S ! D Corbis Corporation Feedback at bizdomonline@gmail.com 145

1989: Microsoft founder Bill Gates forms Interactive Home Systems S!DCorbis began its business life with an objective significantly different from what its posture during thelate 1990s suggested The company was founded in 1989 as Interactive Home Systems, a company S ! Dpersonally funded by Microsoft founder and chairman, Bill Gates At its formation, Interactive Home S ! DSystems presented itself to the corporate world as an art -licensing company, an enterprise whosestrategy, not surprisingly, hinged on electronic technology, the realm of Gatess mastery Gates S ! Denvisioned a system that could deliver the great art works of human history into consumers homes,and he formed Interactive Home Systems as the company that eventually would beam the paintingsof famous artists via technology that had yet to be developed S ! DStrategic Change in 1994 Leads to Bettmann Archive Acquisition in 1995In 1994--the same year Gates acquired the Codex Leicester, Leonardo da Vincis notebook, for $30 8 S ! Dmillion--five fruitless years of waiting for a widespread technological revolution had proved sufficientto provoke a change in strategy S ! DThe name Corbis, Latin for woven basket, signaled the companys intention to develop into aformidable repository of digital content By October 1995, there was little doubt that the company S ! Dwas pursuing such an objective, its intentions made clear with the purchase of the Bettmann Archive S ! DAcquired from the Kraus Organization for a reported $25 million, the Bettmann Archive representedthe lifes work of Otto Bettmann, the son of a German -Jewish surgeon who began collecting discardedmedical illustrations from his fathers wastebasket at the age of 12 Bettmanns penchant for S ! Dgathering miscellanea was unleashed at the Berlin State Arts M useum, where he worked as a curatorof rare books Bettmann photographed everything he could get his hands on, snapping images of S ! Dphotographs, illustrations, lithographs, and old prints with his Leica camera In 1935, he left Nazi S ! DGermany, fleeing to the United States with two steamer trunks containing the core of all of the BiZdoM : Companies History Part 1material he had collected during the previous two decades Bettmann moved to New York City, S ! Dwhere he resumed collecting photographs and other images and turned his pastime into a busine ss S ! DFor a fee, material from Bettmanns ever-growing collection was available for one-time use, anopportunity that publishers, educators, scholars, advertising agencies, and movie and televisionstudios took advantage of, paying Bettmann licensing fees ra nging from $50 to $3,000 Bettmann S ! Dsold his archive in 1981 to a small publishing firm who continued to add to the collection asBettmann had done ceaselessly since 1915 S ! D@Team BiZdoM 146

BIZDOM : COMPANIES HISTORY PART 1 DAIKIN INDUSTRIES, LTD S ! D Daikin was founded in 1924 during a period of robust econo mic activity in Japan Although Japan S ! D had trailed the Western nations in the adoption of most modern technologies, by the 1920s its major industrial groups had taken shape and were able to provide secondary industries such as air conditioning with the raw materials they needed to get started In 1924, air conditioning was still a S ! D very young industry, the necessary refrigerants only recently having been developed in the United States Daikin, one of the earliest Japanese entrants in the new business, quickly established a solid S ! D customer base and the beginnings of an effective marketing group The 1927 financial crisis that S ! D shook all of Japan proved only a temporary obstacle to Daikins growth, but the ensuing Great Depression of 1929 caused economic hardship for the company The lean years of the early 1930s S ! D were ended by Japans intensive military buildup, which eventually provided every industrial concern with all the business it could handle Daikins sales soared as the general upturn translated into S ! D increased orders even for companies not directly involved in weapons production S ! D World War II ended with the nearly complete destruction of Japans industrial base Scanty records S ! D do not indicate the extent of Daikins losses, but, like most of the countrys c apital-intensive firms, it faced the massive job of retooling and rebuilding In addition, the Allied administrative command in S ! D Japan dissolved the great zaibatsu, or industrial conglomerates, which had organized and controlled most of the countrys economic activity Daikin, which had long been associated with the Sumitomo S ! D zaibatsu, thus not only had to rebuild its shattered assets but also adjust to a new economic order of decreased cooperation and interdependence On the other hand, the Japanese government quickly S ! D evolved a highly supportive economic policy of subsidies and planned growth, which helped Daikin and the rest of Japanese industry get back on its feet S ! D The postwar decades were an unqualified success for Daikin As in the United States, Japanese use S ! D of air conditioning and refrigerants in general soared in the 1950s The increasing construction of S ! D high-rise office and residential buildings encouraged the use of the large, centralized air conditioning units in which Daikin specialized A small but growing number of individual consumers also were S ! D beginning to demand air conditioning for the home Japans booming industrial economy, particularly S ! D the electronics firms, required Daikins heavy-duty air conditioners As the Japanese gained a S ! D reputation for excellence in electronics, the number of factories needing a temperature - and humidity-controlled environment grew rapidly, contributing to Daikins impressive domestic sales gains Finally, like so many other Japanese companies, Daikin began a tenta tive program of overseas S ! D expansion, originally restricted to its immediate neighbors along the Pacific Rim Its success there S ! D encouraged Daikin to enter the important European market in 1972, when it formed Daikin Europe N V in Belgium to serve as its European headquarters Daikin was the first Japanese maker of air S ! D S ! D S ! DBiZdoM : Companies History Part 1 | conditioners to establish a base in Europe and has remained the Japanese leader ever since S ! D In the meantime, Daikin had developed a number of ancillary businesses Its experience in the S ! D chemistry of coolants helped Daikin to build a highly successful chemical division specializing in the manufacture and sale of fluoropolymers, and of fluorocarbon gases, the basic ingredient in air conditioning coolants Similarly, from air conditioning Daikin found its way into the production of S ! D refrigerating units for use in factories, warehouses, and restaurants From its knowledge of coolant S ! D hydraulics, Daikin evolved a business specializing in the manufacture of pumps and valves used in oil hydraulics Daikin has played an increasing role as a supplier of explosives and related equipment to S ! D Japans Defense Ministry Daikin has used its increasingly diverse production mix to cushion the S ! D effect of cyclical depressions in the construction industry, with which it does the great majority of its Feedback at bizdomonline@gmail.com 147

business However, air conditioning and refrigeration provide the bulk of Daikins revenue and will S ! Dcontinue to do so for the foreseeable future S ! DDC Comics Inc S ! DProgenitors, 1934-37 --In 1934, Eastern Color Printing (ECP) began publishing news-strip comicsreproductions in Famous Funnies Imitators soon included King Comics and Popular Comics In 1935, S ! D S ! DMalcolm Wheeler-Nicholson published New Fun: The Big Comic Magazine #1, the first all -originalcomic book Wheeler-Nicholson founded National Allied Publications (NAP), attracting such talent as S ! DVin Sullivan and Whitney Ellsworth By 1938, Wheeler-Nicholson sold to Liebowitz/Donenfeld; S ! DEllsworth left; and only Sullivan remained at NAP S ! DSuperman Appears, 1938 --Donenfeld traveled, building distribution Liebowitz released 200,000 S ! Dcopies of Action Comics #1/1938, in which Sullivan published the first appearance of Siegel andShusters Superman and Fred Guardineers Zatara Created by two "kids" from Cleveland, Superman S ! Dsolidified the industry The comic, selling for a dime then, was worth six figures in the 1990s S ! D S ! DInitially created in 1932 for Science Fiction, a fanzine the two published, Superman coincided withHitlers rise to power and vow to create a race of Nietzschean "s upermen " The first Superman was S ! Da bald villain! The second was sans cape but a crime -fighter The "real" Superman came in 1934, S ! Dwith alter-ego Clark Kent named for Clark Gable Superman reappeared on the cover of 500,000 S ! Dcopies of Action Comics #7, and was selling a million copies by 1939 Siegel and Shuster opened a S ! Dstudio, and Superman got his own title, becoming a McClure -syndicated news-strip in 1939,appearing in 300 daily newspapers worldwide by 1941, and then appearing regularly until 1966 S ! DBatman Debuts, 1939 -- In May 1939, Bob Kanes Batman--created from such images as da Vincisflying machine, The Bat Whispers (1930), The Mark of Zorro (1921), and Dracula (1931) --debutedin "The Case of the Chemical Syndicate" (Detective Comics #27) Sullivan promptly bought the S ! Dcharacter, though left later that year to start his own company S ! DEveryone Else, 1939 --Liebowitz rehired Ellsworth and also hired Weisinger and Jack Schiff from thepulps But the comics flood was only beginning NAP accountant Victor Fox quit, opened offices, and S ! D S ! Dhired Will Eisner for Wonder Man (Wonder Comics, 1939) NAP sued and the title was canceled S ! D BiZdoM : Companies History Part 1after one issue Fox created The Blue Beetle later that year S ! D S ! DLiebowitz, with M(axwell) C(harles) Gaines, created All American Gaines, who, in 1933 at ECP, S ! Dhelped develop the first comic books, thought to sell them at newsstands, and also worked at TheMcClure Syndicate repackaging news-strips into comic books with Sheldon Mayer, the two whorecommended Superman to NAP in 1938 Mayer would also create Scribbly for All-American Comics S ! Dand hire Joe Kubert All American also featured Jon L Blummers Hop Harrigan and Bud Fishers S ! D S ! DMutt and Jeff S ! DThe Golden Age: 1939-50 ---By 1940, the distinctive DC circular logo (for Detective Comics) wasappearing on NAP and All American comics NAP created Superman Inc --a licensing company-- S ! D S ! D@Team BiZdoM 148

BIZDOM : COMPANIES HISTORY PART 1 turning out hundreds of merchandise items and promotions That year, Johnny Thunder and Gardner S ! D Fox creations The Flash and Hawkman debuted S ! D When Fawcett Publications debuted Captain Marvel (Whiz Comics), NAP promptly sued for similarities to Superman, fighting through 1953 before Fawcett settled, canceling Captain Marvel In S ! D 1973 NAP acquired the rights to Captain Marvel, resurrecting him in Shazam! S ! D In 1941, The Adventures of Superman radio program began Batman and Robin visited in 1945, S ! D beginning regular appearances, and the show ran until 1951 A seven-minute animated film-- S ! D Superman (1941)&mdash 〉 peared from Paramount Pictures The first of 17, this Academy Award- S ! D nominated film was suggested to producer Max Fleischer, whose studio had created Betty Boop and Popeye S ! D Meanwhile, Jack Kirby and Joe Simon created Captain America for Marvel and Jack Co les Plastic Man and Will Eisners Blackhawk debuted for Quality Comics Group, both characters which NAP acquired (1956) Weisinger created Johnny Quick, Aquaman, and Green Arrow, the three moving to S ! D Adventure Comics S ! D William Moulton Marston, best known for creating the lie detector, due to an article the psychologist wrote attacking comics, was approached by Mayer to write comics Marston agreed and Wonder S ! D Woman debuted in All Star Comics #8/1941, becoming lead character in Sensation Comics #1/1942 and graduating to Wonder Woman #1/1943 S ! D After Pearl Harbor, Weisinger enlisted; Bert Christman (Sandman) died with The Flying Tigers; Superman and Batman promoted war bonds; Simon and Kirby created Boy Commandos before ending up in uniform themselves; and before Siegel joined up, he and Hal Sherman created The Star - Spangled Kid, who debuted in Star Spangled Comics #1, a series which also featured Liberty Belle and Siegels Robotman S ! D In 1942, Superman villain The Prankster appeared; Random House published the fi rst Superman novel; Wildcat debuted (Sensation Comics); and Hop Harrigan appeared on a radio show which ran until 1948 S ! D Batman became McClure-syndicated in 1943 Wonder Woman and Hop Harrigan also had S ! D newspaper runs Superman villain The Toyman debuted Batman finally beat Superman to the punch, S ! D S ! D becoming the first NAP superhero with a live-action film Columbia Pictures released a 15-part serial S ! D entitled Batman S ! DBiZdoM : Companies History Part 1 | In 1944, DC hired Julius Schwartz--literary agent for H P Lovecraft&mdash story editor S ! D S ! D S ! D Concurrently, Liebowitz bought out Gainess share of All American, merging it with NAP Gaines went S ! D with his son Bill to create EC Comics--which would release Tales from the Crypt, Mad (1952), and Mad Magazine (1955; sold to Premier Industries, 1962) The Three Mousketeers also debuted that S ! D yearS ! D Superboy debuted in More Fun Comics #101/1945, graduated to Adventure Comics (1946), and got his own title (1949), the last of the important superhero titles of The Golden Age Superboy S ! D introduced Lana Lang, but created contradictions (Supe was not a superhero until adulthood, did not meet Lois until Metropolis) Siegel and Shuster did not like the character, suing NAP (1947) for S ! D Feedback at bizdomonline@gmail.com 149

royalties, which they received, but left the company, creating a rift until 1975, when the y wereawarded compensation, pensions, and credit again on their creations S ! DFrom 1946 to 1949, NAP published Real Fact Comics to promote education through comics (withPearl S Buck among the writers) That year, NAP, All American, and other DC predecessors S ! D S ! Dcombined to form National Comics Publications (NCP) S ! DMarston died in 1947; Kirby and Simon created a new Sandman; Mayer quit to return to drawing,and after World War II interest in superheroes began to slump NCP canceled More Fun Comics, S ! DFlash Comics, All-Flash Comics, and dropped costumed characters from All Star Comics, SensationComics, and Star Spangled Comics Action Comics, Detective Comics, and Adventure Comics S ! Dcontinued with Superman, Batman, and Superboy S ! DIn 1948, Superman debuted in film, appearing in Columbias 15-chapter serial Superman, producedby Sam Katzman, who also produced Batman and Robin (1949) and Atom Man vs Superman S ! D(1950) Other NCP characters appearing as Columbia serials included Hop Harrigan (1946), The S ! DVigilante (1947), and Congo Bill: King of the Jungle The impact of TV and film was felt in comics, S ! Das evinced by such titles as The Adventures of Ozzie and Harriet and The Adventures of Alan Ladd(1949); Feature Films and The Adventures of Bob Hope (1950); The Adventures of Dean Martin andJerry Lewis (1952-57); Jackie Gleason, (1956-58); Sgt Bilko, (1957-60); The Adventures of Jerry S ! DLewis (1957-71); The Many Loves of Dobie Gillis (1960-64); and Welcome Back, Kotter (1976) S ! DAttack on Comics, 1954In 1954, with a booming comics industry, Dr Fredric Wertham of Bellevue launched a Congressional S ! Dinquiry when he blamed comic books and their gruesome, lurid covers for growing juveniledelinquency, and asserted that Batman, Robin, and Wonder Woman were homosexual Though the S ! Dindustry created the self-governing Comics Code Authority, EC Comics was essentially destroyed, aswere other comics publishers S ! DThe Path of Kahn, 1976Jenette Kahn became publisher in 1976 and president five years later, and was credited with BiZdoM : Companies History Part 1revamping the entire company She changed the name NPP to DC Comics Inc in 1977, fashioned a S ! D S ! Dnew logo, and led DC to become the first comics company to pay royalties in 1981 S ! DChristopher Reeve took over in Superman: The Movie (1978), Superman II (1980), III (1983), andIV: The Quest for Peace (1988)--spinning off a Supergirl film (1984)--before moving to videocassette S ! DDHL Worldwide Network S A /N V S ! D S ! D S ! D S ! D@Team BiZdoM 150

BIZDOM : COMPANIES HISTORY PART 1 Key Dates: 1969: Adrian Dalsey, Larry Hillblom, and Robert Lynn form DHL, which quickly develops into an express delivery service between California and Hawaii S!D 1970s:Service to and from Far Eastern markets begins S!D Three Men and a Purpose: 1969-79 DHL was founded in 1969 by three young shipping executives, Adrian Dalsey, Larry Hillblom, and Robert Lynn, who were casting about for a way to increase turnaround speed for ships at ports They S ! D reasoned that if the shipping documents could be flown from port to port, they could be examined and processed before the ships arrived, and that speeding up the process would de crease port costs for shippers With this in mind, the trio combined the first letters of their last names to form the S ! D acronym DHL, thus beginning an air-courier company that revolutionized the delivery industry S ! D DHL rapidly developed into an express delivery service between California and Hawaii, then quickly expanded to points east The companys primary customer was the Bank of America, which needed a S ! D single company to carry its letters of credit and other documents DHL branched into the S ! D international market in the early 1970s when it began flying routes to the Far East In addition, while S ! D competitor Federal Express was developing its domestic overnight delivery network, DHL focused on further developing its international service S ! D In 1972 the three original investors recruited Po Chung, a Hong Kong entrepreneur, to help them build a global network Chung started DHLs sister company, DHL International Ltd , headquartered S ! D S ! D in Brussels, Belgium Beginning then, DHL Worldwide Express functioned as two separ ate companies, S ! D DHL Airways, Inc based in Redwood City, California, and DHL International While each company S ! D S ! D acted as the exclusive agent for the other, by 1983 DHL International had grown to be five times larger than its domestic counterpart DHL Internationals rapid expansion continued throughout the S ! D 1970s, adding destinations in Europe in 1974, the Middle East in 1976, Latin America in 1977, and Africa in 1978 S ! D FedEx and UPS Up the Ante: 1980-88 The 1980s would bring the firm increased growth as well as greater competition During this time S ! D DHL continued to expand, by turns cooperating with competitors and warring with them The S ! D company also sought new outlets for service, working out an arrangement with Hilton International Co in 1980, agreeing to provide daily pickup of documents at 49 Hilton Hotels, arranging for S ! D international delivery--its couriers moving the packages through customs --then delivering them locally S ! D It was a win-win situation as Hilton was able to offer its patrons a high -class delivery service andBiZdoM : Companies History Part 1 | DHL was guaranteed new outlets for its business The next year, 1981, DHL flew ten million S ! D shipments between 268 cities and had approximately $100 million in sales The following year, S ! D Lawrence Roberts, who had founded Telenet Communications Corp and headed GTE, joined DHL as S ! D president S ! D Late 1990s and Early 2000s: Gradual Beginning of the Deutsche Post Era A new era began for DHL in 1998 when Deutsche Post AG, the German postal service, then still wholly government owned, bought a 25 percent stake in DHL International--essentially buying the interest formerly held by Hillblom For DHL, the deal provided it with additional funds for expansion S ! D Feedback at bizdomonline@gmail.com 151

as well as greater access to the German market through Deutsche Posts 15,000 branches For its S ! Dpart, Deutsche Post was looking for opportunities to expand beyond its domestic market as theintegration of Europe continued apace Toward this same end, Deutsche Post Euro Express was set S ! Dup in 1998 as a ground-based parcel and distribution network for both Germany and Europe S ! DDaewoo GroupDaewoo Group was founded by Kim Woo Choong in March 1967 Daewoo means "Great S!DUniverse,"Beginning in 1962 the South Korean government instigated a series of five -year plans and forced thechaebols to aim for a number of basic objectives In common with their Far East competitors, Hong S ! DKong and Taiwan, South Koreas government relied on a strategy that focused attention on theimportance of exports as the method to decrease the countrys balance -of-trade gap and tostrengthen domestic production S ! DDaewoo began trading in 1967 at the start of the second five -year plan, and benefited fromgovernment-sponsored cheap loans on borrowing for exports The company chose to concentrate on S ! Dthe labor-intensive clothing and textile industries, which would provide relatively high profit marginswhile utilizing South Koreas major asset, its large workforce A factory was set up at Pusan and in S ! D1990 3 6 million shirts were made there each month Daewoo further contributed to the increases in S ! D S ! DSouth Koreas level of exports, which averaged 38 6 percent growth per annum during this period, by S ! Dproducing uncomplicated light manufacturing machines the construction of which, again, was laborintensive S ! DThe third and fourth phases of Koreas economic recovery ran from 1973 to 1981 The countrys S ! Dmost significant resource, labor, was then in high demand, and as wages increased, competitors fromMalaysia and Thailand began to erode Koreas comparative advantage in labor -intensive production S ! DThe government responded by concentrating on mechanical and electrical engineering, shipbuilding,petrochemicals, and construction This change in emphasis was designed to continue Koreas export - S ! Dled expansion and to provide domestic industries with parts tha t previously had to be imported A S ! Dhome-based defense industry was also a priority as plans were announced for the total withdrawal ofU S peacekeeping forces S ! D S ! D S ! D BiZdoM : Companies History Part 1Late 1980s Crisis in Daewoo ShipbuildingIn 1989 heavy losses suffered by Daewoo Shipbuilding and Heavy Machinery made servicing thecompanys loans increasingly difficult In an unprecedented demonstration against the traditional S ! Dwork ethic that had helped South Korea to economic prosperity, workers began an increasinglyviolent protest against years of long hours and low pay The only solution available to Daewoos S ! Dmanagement was to placate the workers with pay raises of more than 20 percent S ! DThe reliance on shipbuilding as a way of cementing South Koreas export -led recovery looked evenmore dangerous as the rapidly appreciating South Korean won made exports more expensive S ! D@Team BiZdoM 152

BIZDOM : COMPANIES HISTORY PART 1 Demand for Daewoos ships remained constant but the company was forced to sell ships at a loss as a way of guaranteeing a steady supply of orders The situation was exacerbated by the bankruptcy of S ! D US Lines in 1986 A bad debt of $570 million marked the start of the crisis at the Okpo shipyard S ! D S ! D Aggressive Overseas Expansion in the 1990s Daewoo entered the 1990s facing more problems than the downturn in the fortunes of its shipbuilding subsidiary The company was highly leveraged, partly due to the ready availability of S ! D government loans, and was paying interest of W 300 million a day --about $500,000--on its debts S ! D Daewoo had not marketed itself as well as competitors like Hyun dai and, as a consequence, suffered from the lack of a strong brand image Its heavy industries were now operating in stagnant markets S ! D and expenditure on research and development had to be increased if internationally competitive new products were to be successfully introduced Continuing workers demonstrations and changes in S ! D government policy further added to Daewoos worries S ! D The company also had to deal with the unraveling of its relationship with General Motors Sales of S ! D LeMans had fallen to 39,081 in 1990, a 39 percent drop from the peak of 1988 When GM and S ! D Daewoo could not agree on a plan to revive the venture, GM sold its half of Daewoo Motor to Daewoo in 1992 for $170 million As he had done in shipbuilding, Kim decided to take direct control S ! D of Daewoo Motor and quickly turned its fortunes around He focused the company on improving the S ! D quality of its cars; added to the production lines were detailed checks at every step along the way and, for a one-year period, every Espero and Prince car made was taken on a grueling road test to identify problems By 1993 Daewoo had regained the number two spot in the domestic car market, S ! D still trailing Hyundai but once again ahead of Kia, and by 1995 Daewoo Motor was making a slight profit S ! D DaimlerChrysler AG Key Dates: 1883: Carl Benz forms Benz & Companies in Mannheim S!D 1890: Daimler-Motoren-Gesellschaft is incorporated S!D 1924: Walter P Chrysler introduces the Chrysler Six model S!D S!D 1926: Daimler and Benz are merged to form Daimler-Benz AG, which begins producing cars under the name Mercedes-Benz S!D The roots of Daimler-Benz go back to the mid-1880s and two engineers, Carl Benz and Gottlieb Daimler, who are cited by most authorities as the most important contributors to the development of the internal combustion engine Despite the fact that they were both concerned with the same ideaBiZdoM : Companies History Part 1 | S ! D at virtually the same time, and they lived within 60 miles of each other, the two apparently never even met They certainly never envisioned the 1926 merger of their two companies S ! D S ! D Although Benz drove his first car in 1885 and Daimler ran his in 1886, neither was actually the first to create gasoline-powered vehicles They were, however, the first to persist long enough to make S ! D them viable as transportation At this time the obstacles to motorized vehicles were enormous: S ! D gasoline was considered dangerously explosive, roads were poor, and few people could afford an automobile in any case Nevertheless, Benz dedicated himself to revolutionizing the worlds S ! D transportation with the internal combustion engine S ! D Early in 1885 Benz--who had formed Benz & Companies in Mannheim in 1883 --sat in a car and circled a track next to his small factory, while his workers and his wife stood nearby The car had S ! D Feedback at bizdomonline@gmail.com 153

three wheels and a top speed of ten mph This engineering triumph was only slightly marred by S ! DBenzs first public demonstration, which took place shortly afterward, in which he forgot to steer thecar and smashed into the brick wall around his own home Despite this inauspicious debut, Benzs S ! Dcars quickly became known for their quality of materials and construction By 1888 Benz had 50 S ! Demployees building his three-wheeled car Two years later, he began making a four-wheeled vehicle S ! D S ! DDaimlers convictions about the internal combustion engine were a s intense as Benzs Originally a S ! Dgunsmith, Daimler later trained as an engineer, studying in Germany, England, Belgium, and France S ! DAfter working for a number of German and British firms, he became technical director for theGasmotorenfabrik Deutz Disillusioned by the companys limited vision, he and researcher Wilhelm S ! DMaybach resigned in 1882 to set up their own experimental engine workshop near Stuttgart They S ! Dtested their first engine on a wooden bicycle Later, they put engines into a four-wheeled vehicle and S ! Da boat Daimler sold the French rights to his engines to Panhard -Levassor (which later fought him for S ! Dthe use of his name) In 1896 he granted a patent license to the British Daimler company, which S ! Deventually became independent of the German Daimler-Motoren-Gesellschaft, which wasincorporated in 1890 S ! DThe story of how Daimler found a new brand name for its cars has become legendary In 1900 S ! DAustro-Hungarian Consul-General and businessman Emil Jellinek approached the company with asuggestion He offered to underwrite the production of a new high-performance car In return, he S ! D S ! Dasked that the vehicle be named after his daughter --Mercedes Daimlers Mercedes continued to S ! Dmake automotive history In 1906 the young engineer Ferdinand Porsche took the p lace of Daimlers S ! Doldest son, Paul, as chief engineer at the companys Austrian factory (Paul Daimler returned to the S ! Dmain plant in Stuttgart ) In the five years Porsche was with Daimler, he produced 65 designs, which S ! Dmade him one of the most influential and prolific automotive designers ever Approximately the same S ! Dtime, in 1909, the Mercedes star emblem was registered; it has embellished the radiators of all thecompanys cars since 1921 S ! DMuch of Daimler-Benzs growth in the 1950s occurred under the dir ection of stockholder FriedrichFlick A convicted war criminal, Flick lost 80 percent of his steel fortune at the end of World War II S ! D S ! DYet he still had enough money to purchase a little more than 37 percent interest in Daimler -Benzbetween 1954 and 1957 By 1959 his $20 million investment was worth $200 million, and he had S ! Dbecome Germanys second ranking industrialist Flicks holdings allowed him to push the company in S ! D1958 to buy 80 percent of competitor Auto Union GmbH and its Audi line, to gain a small er car for BiZdoM : Companies History Part 1the Daimler product line The acquisition made Daimler-Benz the fifth largest automobile S ! Dmanufacturer in the world and the largest outside the United States S ! DHistory of ChryslerThe story of the Chrysler Corporation began in 1920, when the com panys founder, Walter PercyChrysler, resigned his position as president of Buick and vice -president of General Motors (GM) overpolicy differences with GMs founder, William C Durant Chrysler was soon asked by a group of New S ! D S ! DYork bankers to restore the Maxwell Motor Corporation to solvency; in the process, he designed anew Maxwell model, the Chrysler Six First exhibited in 1924, the car was an immediate success, and S ! D@Team BiZdoM 154

BIZDOM : COMPANIES HISTORY PART 1 before years end the company sold 32,000 cars at a profit of more than $4 million In 1925 S ! D Chrysler renamed the company Chrysler Corporation S ! D The enthusiasm with which the Chrysler Six was met encouraged Walter Chrysler to design four additional models for the coming year: the 50, 60, 70, and Imperial 80 These model numbers S ! D referred to the maximum velocity that the cars could reach on a level stretch of road Until that S ! D time, Fords Model T had enjoyed the reputation of the fastest car, achieving a modest 35 mph S ! D Alarmed by Chryslers technological breakthrough, Ford closed its doors for nine months and emerged with a replacement for the Model T By 1927, however, the Chrysler Corporation had firmly S ! D established itself with a sale of 192,000 cars, becoming the fifth largest company in the industry S ! D The Creation and Early Years of DaimlerChrysler Daimler-Benz Chief Executive Jürgen Schrempp had concluded as early as 1996 that his companys automotive operations needed a partner to compete in the increasingly globalized marketplace S ! D Chryslers Eaton was drawing the same conclusion in 1997 ba sed on two factors emerging around the same time: the Asian economic crisis, which was cutting into demand, and worldwide excess auto manufacturing capacity, which was looming and would inevitably lead to industry consolidation With S ! D annual global overcapacity as high as 18 2 million vehicles predicted for the early 21st century, it S ! D became clearer that Daimler-Benz and Chrysler could survive as merely regional players if they continued to go it alone S ! D Deutsche Bank AG Key Dates: 1870: Deutsche Bank AG is founded in Berlin S!D 1873: A London branch is opened S!D 1876: Deutsche Union-Bank and Berliner Bankverein are acquired S!D 1914: Acquisition of Bergische-Märkische Bank increases the branch network from eight outlets to 46 S!D 1929: Deutsche Bank merges with Disconto-Gesellschaft to form Deutsche Bank und Disconto-Gesellschaft S!D 1933: The Nazis come to power in Germany, beginning the period of collaboration between Deutsche Bank and the Hitler regime; Jewish board members are ousted S!D 1937: The banks name is changed back to Deutsche Bank S!DBiZdoM : Companies History Part 1 | Deutsche Bank AG has weathered two world wars, three depressions, and a divided Germany to become one of the worlds leading financial institutions, entering the 21st century as the second largest bank in the world Its operations are divided into two customer-oriented business groups The S ! D S ! D Corporate and Investment Bank Group serves corporate and institutional clients, offering investment banking and corporate financing services on a worldwide basis The Private Clients and Asset S ! D Management Group focuses on retail banking, mostly in Germany, and the worldwide provision of asset management services for both individuals and institutions S ! D 19th-Century Origins Feedback at bizdomonline@gmail.com 155

Deutsche Bank was founded in Berlin on March 10, 1870, with the approval of the king of Prussia S ! DThe company opened its doors for business a month later under the directorship of Georg vonSiemens, with five million thalers in capital S ! DIn 1877 Deutsche Bank joined a syndicate of leading private banks popularly known as the P russianconsortium The bank was also employed by the government for the issue of state loans, and it grew S ! Drapidly in both influence and assets By 1899 it was able to offer to float, without help from other S ! Dfinancial institutions, a 125 million mark loan for Prussia and, at the same time, a 75 million markloan for the German Reich S ! DThroughout the 1880s and 1890s Deutsche Bank was a leader in electrical development It helped S ! Dto form finance and holding companies and issued bonded loans and shares for th e construction ofdynamos, power plants, electric railways, tramways, and municipal lighting systems By 1897, there S ! Dwere 750 power plants located across Germany The bank also invested in the Edison General S ! DElectric Company in the United States and began to build a power plant in Argentina S ! DDuring the same period, the bank was a driving force behind railway development In 1888, S ! DDeutsche Bank obtained a concession to build an east -west railway to open up Asiatic Turkey A S ! Ddecade later, 642 miles of the Anatolian railway were in operation in Turkey At the same time, in S ! Dthe United States the bank participated in the financial reorganization of Northern Pacific Railroad S ! DAll of this, of course, was done in addition to contributing significantly to the develo pment ofGermanys own extensive network of surface and underground railways S ! DConsolidation and Growth in Early 20th CenturyThe continuity of bank operations was uninterrupted when von Siemens died in October 1901 At S ! DDeutsche Bank, like most other German banks, all decisions are made by the board of directors, andthe board customarily takes credit for the companys successes The firm has no official chairman, S ! Dbut selects one board member to act as spokesman Thus the absence of von Siemens had little S ! Deffect on the bank, since management by consensus was the banks guiding principle S ! DThe Depression and Nazi Eras BiZdoM : Companies History Part 1In 1929, as financial chaos loomed, Deutsche Bank merged with its 20 -year rival, the Disconto-Gesellschaft The new entity was called Deutsche Bank und Disconto-Gesellschaft, a name that was S ! Dused until 1937 when it was changed back to simply Deutsche Bank At the time of their merger the S ! Dbanks were the two largest in Germany; combined, their capital, reserves, and deposits were each atleast twice as large as that of any competitor The merger, designed to cut administrative costs by S ! Dclosing competing operations, was very successful, and the resulting bank had enough capital andreserves to withstand the economic crisis Before the collapse, Deutsche Bank and Disconto- S ! DGesellschaft had handled about 50 percent of all business conducted by Berlin banks By 1931, the S ! Dbank was relying heavily on its undisclosed reserves and had twice reduced capital, but it remainedsolvent and required no government aid S ! D@Team BiZdoM 156

BIZDOM : COMPANIES HISTORY PART 1 During World War II, the government financed its budget deficit by printing new money, a misguided practice that quickly led to spiraling inflation The problem was artificially suppressed by S ! D questionable banking measures; more treasury paper began to appear among the banks assets S ! D Deutsche Banks enormous losses were made known only when Germany surrendered to the Allies in April 1945 S ! D Postwar Reorganization, Expansion into Retail Banking, and International Growth With the division of Germany into zones of occupation, and with Berlin in the Soviet zone, Deutsche Bank closed its head office there in 1945 The bank was run out of Hamburg It lost all of its S ! D S ! D branches in what eventually became East Germany (in 1949 they became the basis for the newl y formed Berliner Disconto Bank AG) In 1947-48, the western operations of Deutsche Bank were S ! D divided into ten separate regional institutions After lengthy negotiations with the occupying forces, S ! D these ten institutions were formed into three banks: Nordde utsche Bank AG, Rheinisch-Westfälische Bank AG, and Süddeutsche Bank AG served the northern, central, and southern areas of West Germany, respectively In 1957, these three banks were again reorganized, this time to form a single S ! D Deutsche Bank AG with corporate headquarters in Frankfurt At the time of its reunification, the S ! D bank employed more than 16,000 people and its assets totaled 8 4 billion marks Hermann J Abs, S ! D S ! D S ! D the strategist behind the reorganization of the bank and one of the key figures in West G ermanys financial recovery, became its spokesman S ! D In the 1960s Deutsche Bank concentrated on improving services for its smaller depositors The bank S ! D launched programs for personal loans of up to DM 2,000 and medium -sized loans up to DM 6,000 for specific purchases, as well as an overdraft facility of up to DM 1,000 for consumers Other S ! D services included personal mortgage loans, improvements in savings facilities, and the establishment of a eurocheque system By the end of the decade, the bank had become the largest provider of S ! D consumer credit in West Germany S ! D Under the direction of Abs, Deutsche Bank began to reestablish its international operations (it had lost all of its worldwide holdings after the war) It first reopened offices in Buenos Aires, Sao Paulo, S ! D and Rosario, Argentina, and then in Tokyo, Istanbul, Cairo, Beirut, and Teheran In 1968, Deutsche S ! D Bank joined the Netherlands Amsterdam-Rotterdam Bank, Britains Midland Bank, and Belgiums Societé Generale de Banque in founding the European-American Bank & Trust Company in New York In 1972 Deutsche Bank founded Eurasbank (European Asian Bank) with members of the same S ! D consortium S ! D When Hermann Abs retired in 1967, Karl Klusen and Franz Heinrich Ulrich took his place, becoming cospokesmen Abs had wielded such a great concentration of economic and financial power that aBiZdoM : Companies History Part 1 | S ! D special law limiting such influence was named after him -Lex Abs reduced the number of supervisory- board seats a single person could hold simultaneously in West Germany S ! D Deutsche Lufthansa AG Key Dates: 1926: Deutsche Luft Hansa is formed from consolidation of German aviation interests S!D 1934: Lufthansa launches airmail service to Buenos Aires S!D The history of Lufthansa (LH) parallels the development of aviation in Germany, dating back to a Feedback at bizdomonline@gmail.com 157

time when the first aviators were just beginning to fly However, LH was not established as a S ! Dcommercial airline in Germany until the 1920s S ! DAfter World War I, the German government favored the development of a national airline systemmade up of a number of associated regional airlines One of the largest airline companies, Deutscher S ! DAero Lloyd, was incorporated in 1923 and centered its operations on Berlins Temple Field The S ! Dfollowing year, Junkers Luftverkehr was founded Junkers built airplanes in addition to operating an S ! Dairline Together the two companies dominated German aviation S ! D S ! DThe two companies merged with all the other German aeronautic concerns in 1926 to formDeutsche Luft Hansa Aktiengesellschaft (the name "Hansa" was taken from t he north-GermanHanseatic trading league, which had contributed most of the airlines private capital) Luft Hansa S ! Dwas a government-run private monopoly--the chosen instrument for all German air services The S ! Dcompanys logo was taken from Aero Lloyd and its blue and yellow colors were taken from Junkers S ! DBy May 1926, Luft Hansa served 57 domestic and 15 international airports S ! DIntercontinental in the 1930sIn 1934, under the new name "Lufthansa," the company opened an airmail service between Stuttgartand Buenos Aires As an instrument of state commerce and diplomacy, Lufthansa flew to numerous S ! Ddestinations around the world, including Beijing, New York, Cairo, Bangkok, and Tokyo Regarded as S ! Dan instrument of the state, Lufthansa increasingly came under the control of the ruling Nazi Party S ! DLufthansa began service to destinations in the Soviet Union during 1940 These routes provided the S ! DGerman Luftwaffe ("air force") with valuable strategic information used in Hitlers surprise invasionof the Soviet Union two years later In 1941, the Luftwaffe assumed control of Lufthansas airplanes S ! Dand converted many of them for military use As the war continued, many Lufthansa employees were S ! Ddrafted into military service in support of the Luftwaffe, and many lost their lives S ! DAfter the war, Germany was occupied by the Soviet Union, the United States, France, and Britain S ! DThe Soviet-occupied zone later became the German Democratic Republic (East Germany), and theAmerican, French, and British zones became the Federal Re public of Germany (West Germany) A S ! Dgeneral state of belligerency between the Soviet Union and the western allies further divided Eastand West Germany Under the conditions of the occupation, both East and West Germany were S ! D BiZdoM : Companies History Part 1forbidden to establish their own airline companies British, French, and American airlines had a S ! Dmonopoly on air service in West Germany, while the Soviet airline Aeroflot assumed all air services inEast Germany S ! DLufthansa Reborn in the 1950sBy 1951, the reestablishment of a national airline for West Germany was proposed The following S ! Dyear, the West German government in Bonn set up a preparatory airline corporation, and on January6, 1953, Luftag (Aktiengesellschaft für Luftverkehrsbedarf) was created in Cologne Hans Bongers, S ! Dwho joined Lufthansa in 1926, was reinstated as director of the national airline Luftag began service S ! Dwith four Convair 340s, later joined by three DC-3s and four Lockheed Constellations S ! D@Team BiZdoM 158

BIZDOM : COMPANIES HISTORY PART 1 Luftags airplanes were piloted by foreign airline personnel while form er Lufthansa pilots were retrained in the United States The Germans later flew as copilots until 1956, when all -German S ! D crews were assigned In 1954, Luftag instituted its old name, Lufthansa (Deutsche Lufthansa S ! D Aktiengesellschaft), and in the following years reestablished its services to North and South America and the Middle East S ! D Jet-Powered Expansion in the 1960s Lufthansa began flying Boeing 707 passenger jets on its international routes in 1961 The S ! D introduction of jets marked the beginning of an eq uipment rotation at Lufthansa The older propeller- S ! D driven airplanes were slowly phased out and replaced by passenger jets With this new equipment, S ! D Lufthansa had firmly reestablished itself as one of the worlds premier air carriers S ! D The expansion of Lufthansa continued with the reintroduction of services to Africa The airline S ! D established service to Nigeria in 1962 and later that year began service to Johannesburg, South Africa Despite the heavy investment required for the airlines expansion, Lufthansa was able to S ! D declare its first profitable year in 1964 Previously the airline had charged its losses to the federal S ! D government S ! D Lufthansa joined a maintenance pool called ATLAS in 1969 As a member of ATLAS, Lufthansa S ! D cooperated with Air France, Alitalia, Sabena, and Iberia in the repair and maintenance of aircraft and other equipment Lufthansas Hamburg facility was designated to perform repairs for the pools B - S ! D 747s, DC-10s, and A-300s S ! D The updating of equipment at Lufthansa continued over the next few years as the airline introduced Boeings 737 for short distance shuttle routes, and a 747 jumbo jet for heavily traveled long -distance services In addition to the 747, Lufthansa purchased several McDonnell Douglas DC -10s The new S ! D S ! D aircraft replaced the older propeller-driven airplanes, the last of which was removed from the fleet in 1971 During this period, Lufthansa developed its air freight services with a fleet of 747s specially S ! D designated to haul cargo The airline constructed automated freight handling facilities in a number of S ! D destinations across the world Lufthansa recognized the importance of cargo services before most of S ! D its competition The company established one of the most modern freight handling systems in the S ! D world, and cargo services became a major source of revenue for Lufthansa S ! D Star Alliance Formed 1997 Another key goal of Webers was to seek out international partnerships, as alliances becameBiZdoM : Companies History Part 1 | increasingly common and vital for survival in the 1990s In October 1993, Lufthansa and United S ! D Airlines, the leading U S airliner, began a code-sharing arrangement whereby a single flight number S ! D S ! D in a reservation system could involve a journey consisting of a Lufthansa leg and a United leg This S ! D partnership eventually led to the May 1997 formation of the "Star Alliance," which initially involved Lufthansa, United, Air Canada, Scandinavian Airlines System (SAS), and Thai Airways International S ! D The Star Alliance included not only code-sharing but also reciprocal frequent flyer programs, reciprocal lounge access agreements, and scheduling and pricing coordination efforts In October S ! D 1997, the Brazilian airline Varig joined the alliance In 1997 and 1998, Lufthansa also entered into S ! D separate bilateral partnerships with Singapore Airlines and All Nippon Airways of Japan In May S ! D 1998, Air New Zealand and Ansett Australia agreed to join the Star Alliance during 1999 Regulators S ! D in Europe, however, were taking a close look at this and other alliances and were likely to require that changes be made before granting final regulatory approval S ! D Feedback at bizdomonline@gmail.com 159

Deutsche Post AGThe year 1490 is considered the founding year of the German post office, when German emperorMaximilian I ordered that a regular messenger service be established from Austria to theNetherlands, France and Rome, so that he would be able to efficiently reign from his Innsbruckheadquarters over his realm, including the new possessions he gained through marriage The first S ! Dpost line between Innsbruck and Mechelen in Belgium was established in the same year Maximilian I S ! Dassigned the organization of this network to the noble family of the Tassis (later spelled Taxis) fromBergano, North Italy, who had already experience in providing messenger services to various courts S ! DA relay system was established in which post riders traveled five miles between posts andcommunicated with each other by blowing a horn They rode without interruption to the next post at S ! Dan assigned location where they handed over the mail Thereby a letter could be delivered the 920 S ! Dkilometers from Brussels to Innsbruck in five days during the summer, and in six days during thewinter In the 15th and 16th centuries members of the von Taxis family settled in the main cities of S ! DEurope as their postal system was steadily enlarged S ! DIn exchange for running the postal service system, the von Taxis family was paid an annualreimbursement by the different royal courts However, due to weak state finances, wartime losses, S ! Dand the failure of noble families to settle their debts, the von Taxis were no t always paid properly,and they started looking for additional sources of income Although not technically allowed to deliver S ! Danything but "royal mail," the Taxis posts also delivered for private customers beginning at the latestin 1506 Financial difficulties were accompanied by tough competition from already existing S ! Dmessenger systems, primarily those between specific cities and the so -called "butcher posts " Since S ! Dbutchers often had to travel to buy livestock, they traditionally served as mail delivere rs and chargedtheir clientele by the piece When emperor Rudolf II made the messenger business an imperial S ! Dmonopoly in 1597 these conflicts were only partially resolved, since some of his local opponentsignored his edicts Beginning in June 1600, the general post master Leonard de Tassis was officially S ! Dpermitted to collect fees for mail delivery from private persons The head of the imperial post was S ! Dalways appointed by the emperor In 1615, however, Lamoral von Taxis persuaded German emperor S ! DMatthias to grant him the right to provide imperial postal service and to make it inheritable With S ! D BiZdoM : Companies History Part 1this security, the von Taxis family had an incentive to invest into the systems extension S ! DAs early as 1516 the postal system was used to transport people as well as to deliver information S ! DThe Taxis postal system initiated a postal ride system from Leipzig to Hamburg in 1660 andadditional routes were added soon after However, traveling with the postal coach was anything but S ! Dcomfortable and secure Like the horse riding posts, the postal coaches were used regularly to S ! Dtransport money and other valuables in addition to the mail and were often a target for highwaymen S ! DThe time it took to deliver mail did not change much between 1500 and 1765 However, innovations S ! Dsuch as the introduction of home mail delivery, drop-off mail boxes, and postal stamps improved theservice The first regulation regarding mail delivery personnel was enacted in Prussia in 1770 S ! D S ! D@Team BiZdoM 160

BIZDOM : COMPANIES HISTORY PART 1 Improvements in the postal infrastructure, such as improved roads , were often interrupted by wars and slowed down by disputes between the various regional governors until well into the 19th century S ! D Peak and End of the Taxis Post: 1806--67 At the peak of its success in the 18th century just before the French Revolutio n, the Kaiserliche Reichspost, run by the Thurn und Taxis family as it was then known, was the leading postal system in the Holy Roman Empire, serving 11 3 million people in an area of over 222,000 square kilometers S ! D S ! D Transit postal routes also connected the empire to France, England, Scandinavia, Poland, Russia, and to the court of the Turkish Sultan However, the Holy Roman Empire was dissolved as a result of S ! D Napoleons campaigns at the beginning of the 18th century When emperor Franz II renounced the S ! D crown of the Holy Roman Empire in 1806, the scene was set for a series of wars of liberation throughout Europe which made it increasingly difficult for the Thurn und Taxis postal system to survive S ! D The Southern German states, which had collaborated with Napo leon, dropped out of the Reichspost after the German Confederation of the Rhine was founded in 1806 In 1810, 43 different postal S ! D administrations were fighting for share of the territory of the former Reichspost This competition at S ! D times even took the form of "postal wars," such as occurred in the state of Baden Efforts to unify S ! D the German postal system at the Congress of Vienna, where the new European order was worked out after the defeat of Napoleon, failed A newly established confederation consisted of 39 independent S ! D German states, many of which had their own weights and measures, currencies, and tariffs By 1824, S ! D the Thurn und Taxis principality had reached almost 80 separate agreements and treaties with members of the new German states and other countries S ! D The two leading powers of the German confederation, Austria and Prussia, proposed the basic guidelines for a German postal association established in 1847 However, no agreement could be S ! D reached, and in 1850 the two states founded the German -Austrian Postverein, a postal association which other German states eventually joined Thurn und Taxis negotiated new agreements with S ! D Prussia and Austria in 1850 and 1851, and between 1851 and 1865, five postal congresses were held to update already existing agreements which developed into a sophisticated system of postal law After Austrias defeat by Prussia in 1866, the German confederation was dissolved and a S ! D number of formerly independent postal administrations were integrated into the Prussian system S ! D This marked the end of the almost 400-year-old Thurn und Taxis postal empire On January 28, S ! D 1867, an agreement was concluded in Berlin between the Thurn und Taxis principality and Prussia according to which Prince Maximilian Karl von Thurn und Taxis surrendere d all his postal rights and possessions to Prussia, making the Prussian post office the largest German postal system S ! DBiZdoM : Companies History Part 1 | Groundbreaking Technologies and World War I: 1868--1932 Although the history of the German post office was greatly influenced by the swe eping political change and man-made catastrophes of this period, it was most affected by the development of revolutionary new technologies that led to fundamental change in how messages were exchanged S ! D Worldwide mail delivery was greatly enhanced, for exam ple, by the introduction of steam ships In S ! D 1886 the first postal ship left for the German colonies in East Asia In 1870 it took mail from 25 to S ! D 30 days to travel from Western Europe to Shanghai, and about seven days to North America S ! D However, one of the most important inventions--the electric telegraph, first used in Germany around 1844 and introduced as a postal service in the following decade --made it possible to cut those times down to two days and two hours respectively Under the leadership of Heinrich Stephan, who became S ! D Feedback at bizdomonline@gmail.com 161

German Postmaster General in 1876, the new technologies were quickly utilized by the GermanReichspost Beginning in 1876, telegraph cable connections were set up between Berlin and 221 S ! DGerman cities, and by 1896 there were about 17,000 public telegraph offices in Germany At the S ! Dsame time, realizing the immense potential of the new medium of the telephone for the exchange ofmessages, Stephan pushed through ambitious plans to introduce telephone service on a large scale S ! DWith two Bell telephones which he had received as a personal gift, he began experiments in Berlinand contracted his acquaintance, entrepreneur Werner Siemens, to begin manufacturing Germantelephones as early as 1877 when as yet no public telephone network existed Three years later, S ! Dwhen only a single city in the United States over 15,000 inhabitants was without long -distancetelephone service, the first long-distance telephone center with eight users was opened in Berlin S ! DHowever, the Berlin business world was slow to embrace the novelty and in 1888 the network onlyhad about 9,100 participants In the same year Stephan managed to secure the monopoly for the S ! Destablishment and maintenance of telephone networks for the German Reichspost S ! DIn 1870 the German Reich was established, and the new postal administration, theReichspostverwaltung, began issuing postage stamps valid in all of Germany Under the Bismarcks S ! Dchancellorship, Prussian-dominated Germany underwent a period of fundamental political,technological, and social change which crucially affected the nations postal system Bismarcks S ! Dstruggle against the socialist movement by means of extremely restrictive legislation wasaccompanied by the establishment of a revolutionary system of social welfare which radica llyimproved the lot of the common people The Reichspost became the institution through which S ! Dwelfare payments were channeled and with the rising number of benefits such as disability insurance,pensions for the elderly, and later the benefits for survivi ng dependents, the postal system had toadapt to meet the new demand This service was offered free of charge until 1921 and was S ! Dperformed by the post office until the 1950s and 1960s, when cash -free transactions replaced thecash payments Despite protests by the banking lobby, in 1912 the Reichspost was also granted the S ! Dright to offer money deposit accounts and accompanying services By 1920, before postwar S ! Dhyperinflation hit the German economy, the number of the so -called postal check accounts exceeded620,000 with deposits of 4 7 billion German Marks S ! D S ! DBeginning in the middle of the 19th century, railway transportation had become more and morepopular and successively replaced horse carriers Mail could be sorted en route, and dropped off S ! Dwithout stopping, thereby cutting delivery times The second wave of innovation was brought about by S ! Dthe automobile In 1903 the German Reichspost used cars for the first time to deliver packages in BiZdoM : Companies History Part 1 S ! Dthe city of Cologne Bavaria, which maintained its political independence and its own postal S ! Dadministration, established the first cross-country motorized line for the transportation of mail andpeople in June 1905 By 1914 the Bavarian postal administration was running a total of 127 lines S ! Dwith 155 vehicles and 136 trailers In other German cities, battery-powered electric delivery vehicles S ! Dwere in service as early as 1911 The third invention which had a fundamental impact was the S ! Dairplane In 1912 the first German air mail was delivered in a demonstration show between S ! DDarmstadt and Frankfurt Beginning in 1912, zeppelins, huge gas-filled balloons operated by the S ! DDeutsche Luftschiffahrts Aktiengesellschaft (Delag), were used regularly for both mail and passengertransportation S ! D@Team BiZdoM 162

BIZDOM : COMPANIES HISTORY PART 1 World War I interrupted these developments: vehicles were needed for the war effort and gasoline supplies were limited Regular domestic air mail lines in Germany were opened again in 1919 S ! D S ! D International air mail delivery was difficult for the Reichspost after the war because the Treaty of Versailles banned it from using former military airplanes outside Germany However, since the S ! D Versailles Treaty also forbid Germany from building new airplanes, those planes were used to expand the domestic air mail system After those restrictions were lifted in 1926, international air mail took S ! D off In 1928, the German postal air mail system consisted of over 100 connections over a 33,000 - S ! D kilometer network The number of air mail letters, packages, and newspapers grew 16 -fold between S ! D 1919 and 1925, and had doubled again by 1933 Because early airplanes were not able to cross the S ! D Atlantic Ocean, mail was sorted on ships at sea and when they were close enough to the American continent, airplanes took off from the ships to speed the arrival of the mail S ! D After World War I, various transportation enterprises competed for shares of the postal market S ! D However, the position of the Reichspost was considered secure since its wide network insured that mail would be delivered even in difficult-to reach areas It further expanded its capacity by S ! D purchasing private transportation businesses An agreement was reached with its main competitor, S ! D the Reichsbahn, the German railways, which in general gave the Reichsbahn the right the long - distance traffic on highways, lines parallel to railways, and the railway replacement lines (schienenersatzverkehr), while the Reichspost was given the right to all additional cross -country traffic S ! D Another 1920s innovation for the Deutsche Reichspost was radio and television transmission The S ! D first public radio show was broadcast in Germany in 1923 and the first television transmission in 1928 While other institutions were soon given the right to produce content for the new media, the S ! D Reichspost established and maintained the technical infrastructure and provided the transmission services In 1920 the Postreklame--a business which offered advertising on postal vehicles, etc --was S ! D S ! D integrated into the Reichspost to increase its income S ! D The Reichspost Under the Nazi Regime: 1933--45 The German postal system was used intensively for propaganda of Hitlers nationalist ideology after he came to power in 1933, in particular through postage stamps and radio broadcasts The S ! D Deutsche Reichspost achieved a measure of independence under the Weimar Republic after it was taken out of the national budget but still required as a government -owned business to contribute significantly to the Weimar Republic The Nazi government, however, reintegrated it as a ministry in S ! D 1934 Wilhelm Ohnesorge became postal minister in February 1937 and was a supporter of the S ! D Nazi regime until 1945 The post office not only paid Adolf Hitler considerable amounts of money to S ! D use his picture on numerous postal stamps, it also carried out Nazi policies by introducing specialBiZdoM : Companies History Part 1 | hours when Jews were allowed to use postal services, cutting them off from services such as newspaper delivery and long-distance telephone service, and not hiring them as employees S ! D Ohnesorge illegally loaned money from the Reichspost budget to high Nazi officials and consta ntly monitored mail and phone messages, such as the long-distance telephone traffic between the United States and England, beginning in 1942 S ! D In the first half of World War II, while Germany was conquering new territory, the main challenge for the Reichspost was to get close to the battle fields and deal with the increasing amount of mail and freight being delivered to increasingly distant locations The amount of work done by the Reichspost S ! D grew by 50 percent between 1938 and 1943 At the same time, the number of Reichspost personnel S ! D lost to the army and war production rose steadily from about 50,000 in 1940 to 450,000 in the first Feedback at bizdomonline@gmail.com 163

half of 1945 Nonetheless, the number of post office employees, including those working part time, S ! Drose from 565,000 in 1940 to a high of 631,000 by July 1944 Over 6,000 postal drivers and S ! Dvehicles had to actively support the SS in 1943 Towards the end of the war when the German army S ! Dwas in retreat, more and more civil servants from the post office were required to support thedefense effort, and more and more services were cut back in the homeland Beginning in the second S ! Dhalf of 1944, when the "total war" was proclaimed, most of the postal services were no longeravailable, and a rising number of postal facilities and the nece ssary transportation infrastructure wasdestroyed as Allied troops entered Germany At the end of the war, the German postal system S ! Dcollapsed completely S ! DTwo German States and Cold Postal Wars: 1946--89After the Third Reich was defeated, the victors for med the Allierten Kontrollrat, consisting ofrepresentatives from the United States, Great Britain, France, and the Soviet Union, to govern thecountry This group ruled that the borders separating the four zones of occupation were equivalent S ! Dto postal zones The exchange of private messages was forbidden for several months, and all the S ! Dmail delivered later by the new Deutsche Post and all other forms of communication was censored S ! DThe June 1948 currency reform in the three Western German zones and the esta blishment of twoseparate German states in 1949 led to two separate German postal systems: the Deutsche Post inthe German Democratic Republic (East Germany--GDR) and the Deutsche Bundespost in the FederalRepublic of German (West Germany--FRG) S ! DThe Deutsche Post in East Germany had a monopoly of the delivery of messages in any form --radioand television broadcasts and the distribution of newspapers and magazines It was headed by a S ! Dministry and had a service agreement with the government -owned lottery founded in 1954 The mail S ! Ddistribution was neither mechanized nor very well maintained because investment funding waslacking Thus postal employees worked under ever more difficult conditions while their pay dropped S ! Dtoward the lower end of the scale The quality of service declined too as the scarcity of workers S ! Dbecame chronic Home delivery was abolished and mail was delivered to mailbox -complexes on S ! Dsidewalks in front of buildings while packages had to be picked up at the post office The reputation S ! Dof the Deutsche Post declined even more when otherwise unemployable people had to be hired, andcases of theft subsequently increased S ! D BiZdoM : Companies History Part 1Diebold, IncorporatedCharles Diebold first organized Diebold Bahmann in 1859, as a manufacturer of safes and vaults inCincinnati, Ohio In 1872 Diebold had outgrown its space in Cincinnati and transferred plant and S ! Dheadquarters to Canton, Ohio, where most of the post -fire orders were filled In 1874 Wells Fargo of S ! DSan Francisco chose Diebold to make what would be the worlds la rgest vault The following year, a S ! Dspecial 47-car train transported the 32-foot-long, 27-foot-wide, 12-foot-high vault to San Francisco S ! DIn 1876 the company was incorporated under Ohio law as Diebold Safe & Lock Co Following the S ! DWells Fargo feat, Diebold continued to traffic in the colossal, selling the largest -ever commercialbank vault to Detroit National Bank in 1921 In 1968 the First National Bank of Chicago purchased S ! Dthe largest-ever double vault doors, with a combined weight of 87 tons Size aside, the companys S ! D@Team BiZdoM 164

BIZDOM : COMPANIES HISTORY PART 1 abiding interest lay in developing equipment to stay one step ahead of bank robbers In 1890 the S ! D company introduced manganese steel doors that were billed as TNT -proof Through time, S ! D combination locks replaced keys, which could be copied Safety hinges were introduced along with S ! D locks that jammed automatically after banking hours S ! D The company made a splash in 1954 by putting visually pleasing vault doors on the market In the S ! D process of mechanically redesigning its bank vault equipment, the c ompany canvassed bankers for suggested improvements to the standard The overwhelming answer was that a plain slab of steel, S ! D particularly on the inside of the door--the side customers see--was an unworthy complement to a banks carefully decorated public spaces The company then hired Charles Deaton, a St Louis S ! D S ! D industrial designer, to retool both the interior and exterior of the vaults Despite the fact that the S ! D newly designed vaults cost around twice as much as the simpler models, they dominated new order s from customers S ! D Began to Diversify in the 1930s While better and more secure vaults and safes continued to be key features in Diebolds product line, the market for safes and vaults has not always been dependable, relying as it does on the health of the banking industry In the 1930s, Diebold began to diversify In slightly over a decade, S ! D S ! D the company made seven major moves toward expansion In 1936 the company acquired United S ! D Metal Products Co , also of Canton, a manufacturer of hollow metal doors and d oor frames In 1938 S ! D S ! D Diebold made its first entrance into the office equipment business by introducing the Cardineer Rotary File System This was followed in 1944 with the acquisition of the Visible Records Equipment S ! D Company of Chicago, a former subsidiary and a manufacturer of vertical filing systems and other record-keeping equipment That same year, Diebold bought the patents and manufacturing rights for S ! D Flofilm, a process that allowed companies to microfilm records in -house with a one-hour automatic developer In 1945, buying rights to the Safe-T-Stak Steel Storage File further augmented Diebolds S ! D growing office equipment business The following year, Diebold bought the safe and vault business of S ! D the York Safe & Lock Company Finally, in January 1947, the bank equipment division of O B S ! D S ! D S ! D McClintock Co of Minneapolis went over to Diebold The products acquired from McClintock S ! D S ! D included burglar alarms, a bank vault ventilator (in case of lock -ins), and after-hour depositories S ! D Amidst these acquisitions, in 1943 the company changed its name to Diebold, Incorporated to better reflect its diversified product line S ! D Several factors motivated Diebolds first expansion World War II brought the safe and vault S ! D business as a whole out of rough years with a flurry of g overnment armament contracts Following S ! D the dismal economy of the 1930s, the war created a demand for manufacturers accustomed to high - precision work with hardened steels For Diebold, as well as its main competitors York Safe andBiZdoM : Companies History Part 1 | S ! D Mosler Safe Co , the war effort spelled a windfall In 1942 Diebold, which had previously grossed S ! D S ! D around $3 million per year, brought in $40 million S ! D When the dust settled and the contracts disappeared with the end of the war, the company was fiscally sound but its executives were having trouble agreeing on Diebolds path of postwar reconversion Amid the confusion, Eliot Ness joined the companys board in 1944 A former S ! D S ! D prohibition agent (of The Untouchables fame) and Cleveland director of safety, he represented the Rex family, who owned the largest single block of Diebold shares (38 percent) Ness, who became S ! D chairman of the board, engineered a spectacular takeover of York Safe Located in York, S ! D Pennsylvania, York was the largest prewar producer of safes and vaults, with a strong sales base on the East Coast However, the company had let its sales division deteriorate during the war, while S ! D Feedback at bizdomonline@gmail.com 165

Diebolds was intact Seeing Yorks weakness, Diebold moved in The deal came together with the S ! D S ! Dhelp of Clint Murchison, Sr , a Texas oilman and a friend of future chairman Daniel Maggin S ! D S ! DMurchison arranged for several insurance companies to make loans to Diebold for the purchase andpersonally guaranteed them Diebold acquired all of Yorks patents, tools, service contracts, and S ! Dorders as well as its sales branches However, the York company had diversified to include plastics S ! Dproduction and microfilm equipment and Diebold left the remaining business freestanding under thename York Industries, Inc S ! DExpansion Continued in the 1950s and 1960sIn the 1950s, Diebold cashed in on Americas postwar migration to suburban areas, which created ademand for new bank branches and orders for safes as well as the full complement of office andsecurity equipment Thanks to its expansion during the 1940s, the company was able to meet the S ! Dnew demand for its products The automobile-oriented suburban life brought buyers for the S ! Dcompanys drive-in teller windows, which Diebold had started selling after the purchase ofMcClintock, along with the Diebold-McClintock burglar alarm and several models of after-hourdepositories In 1955 Diebold acquired K F Kline Co , a maker of steel lockers, shelving parts, S ! D S ! D S ! D S ! Dstorage bins, and storage and wardrobe cabinets The Kline acquisition, combined with Diebolds S ! Dprevious business in record-handling and storage equipment, brought business equipment to accountfor approximately 50 percent of total volume in 1957 S ! DIn August 1958, Diebold acquired the entire stock of Herring -Hall-Marvin Safe Co of Canada, Ltd , S ! D S ! Dwhich became The Diebold Company of Canada Limited In September 1959, Diebold acquired S ! DHerring-Hall-Marvin Safe Co of Hamilton, Ohio In addition to safes, Herring-Hall made teller S ! D S ! Dcounter equipment and the acquisition expanded Diebolds range of service to banks even fur ther S ! DThe U S government subsequently took the merger to court on antitrust grounds, saying that Diebold S ! D S ! Dand Herring-Hall were two of only three companies in the United States producing bank vaultequipment The Southern District Court of Ohio dismissed the case on the so-called "failing company S ! Ddoctrine," under which an acquisition in danger of antitrust challenges could be justified if it could beshown that the object of a takeover was in such poor shape that its continued existence would notsubstantially have altered the competitive environment In 1961 the Justice Department asked the S ! DSupreme Court to review the case, saying that the defense should be less broadly defined The high S ! Dcourt recommended that the district court that dismissed the case shou ld try it In April 1963, before S ! Da trial could take place, Diebold and the Justice Department reached an agreement Diebold would BiZdoM : Companies History Part 1 S ! Dsell the safe and vault part of the Herring-Hall-Marvin operation within the year and agree not tobuy any other vault or safe companies for another five years That limitation would be stretched to S ! D10 years if Herring-Hall was not sold within that time frame S ! DQuickly Became ATM Leader in 1970sIn the early 1970s, Diebold was faced with a slowdown in sales of security equipment The company, S ! Dled by longtime president and CEO Raymond Koontz, decided to respond by looking ahead andtaking a chance on ATMs Diebold invested heavily in electronic research, applied computer S ! Dtechnology, ergonomic design, and software development and, in 1973, introduced the first ATMmodel The ATM trade turned out to be a natural for the company that had been doing business with S ! D@Team BiZdoM 166

BIZDOM : COMPANIES HISTORY PART 1 banks for over a century While Diebold was a relative newcomer to this type of computer S ! D technology, its experience with cash-handling systems and security concerns made Diebold ATMs an attractive choice for banks Within five years, up against competing products from IBM, NCR, S ! D Burroughs, TRW, and Honeywell, Diebold had captured 45 percent of the domestic market In 1979 S ! D banks using Diebold ATMs included Bank of America, Citibank, Marine Midland, and the Shawmut CorpS ! D Through the early 1980s, the business press portrayed Diebolds ATM dominance over IBM and NCR as the pin-striped battle between David and a two-headed Goliath "Those three letters I-B-M are the S ! D first thing we think of when we awake," Forbes quoted Earl Wearstler, then Diebold executive vice - president, as saying in 1980 But Diebold held its ground, working out a reciprocal sales agreement S ! D with Bunker Ramo, a maker of microcomputer-driven teller terminals with strong sales in Europe and the United States To gain access to the Canadian ATM market, the company signed a sales and S ! D service agreement with Phillips, the international electronics company S ! D 1990s Saw Partnership Between Diebold and IBM and Several New Ventures In July 1990, Diebold, the company that professed to having nightmares about IBM a decade earlier, announced a joint venture with its erstwhile competitor, which was dubbed InterBold At the time, S ! D Diebold held a larger proportion of the domestic and world ATM markets than IBM, but the venture was designed to make the most of each parent companys expertise Diebold owned the majority S ! D share of the partnership, at 70 percent Through InterBold, Diebold benefited from IBMs strengths S ! D in software development and systems integration as well as from the companys strong position in Europe, Asia, and Latin America Within a year of the venture, InterBold introduced the i Series ATM, S ! D the first ATM model to use "image-lift" technology Image-lift allowed ATM users to see a picture of S ! D deposited checks on the ATM screen, and addressed customers fears about trusting deposits to the machines S ! D Dolby Laboratories Inc S ! D Dolby Laboratories Inc made "dolby" a household word when it developed the first commercially S ! D feasible noise-reduction device for magnetic tape Now providing noise-reduction products for film, S ! D fax, and the Internet as well as music, Dolby remains a private company owned by its founder and namesake The company is a leader in both analog and digital markets S ! D S ! D The inventor and owner behind Dolby, Ray Dolby, worked his way through high school and later Stanford University, at Ampex (a tape company) There, he was part of the six-member team thatBiZdoM : Companies History Part 1 | S ! D developed the first videotape recorder in 1957 He then attended Cambridge University in England, S ! D where he received a Ph D in physics before joining UNESCO in 1963 It was during his professional S ! D S ! D S ! D tenure at UNESCO that Dolby developed his namesake noise reduction process, visiting an ashram in India in 1964 While recording sitar music with a reel-to-reel Ampex tape recorder, Dolby was S ! D bothered by the hiss on his tapes, which drowned the subtleties of the Indian musical instruments S ! D After meditating on the problem, he invented electronic circuits that eliminate this hiss, and made his fortune on the product Further, he remained in complete control of his invention and his private S ! D company through the changing technological times to come While Dolby controls the patents and S ! D trademark for his product, he made the invention attractive by claiming very little in early royalties: sometimes only 7 cents per tape player S ! D Feedback at bizdomonline@gmail.com 167

Dolby was the first to create such a noise-reduction system for tape, although phonograph recordshad previously contained frequency adjustments that suppressed needle noise Creating a noise- S ! Dsuppression circuit for the high-frequency static (or hiss) on magnetic tape was a slightly differentprocedure With Dolby sound, circuits artificially boost the lou dness of the highest frequencies of S ! Dmusic while it is being recorded, and then the playback circuit reverses the process, shrinking high -frequency loudness back to its original levels The shrinkage process is what makes the tape hiss less S ! Daudible The process only takes place during quiet musical passages, for two reasons First, magnetic S ! D S ! Dtape is not capable of increasing the high frequency of loud music, since it is already at its limit S ! DSecond, the process is unnecessary in loud passages, as the ear is u nable to hear static over highvolume S ! DA capable inventor, Dolby proved to be a shrewd businessman as well In the 1960s, he faced S ! Dseveral problems in launching his sound-reduction device First, he had to persuade manufacturers of S ! Dtape players to use Dolby circuits before many music tapes were released in Dolby format However, S ! Dhe was seemingly caught in a Catch-22 situation, for there was no reason for music publishers torelease Dolby tapes before consumers owned Dolby players S ! DTo penetrate the market, Dolby enlisted professional recording studios first, and then pursuedmanufacturers of high-end consumer electronics Once these sectors were on board, Dolby was able S ! Dto convince mass market manufacturers that Dolby sound was a seemingly "high -end" product thatthey could integrate at low cost To ease the compatibility transition (allowing consumers to continue S ! Dplaying non-Dolby tapes), the new recorders were issued with switches that turned the noise -suppression circuit on and off When the mass market electronics makers began issuing Dolby S ! Dplayers, Dolbys first problem was solved: audio cassettes with Dolby sound quickly followed S ! DThe 1980s brought Dolby to Hollywood, with the beginning of film applications As the movie S ! DTommy, with its quadraphonic sound had shown, Dolby A could be incorporated into the opticalsoundtrack of film, improving the dynamic range and sound quality of that medium Dolby Spectral S ! DRecording (or SR), which was introduced in 1986, worked on magnetic sound tracks for film as wellas music cassettes, producing digital clarity from an analog sound system Dolby SR used the same S ! Dbasic principle as Dolbys original circuit, monitoring the sound signal and adjusting frequency boostto suit the loudness level, with different signal leve ls boosted at different amounts The result was a S ! Dsystem that was dynamic and almost infinitely flexible The system was used by many professional S ! Dstudios instead of digital recording, and in 1988 Dolby SR was in use at movie theaters showing the BiZdoM : Companies History Part 1films Robocop and Space S ! DDominos, Inc S ! DKey Dates:1960: Tom Monaghan and his brother Jim buy a pizza shop in Ypsilanti, Michigan, calledDomiNicks S!D1961: Jim Monaghan trades his half of the business for a Volkswagen Beetle S!D1965: After briefly partnering with Jim Gilmore, Tom Monaghan gains full control of thecompany, which is incorporated under the new name Dominos Pizza, Inc S!D@Team BiZdoM 168

BIZDOM : COMPANIES HISTORY PART 1 1967: The first Dominos Pizza franchise store opens in Ypsilanti S!D 1983: The first international store opens in Winnipeg, Canada S!D Monaghan was born in 1937 near Ann Arbor, Michigan Following his fathers death in 1941, S ! D Monaghan lived in a succession of foster homes, including a Catholic orphanage, for much of his childhood His mother, after finishing nursing school and buying a house, made two attempts to have S ! D Tom and his brother live at home with her, but she and Tom failed to get along During these years S ! D Monaghan worked a lot of jobs, many of them on farms His fathers aunt took him in during his S ! D senior year of high school, but after that he was once again on his own A quote from Monaghan in S ! D his high school yearbook read: "The harder I try to be good the worse I get; but I may do something sensational yet " S ! D For several years Monaghan worked to try to save money for college; he joined the Marines and saved $2,000, but gave it in several installments to a fly -by-night "oil man" he met hitchhiking, who took the money and ran Monaghan returned to Ann Arbor to live with his brother Jim, who worked S ! D for the Post Office and did occasional carpentry work at a pizza shop called DomiNicks When Jim S ! D Monaghan overheard the pizza shop owner discussing a possible sale, he mentioned buying it as a possibility to Tom With the aid of a $900 loan from the Post Office credit union, in December 1960 S ! D Jim and Tom Monaghan were in business in Ypsilanti, Michigan S ! D Within eight months, Jim Monaghan took a beat-up Volkswagen Beetle as a trade for his half of the partnership Tom moved in across the street from his shop The store Monaghan bought had little S ! D S ! D room for sit-down dining; from the start, delivery was key The first drivers, laid-off factory workers, S ! D agreed to work on commission After only $99 in sales the first week, profits climbed steadily to S ! D $750 a week Early on, Monaghan made decisions that streamlined work and greatly enhanced S ! D profits: on two separate occasions he dropped six-inch pizzas and submarine sandwiches from his menu when he was shorthanded at his shop, reasoning that he and his staff could handle the rush better without making special-sized pizzas or sandwiches in addition to regular pizzas When he S ! D went over the numbers the day after, both times Monaghan found that his volume and profits had increased Keeping the menu simple made financial sense S ! D S ! D Franchising in the 1970s The year 1973 was a turning point for Dominos The company introduced its first delivery S ! D guarantee, "a half hour or a half dollar off," as stated in the company newsletter the Pepperoni Press The College of Pizzarology was founded to train potential franc hisees The company S ! D S ! D decentralized as well: accounting was moved from Ypsilanti headquarters to local accountants, while the commissary was reorganized as a separate companyBiZdoM : Companies History Part 1 | S ! D Dominos introduced its corporate logo, a red domino flush against two blue recta ngles, in 1975 The S ! D company was sued the same year by Amstar Corporation, parent company of Domino Sugar, for the right to use the name After a five-year battle, Dominos won, but not until after more than 30 new S ! D stores were opened under the interim name Pizza Dispatch S ! D Free to expand, Dominos planned to grow by 50 percent each year By the late 1970s, several S ! D acquisitions contributed significantly to company growth Dominos merged with PizzaCo Inc , in S ! D S ! D 1978, gaining 23 open stores plus a handful more under lease The merger with this Boulder-based S ! D company allowed Dominos to move into Kansas, Arizona, and Nebraska The following year, joining S ! D with Dick Muellers Ohio Pizza Enterprises, Inc , Dominos added 50 stores in Ohio and Texas, for a S ! D Feedback at bizdomonline@gmail.com 169

total of 287 stores The company ended 1979 by announcing plans to expand internationally The S ! D S ! Dnew non-U S store subsequently opened in Winnipeg, Canada, in 1983 S ! D S ! D S ! DDow Jones & Company, Inc S ! DKey Dates:1882: Charles Henry Dow, Edward Jones, and Charles Bergstresser found Dow, Jones &Company S!D1885: Charles Henry Dow becomes a member of the New York Stock Exchange S!D1889: Charles Henry Dow and Edward Jones begin publishing the Wall Street Journal S!DThe popular reputation of Dow Jones & Company as one of the leading publishers of business news,information services, and community newspapers came nearly a generation after the foundingfathers, Charles Henry Dow and Edward Jones, arrived in New York City from Rhode Island in 1879,with a liking for journalism and an ear for financial gossip In their own day the two men were not S ! Despecially well known outside trade circles Dow had worked for a number of newspapers before S ! Dmoving to New York City, where he teamed up with Edward Jones and Charles Bergstresser to foundDow, Jones & Company in 1882 In 1885 Dow became a member of the New York Stock Exchange, S ! Dwhere he formulated what would be called the Dow theory of stock market movements He launched S ! Dthe Wall Street Journal in the summer of 1889 with Jones, a fellow journalis t Knowledge of the very S ! Dearliest years of the company is sketchy S ! DDow is said to have traded only infrequently on the exchange and to have taken his seat as a favorto a friend in immigration difficulties Yet Dows membership put him in a good position to observe S ! Dthe exchange and to overhear tips Dow apparently wrote most of the copy for the early issues of the S ! DJournal, working only part-time at the newspaper, while Edward Jones edited the news -bulletin serviceand acted as managing editor Reporters Thomas Woodlock and Charles M Bergstresser covered S ! D S ! DWall Street Many of Dows early articles were editorials, and information gleaned by Jones in the S ! Dhotel bars formed the core of the news service S ! DDow and Jones joined in a news-exchange agreement with Clarence Barron, the proprietor of theBoston News Bureau Barron had begun to publish a financial newspaper in Boston two years before S ! Dthe Wall Street Journal was founded, and the two offices, the Journals in New York and Barrons in BiZdoM : Companies History Part 1Boston, reinforced one anothers coverage, with the aggressive Barron expanding into Philadelphiawith his Financial Journal in 1896 S ! DEdward Jones left the Wall Street Journal in January 1899 The family relationship between Dow and S ! Dhis cousin by marriage, Charles Bergstresser, who was also a partner in the firm, might haveprecipitated Joness departure Jones continued to live a good life on Wall Street, and his eulogy of S ! DDow three years later was respectful and even loving, calling his former partner a "tower of strength"and one of "the most honest exponents" of financial journalism S ! DIn 1900 the stockholders of Dow Jones, members of the Dow and Bergstresser families, and a fewcompany employees received $7,500 each in addition to $1 20 a share in annual dividends In S ! D S ! D@Team BiZdoM 170

BIZDOM : COMPANIES HISTORY PART 1 March 1902 Clarence Barron purchased Dow, Jones & Company --including the news agencies in Boston and New York and the Wall Street Journal--for $130,000 Dow and Bergstresser resigned S ! D their directorships There was no public announcement, only the appearance of na mes for the first S ! D time on the Journals masthead Although Barron had bought the company, he listed Dow, S ! D Bergstresser, Woodlock, and J W Barney, not himself In December of the same year, Charles Dow S ! D S ! D S ! D died of a heart attack at age 51 in his Brooklyn home S ! D In 1905 Charles Otis was elected president, and F A Russell was named to the board of directors S ! D S ! D S ! D Both Jessie Barron, Barrons wife, and Sereno Pratt were reelected directors of the company, and John Lane and Hugh Bancroft were added to the board S ! D Bancroft and the Barrons daughter, Jane, married in 1907, and when Clarence Barron became ill, his son-in-law assumed increasing responsibilities in the New York offices By 1911 the elder Barrons S ! D health had improved, but newspaper circulation, advertising, an d profits were down, which precipitated a bitter quarrel between Barron and Charles Otis Barron also fought with Bancroft and S ! D soon drove out President Otis and Director Sereno Pratt On March 12, 1912, he reinstated himself S ! D in their places S ! D When Clarence Barron stormed into the editorial office of the Journal in March 1912 following his election to the presidency, the staff was terrified Although lore has it that Barron harassed some S ! D employees into quitting, he is said never to have fired anyone According to his contemporaries, S ! D Barron was a flamboyant and eccentric figure whose genius for journalism, along with his tough - mindedness, drove the ensuing prosperity of the publication S ! D The Great Depression and the Wartime Years In 1921 Barron hired Kenneth Craven (Casey) Hogate, a second generation newspaperman Later in S ! D 1921 Clarence Barron died, leaving an estate of $1 5 million to his daughter Jane Bancroft, who in S ! D 1918, at her mothers death, had inherited the majority shares Hugh Bancroft was elected president S ! D and Casey Hogate, vice-president Bancroft and Hogate managed a steadily prospering company until S ! D the stock market crash of 1929, when the paper began to sustain severe losses in circulation and advertising S ! D By 1932 the company had dropped the comma in its name Despite the Great Depression, on June S ! D 27, 1932, Dow Jones & Company published an 80-page edition of the paper celebrating its 50th anniversary and its new building on Broad Street Although Hugh Bancrofts name continued to be S ! D listed as president, Casey Hogate was chiefly responsible for running the company in the DepressionBiZdoM : Companies History Part 1 | era, as Bancrofts health deteriorated S ! D Developments in the 1950s, 1960s, and 1970s On December 21, 1949, Jane Bancroft, the last of the original Barron family, died in Boston S ! D Throughout her life Jane Bancroft had been involved deeply in the growth of the paper, and her last acts had been to create an employee profit-sharing pension plan and to approve the postwar reorganization of Dow Jones S ! D Bancrofts daughter, Jane Cook, assumed her mothers place on the board, and before the end of 1949 Treasurer William Kerby drafted the new Dow Jones management chart, with Kilgore as president and chief executive officer At this time the company portfolio included the Dow Jones S ! D Feedback at bizdomonline@gmail.com 171

News Service (in the United States and Canada); a commodity news service; the Journal, witheditions in New York, Dallas, and San Francisco; and Barrons, a weekly periodical that continued tostruggle with lagging circulation until 1955, when editor Robe rt Bleiberg turned the situation around S ! DIn the 1950s the Journals layout was modernized, using more two -column heads and readersletters, cartoons, and drawings In 1953 new equipment was used to set stock and bond quotations, S ! Dwhich made it possible eventually to publish simultaneous editions of the newspaper, with identicalnews content and typographical quality, anywhere in the United States S ! DDr Reddys Laboratories Ltd S ! D S ! DKey Dates:1984: Dr Anji Reddy founds Dr Reddys Laboratories, based on a bulk actives business he S!D S!Dhad founded in the 1970s, in order to extend into the production of drug formulations S!D1986: Dr Reddys goes public on the Bombay stock exchange S!D S!DIn 1970, the Indian government, then led by Indira Ghandi, abrogated laws respectin g internationalpharmaceutical patents The move, meant to reduce the cost of providing healthcare to Indias large S ! Dand exceedingly poor population, had the effect of supercharging the countrys pharmaceuticalsector With a long history in process chemistry, and a large and highly educated pool of scientists, S ! Dthe sector quickly became experts at reverse-engineering, and then copying, the drugs developed bythe worlds large multinationals S ! DThe new industry quickly became one of the worlds most energetic markets--by the 1990s, therewere more than 20,000 companies operating in Indias pharmaceuticals industry Indian producers S ! Dwere able to produce drugs and their components for a fraction of the cost of their Westerncounterparts, and quickly found an enormous demand throughout the developing world Yet the S ! Dhighly competitive domestic market, as well as the slender margins available from the copied --manywould call them pirated--drugs forced the Indian companies to develop highly cost -effectivemanufacturing and marketing models S ! DDr Anji Reddy, the son of a well-to-do turmeric farmer in Andra Pradesh in the south of India, was S ! Done of the early entrants into the new and fast-growing market Reddy traveled to Bombay to pursue S ! Dpharmacology studies, then went on to earn a Ph D in chemical engineering Reddy then went to S ! D S ! D S ! D BiZdoM : Companies History Part 1work for state-owned pharmaceutical company IDPL At the time IDPL had been reliant on Russian S ! Dtechnology; yet the company quickly turned the tables, gaining expertise --and eventually providingthat to Russia itself S ! DDuracell International Inc S ! DKey Dates:1935: P R Mallory founds Duracells predecessor company S!D S!D S!D1944: Inventor Samuel Ruben joins forces with Mallory, kicks off battery business S!DP R Mallory and his basic business tenets of "invest in research" and "the customer is King" laid the S ! D S ! Dgroundwork for Duracell back in 1935 Independent inventor Samuel Ruben entered the picture in S ! D@Team BiZdoM 172

BIZDOM : COMPANIES HISTORY PART 1 1944 and with Mallory introduced the worlds first mercury battery, forerunner of the alkaline battery The innovation allowed the U S military to replace poorly performing zinc carbon batteries S ! D S ! D S ! D used in their equipment during World War II, according to Gillette S ! D The battery component of Mallorys business grew steadily throughout the post -World War II period, reflecting the booming economy and the rapidly growing market for consumer durables and electronic consumer goods, some of which would require battery power The first hearing aid button S ! D cell used Rubens mercury battery technology S ! D During the early 1960s, the company introduced its AA size and AAA size alkaline batteries The S ! D Duracell brand name was adopted in 1964, and the Copper Top graphic came on the scene early in the 1970s S ! D Although revenues were growing, the company also closely tracked the bus iness cycle because sales of many of its products were at the mercy of consumer buying power, itself a function of wages and earnings From the early 1960s into the mid-1970s sales grew strongly (the average annual rate was S ! D 5 percent from 1963 to 1972); however, company profits reflected the recession of the mid - and late-1960s, with earnings per share hitting a peak of $2 34 in 1966 before falling sharply with the S ! D recession With the beginning of the deep recession in mid-1973, company earnings began to fall S ! D sharply S ! D Mallorys profit margins were respectable in that price-competitive climate, but were under constant pressure The boom of 1972 allowed the firm to boost sales of electrical and electronic items to S ! D industry, complementing consumer sales Specifically, makers of appliances bought Mallory S ! D components to satisfy the growing retail demand for household items, such as laundry units, electric and gas ranges, and dishwashers, among other consumer durables The company saw this expansion S ! D of consumer durables, in particular, as a basis for long-term growth S ! D E I du Pont de Nemours & Company S ! D S ! D Founder Éleuthère Irenée du Pont de Nemours was born to French nobility He studied with the S ! D chemist in charge of manufacturing the French governments gunpowder, An toinne LaVoisier The S ! D years of turmoil preceding the French Revolution caused him to immigrate to the United States in 1797 He chose to build his production facilities on a site on the Delawares Brandywine River, which S ! D was central to all of the states at the time and provided sufficient water power to run the mills Du S ! D Pont rapidly established a reputation for superior gunpowder He died in 1834, leaving his sons S ! D Alfred and Henry to buy out French financiers and continue the business His sons expanded theBiZdoM : Companies History Part 1 | S ! D companys product line into the manufacture of smokeless powder, dynamite, and nitroglycerine S ! D One century after its founding, the gunpowder and explosives combine faced dissolution when senior partner Eugene du Pont died at the age of 62, after having served 42 years With no new leadership, S ! D the surviving partners decided to sell the company to the highest bidder Alfred I du Pont, a distant S ! D S ! D relative of the founder, purchased the firm with the aid of his cousins Alfred was intent on saving S ! D the family business Although he had grown up working in gunpowder yards, he lacked the S ! D organizational skills needed to run the firm His cousins Pierre S du Pont and Thomas Coleman S ! D S ! D possessed the financial acumen and led the family company to unprecedented success The purchase S ! D price was set at $12 million, but secret investigations by the cousins unveiled company assets conservatively valued at $24 million The old partnership also held a great deal of undervalued S ! D Feedback at bizdomonline@gmail.com 173

shares in other companies, among them their direct competitors in the gunpowder business, Hazardand Laflin & Rand S ! DA Gunpowder Monopoly by 1900DuPont grew to command the entire explosives market So dominant were they by 1907 that the S ! DU S government initiated antitrust proceedings against them DuPont was deemed a gunpowder S ! D S ! D S ! Dmonopoly in 1912 and ordered to divest itself of a substantial portion of its business In addition, S ! Dearly years of incorporation were fraught with tension between Alfred and his more practical cousins S ! DArguments ensued over the modernization of the Brandywine yards Coleman and Pierre saw S ! Dmodernization as the only way to fully utilize the plant The quarrel, along with other incidents, S ! Dprompted Coleman and Pierre to take away Alfreds responsibilities in 1911 In effect, this left Alfred S ! Da vice-president in name only S ! DModernization, diversification, good management, and a command of the market characterizedDuPonts industrial era phase The experiments of DuPont chemists with a product known as S ! Dguncotton, an early form of nitroglycerine, led to the companys involvement in the textile business S ! DThe end of World War I proved the peacetime use of artificial fibers to be more profitable thanexplosives In the 1920s DuPont acquired French rights for producing cellophane DuPont made it S ! D S ! Dmoistureproof, transforming cellophane from a decorative wrap to a packaging material for food andother products DuPont also produced the clothing fiber Rayon in the 1920s, and used a stronger S ! Dversion of the fiber for auto tire cord S ! DDeveloped Synthetics in the Mid-20th CenturyDuPont gradually moved away from explosives and into synthetics Their most important discovery, S ! DNylon, was created in 1930 by a polymer research group headed by Wallace H Carothers The S ! D S ! Dsynthesis of nylon came from the hypothesis that polymeric substances were practically endlesschains held together by ordinary chemical bonds Long chain molecules could be built one step at a S ! Dtime by carrying out well-understood reactions between standard types of organic chemicals S ! DCarothers chose one of natures simplest reactions&mdashçohols reacting with acids to form esters S ! DBy reacting compounds with alcohol groups on each end with analogous acids, polyesters wereproduced Super polymers were later formed when a molecular still was used t o extract the water S ! D BiZdoM : Companies History Part 1that was formed in the reaction The excess water had created a chemical equilibrium that stopped S ! Dreaction and limited chain growth Experimentation with diamine-dibasic pairs produced a molten S ! Dpolyamide that could be drawn into filaments, cooled, and stretched to form very strong fibers S ! DDuPont later marketed a 6-6 polymer, which was made from the inexpensive starting compoundBenzene The new fiber proved remarkably successful It was employed as a material for S ! D S ! Dundergarments, stockings, tire cord, auto parts, and brushes S ! DA large number of plastics and fibers followed Products such as Neoprene (synthetic rubber), Lucite S ! D(a clear, tough plastic resin), and Teflon (a resin used in nonstick cookware) became commonplace,as did Orlon (a bulky acrylic fiber), Dacron polyester, and Mylar DuPont quickly became known as S ! D@Team BiZdoM 174

BIZDOM : COMPANIES HISTORY PART 1 the worlds most proficient synthesizer The range of textiles that they supplied reoriented the whole S ! D synthetic field S ! D Not every DuPont invention was a success, however Corfam, a synthetic leather product, proved to S ! D be a disaster Lammont du Pont Copeland, the last du Pont to head the company, invested millions of S ! D dollars into promoting Corfam in the 1960s The product was not successful because, although the S ! D material lasted practically forever, it lacked the flexibility and breathability usually found in leather products Lammont relinquished the chief executive post in 1967 and was succeeded by Charles B S ! D S ! D McCoy, son of a DuPont executive Irving Shapiro took the post in 1974 Shapiro had served DuPont S ! D S ! D well, acting as the principal lawyer negotiating the antitrust suit brought against DuPont and General Motors Corporation S ! D Shapiro led DuPont for six years during a period when the fibers industry stagnated from overcapacity DuPonts stream of synthetic fiber discoveries had led it into a trap, for it left them S ! D content to exploit the fiber market without looking elsewhere for new products The demand for S ! D fibers collapsed in the mid-1970s, causing a halt in the companys main business Climbing raw S ! D material costs and declining demand combined to depress the market in 1979 The innovator of a S ! D new technology had been the last to recognize that the market it created was losing momentum The S ! D collapse compelled DuPont to concentrate exclusively on repairing its old business, delaying actions to create a new base DuPonts rebuilding efforts were also hindered by reducing its commitment to S ! D research and development Continued reliance on fibers caused DuPont to be one of the worst hit S ! D chemical companies in the 1980 recession S ! D DuPonts continued attention to the fibers business, however, resulted in an important discovery in 1980 Kevlar was added to the companys assemblage of synthetic textiles DuPont scientist S ! D S ! D Stephanie Kwolek discovered the solvent that unclumped the hard chains of molecules comprising an intractable polymer The resultant revolutionary material proved to be light yet strong, possessing a S ! D tensile strength five times that of steel Fabrics made of Kevlar were heat and puncture resistant S ! D S ! D When laminated, Kevlar outstripped fiberglass DuPont made the largest financial gamble in its S ! D history, investing $250 million in a Kevlar plant expansion Applications for Kevlar ranged from heat S ! D resistant gloves, fire resistant clothing, and bullet resistant vests to cables and reinforcement belting in tires Kevlar also proved successful in the fabrics industry: one half of the police force in the S ! D United States soon wore Kevlar vests Kevlars true success, however, depended on the price of its S ! D raw material--oil Kevlar showed no threat of becoming a steel replacement, since the price of its S ! D production was considerably higher S ! D Diversification in the Early 1980sBiZdoM : Companies History Part 1 | DuPont reacted to the depressed market in textiles by arranging mergers and acquisitions of other companies in other industries DuPonts takeover of the Conoco Oil company (the United States S ! D number two petroleum firm) was the largest merger in history Issues of antitrust were prevalent in S ! D negotiation for the merger, but in the end DuPont bought Conoco for $7 8 billion DuPont merged S ! D S ! D with Conoco to protect itself from the rise in crude oil prices As oil supplies dwindled, a supply of S ! D Conoco oil and coal as raw material for DuPonts chemicals provided a competitive advantage S ! D Conocos sites in Alberta, Canada, and off the north slope of Alaska provided large amounts of these resources DuPonts only disadvantage in the Conoco takeover was the introduction of Edgar S ! D Bronfman, chairman of the Seagram Company, the worlds largest liquor distiller, into a minority position in DuPont-Conoco Conoco had been a major acquisition target for Seagram The merger left S ! D S ! D Seagram with 20 percent of DuPont Bronfman saw himself as a long-term investor in DuPont and S ! D Feedback at bizdomonline@gmail.com 175

desired an important voice in the companys direction However, Seagram and DuPont arrived at an S ! Dagreement whereby Seagram could not purchase more than 25 percent of DuPont stock until 1991 S ! DESPN, Inc S ! DKey Dates:1978: Bill Rasmussen forms Entertainment Sports Programming Network, Inc (ESPN) to S!Dbroadcast sporting events to cable television operators via satellite S!DESPN, Inc was the brainchild of Bill Rasmussen, an unemployed sports announcer In the spring of S ! D S ! D1978 Rasmussen was fired by the New England Whalers of the World Hockey Association as itscommunications director and play-by-play announcer He began looking for a way to broadcast S ! DUniversity of Connecticut basketball games through cable television operators in the state At the S ! Dtime, satellite technology was a relatively new way of transmitting programming to cable operators S ! DRCA had an underused satellite on which Rasmussen could lease time With six of 23 active S ! Dtransponder sites fully available, RCA was eager for customers S ! DAfter discovering that it was cheaper to rent satellite time from RCA for 24 hours rather than for fivehours, Rasmussen decided to offer 24-hour sports programming on a national basis RCA offered S ! DRasmussen an easy payment program, so he used his credit card to lease space on RCAs Satcom 1in July 1978 He called his company Entertainment Sports Programming Network, Inc , or ESP S ! D S ! DNetwork for short According to company legend, it became ESPN when the companys letterhead S ! Dcame back that way from the printer S ! DESPN began broadcasting in September 1979 with limited airtime during the week and 24-hourcoverage on the weekends The company had signed up 625 cable system affiliates, reaching more S ! Dthan one million of a total of 20 million households that had cable at that time Its first televised S ! Devent was a slow-pitch world series softball game between the Milwaukee Schlitzes and the KentuckyBourbons ESPNs first sponsor was Anheuser-Busch, which purchased $1 4 million worth of S ! D S ! Dadvertising--a record for cable television Through a deal with the NCAA, ESPN broadcast college S ! Dfootball games as well as other sports To fill airtime, ESPN would often broadcast the same games S ! Dmore than once In March 1980 ESPN covered early rounds of the NCAA basketball tournament, S ! Dwhich featured future NBA stars Larry Byrd and Earvin "Magic" Johnson In September 1980 ESPN S ! Dbegan broadcasting on a full, 24-hour basis New programming included weekly boxing matches S ! D S ! D BiZdoM : Companies History Part 1Becoming an Established Sports Network: 1980sESPNs early financing came from Getty Oil, which invested $10 millio n in the company in 1979 fora controlling interest Getty hired Chet Simmons, president of NBC Sports, to run ESPN After seeing S ! D S ! Dits financing rise to $25 million with no profits in sight, Getty hired management consultant McKinsey& Co to assess ESPNs future McKinseys lead consultant on the project was Roger Werner, who S ! D S ! Dforecast that ESPN would become profitable in five years with another $120 million investment S ! DFollowing its acquisition by ABC, which was acquired by Capital Cities Communications, I nc at the S ! Dbeginning of 1986 to form Capital Cities/ABC Inc , ESPN landed major broadcasting contracts from S ! D@Team BiZdoM 176

BIZDOM : COMPANIES HISTORY PART 1 the National Hockey League (1985), the National Football League (1987), and Major League Baseball (1989) According to Cablevision, ESPN became part of the American consciousness when it S ! D broadcast the finals of yachtings Americas Cup live from Australia in January 1987 The New York S ! D Times devoted a front-page story to the coverage, noting how people were hosting late -night and early-morning parties to watch the races, or gathering in bars to cheer on the American team Two S ! D months later the National Football League awarded ESPN its first -ever package of games to be broadcast on cable television, which began in August 1987 with the televised broadcast of the inaugural game at the Miami Dolphins Joe Robbie Stadium against the Chicago Bears The four-year S ! D contract was renewed for 1990-93 at a cost of about $450 million to ESPN In addition, ABC-TV S ! D paid about $900 million for its package of Monday night a nd weekend games S ! D New Parent, Walt Disney: 1995-99 In mid-1995 Walt Disney Company acquired ESPNs parent company, Capital Cities/ABC, giving Disney an 80 percent interest in ESPN and full control of its operations The Hearst Corporation, a S ! D passive investor in ESPN, retained the 20 percent interest in ESPN it had purchased from RJR Nabisco Inc in 1990 for an estimated $170 million In April 1996 Disney announced plans to S ! D S ! D combine ESPN and ABC Sports into a single operating unit under the control of Steve Bornstein S ! D Although Bornstein became president of both ESPN and ABC Sports, he made it clear that the two would remain separate and distinct businesses S ! D Eastman Kodak Company 1880: George Eastman begins manufacturing dry plates for sale to photographers S!D 1881: Eastman and Henry A Strong form partnership, Eastman Dry Plate Company S!D S!D 1884: Company is reorganized as a corporation under the name Eastman Dry Plate and Film Company S!D The company bears the name of its founder, George Eastman, who became inter ested in photography during the late 1870s while planning a vacation from his job as a bank clerk in Rochester, New York Taking a coworkers suggestion to make a photographic record of his intended S ! D trip to Santo Domingo, the 24-year-old Eastman soon found that the camera, film, and wet-plate- developing chemicals and equipment he had purchased were far too bulky Instead of following S ! D through with his original vacation plans, Eastman spent the time studying how to make photography more convenient He discovered a description of a dry-plate process that was being used by British S ! D photographers He tried to replicate this process in his mothers kitchen at night after work S ! D S ! D After three years Eastman produced a dry glass plate with which he was satisfied In 1880 heBiZdoM : Companies History Part 1 | S ! D obtained a U S patent for the dry plate and for a machine for preparing many plates at one time, S ! D S ! D and he started manufacturing dry plates for sale to photographers Henry A Strong, a local S ! D S ! D businessman impressed by Eastmans work, joined him on Januar y 1, 1881, to form the Eastman Dry Plate Company Eastman left his position at the bank later that year to give his complete attention to S ! D the new company S ! D The new venture almost collapsed several times during its early years because the quality of the dry plates was inconsistent and Eastman insisted that the defective plates be replaced at no charge to the customer Despite these setbacks, he was determined to make the camera as convenient as the S ! D pencil S ! D Feedback at bizdomonline@gmail.com 177

As his business grew, Eastman experimented to find a lighter and more flexible substitute for theglass plate In 1884 he introduced a new film system using gelatin -coated paper packed in a roll S ! Dholder that could be used in almost every plate camera available at that time Also that year, the S ! Dcompany was reorganized as Eastman Dry Plate and Film Company Strong was president and S ! DEastman treasurer and general manager of the 14-shareholder corporation The company also S ! Dopened a sales office in London in 1885 to take advantage of the growing European photogr aphymarket S ! DIn 1888 Eastmans company introduced its first portable camera Priced at $25, it included enough S ! Dfilm for 100 pictures After shooting the roll of film, the owner sent both the film and the camera to S ! DRochester for processing For $10, the company sent back the developed prints and the cameraS ! Dloaded with a new roll of film This breakthrough is considered to be the birth of snapshot S ! Dphotography It was also at this time that Eastman trademarked Kodak, which he invented by S ! Dexperimenting with words that began and ended with his favorite letter, K The company advertised S ! Dits new camera extensively using the slogan, You push the button, we do the rest S ! DThe following year, the Eastman Photographic Materials Company was incorporated in the Uni tedKingdom to distribute Kodak products outside the United States from its headquarters in London S ! DThe company built a manufacturing plant in 1891 outside London to accommodate the growingproduct demand overseas and set up additional distribution sites i n France, Germany, and Italy by1900 In 1889 the firms name was changed to Eastman Company and in 1892 to Eastman Kodak S ! DCompany of New York S ! DEastman was committed to bringing photography to the greatest number of people at the lowestpossible price As his company grew and production of both the camera and film increased, S ! Dmanufacturing costs decreased significantly This allowed the firm to introduce a number of new S ! Dcameras, including the Folding Pocket Kodak Camera, the precursor of all modern roll -film cameras,in 1898 It also brought out the first of a complete line of Brownie cameras, an easy -to-operate S ! Dmodel that sold for $1 and used film that sold at 15 cents per roll, in 1900 The following year, the S ! Dcompany was reorganized and incorporated in New Jersey as Eastman Kodak Company S ! D1900s Through 1960s: Continuing New Product Success BiZdoM : Companies History Part 1Over the next 20 years, the company continued to introduce photographic innovations In 1902 S ! DKodak brought to market a new developing machine that allowed film processi ng without benefit of adarkroom The 1913 introduction of Eastman Portrait Film provided professional photographers with S ! Da sheet film alternative to glass plates S ! DIn 1912 George Eastman hired Dr C E Kenneth Mees, a British scientist, to head one of the first S ! D S ! D S ! DU S industrial research centers Based in Rochester, New York, this lab was where various tools and S ! D S ! D S ! Dmanufacturing processes that provided the company with a continuing stream of new products in the1920s were invented These new products--which included 16-millimeter Kodacolor motion picture S ! Dfilm, the 16-millimeter Cine-Kodak motion picture camera, and the Kodascope projector (all of whichdebuted in 1923)--were targeted at the mass market and priced appropriately S ! D@Team BiZdoM 178

BIZDOM : COMPANIES HISTORY PART 1 Kodak developed other new products to support the countrys involvement in World War I In 1917 S ! D the company developed aerial cameras and trained U S Signal Corps photographers in their use It S ! D S ! D S ! D also supplied the U S Navy with cellulose acetate, a film product, for coating airplane wings, and S ! D S ! D produced the unbreakable lenses used on gas masks Following the war, Eastman became president S ! D of the company upon Strongs death in 1919 S ! D George Eastman had always been civic-minded; even as a struggling bank clerk he donated money to the Mechanics Institute of Rochester As Kodak grew, his philanthropy extended to such institutions S ! D as the Massachusetts Institute of Technology, the Hampton and Tuskegee institutes, and the University of Rochester He was instrumental in starting numerous dental clinics around the world, S ! D and he enjoyed a reputation as a paternalistic employer because of his profit -sharing programs and insurance benefits for workers In 1932 George Eastman committed suicide at the age of 77, leaving S ! D a note that read, To my friends My work is done Why wait? G E S ! D S ! D S ! D S ! D That same year, the company introduced the first eight -millimeter motion picture system for the amateur photographer, consisting of film, cameras, and projectors Three years later, it made S ! D available 16-millimeter Kodachrome film, the first amateur color film to gain commercial success S ! D Similar film products for 35-millimeter slides and eight-millimeter home movies were introduced in 1936 S ! D New photographic products continued to be introduced over the next decade, even as the c ompany devoted a portion of its manufacturing capability to the production of equipment and film for the military during World War II Following the war, Kodak focused its total attention once again on S ! D amateur photography with the introduction of a low -priced Brownie eight-millimeter movie camera in 1951 and the accompanying projector one year later S ! D In 1953 the company formed Eastman Chemical Products, Inc to market alcohols, plastics, and S ! D fibers for industrial use These substances were manufactured by Tennessee Eastman Company and S ! D Texas Eastman Company, two subsidiaries that had been formed in 1920 and 1952, respectively S ! D The company had begun to manufacture these items because of its own use of chemicals in film manufacturing and processing S ! D 1970s Through Early 1990s: Diversifying and Losing Ground Amid Increasing Competition In the early 1970s, Eastman Kodak became the defendant in a series of antitrust suits filed by several smaller film, camera, and processing companies These legal actions alleged that Kodak S ! D illegally monopolized the photographic market The most widely publicized suit, filed by BerkeyBiZdoM : Companies History Part 1 | S ! D Photo, charged that Kodak had violated the Sherman Antitrust Act by conspiring with two other companies, Sylvania Companies, a subsidiary of GTE Pro ducts Corporation, and General Electric Company, to develop two photographic flash devices Berkey requested that Eastman Kodak be S ! D divided into ten separate companies and asked for $300 million in damages The case was settled in S ! D 1981 for $6 8 million S ! D S ! D In 1975 Kodak introduced the Ektaprint 100 Copier-Duplicator, putting itself into direct competition with two firmly entrenched rivals, Xerox Corporation and International Business Machines Corporation Kodak considered this market to be a good fit with its existing microfilm business In S ! D S ! D addition, the company had already established a foothold with a similar product, the Verifax machine, which had been introduced in 1953 This copier used a wet process like that used in S ! D Feedback at bizdomonline@gmail.com 179

photography, but it had become obsolete when Xerox introduced a technological advancement calledxerography, which was less messy and produced better quality copies than previous systems After S ! Dcareful research and planning, the Ektaprint copier was developed to serve businesses with large -scale duplicating needs Not only could the Ektaprint produce numerous copies at high speed, but it S ! Dcould also collate them while duplicating, a unique feature at the time S ! DElectronic Arts Inc S ! DElectronic Arts was founded in 1982 by three former managers of Apple Computer: William M S ! D(Trip) Hawkins III, who was a marketing director at Apple and at age 26 became head of the newenterprise; William Bingham (Bing) Gordon, who became the companys director of marketing; andTom Mott Both Hawkins and Gordon earned MBAs from Stanford University The decision was made S ! D S ! Dto form a company that specialized in developing and marketing software games for homecomputers at a dinner with four other friends at Hawkinss home EA started with a team of 11 S ! Dpeople and $5 million in capital from private investors S ! DEA was flexible from the beginning, developing its software for whatever computer hardware wasmost popular at the time, usually then producing multiple versions of programs to run on differentsystems EAs first product, shipped in May of 1983, was a software game for the Atari 800 game S ! Dplayer, but shortly thereafter the market shifted to the Commodore system EA readjusted quickly, S ! Dand in October 1983 it shipped six more games for the Commodore 64 computer In 1984 its S ! DSkyfox computer game, designed for the Apple II computer, became a best -seller Two years later S ! DEA began producing games for the new Commodore Amiga, which turned out to be a very popularcomputer By 1990 EA was investing an additional 50 percent of each products development costs S ! Dto retool the software so that it could run on a different hardware system S ! DGames software in the early 1980s was still a very new industry, as personal computers were not yetwidespread Thus, EA took a fresh approach to designing software, modeling the development and S ! Dproduction more on the entertainment industry than on the software industry Instead of hiring S ! Dcomputer programmers, EA hired software graphic arts designers and project managers it calledproducers Ideas for new computer games often came from freelancers, who proposed game S ! Dscenarios just as independent scriptwriters submit their scripts to Hollywood studios If an idea was S ! Dapproved by an in-house committee, the project was assigned to a producer Later, more of the S ! D BiZdoM : Companies History Part 1ideas were developed in-house, but EA continued to consider its software developers artists S ! DElectrolux ABKey Dates:1919: Lux and Elektromekaniska merge to form Aktiebolaget Elektrolux S!D1921: The Lux V vacuum cleaner is introduced S!D1925: The company acquires Arctic, an absorption refrigerator manufacturer S!D1956: Axel Wenner-Gren sells his stake in the firm to Wallenberg, a Swedish financegroup S!D1957: The company changes the spelling of its name to Electrolux S!D@Team BiZdoM 180

BIZDOM : COMPANIES HISTORY PART 1 1962: ElektroHelios, a Scandinavian market leader in compressor refrigerators and freezers, is acquired S!D 1967: Hans Werthén is named president S!D 1974: Electrolux purchases United States-based Eureka S!D The Electrolux empire originated with the perspicacity and marketing flair of A xel Wenner-Gren, who spotted the potential of the mobile vacuum cleaner only a few years after its invention by Englishman H C Booth in 1901 In 1910 the young Wenner-Gren bought a part share in the European agent of S ! D S ! D S ! D a U S company producing one of the early vacuum cleaners, the clumsy Santo Staubsauger After a S ! D S ! D S ! D couple of years as a Santo salesman for the German-based agent, Wenner-Gren sold his share of the company and returned to Sweden, where the building blocks for the future Electrolux, Lux and Elektromekaniska AB, were already in place S ! D Sven Carlstedt had formed Elektromekaniska in 1910 to manufacture motors for a vacuum cleaner based on the Santo, which was produced by Swedish engineer Eberhardt Seger Since its founding in S ! D 1901, Lux had manufactured kerosene lamps Now confronted with a shrinking market owing to the S ! D introduction of electric lighting, Lux head, C G Lindblom, proposed to Sven Carlstedt that the two S ! D S ! D companies form a joint venture for the production and marketing of a new vacuum cleane r S ! D In 1912 Wenner-Gren became the agent for the Lux 1 vacuum cleaner in Germany, subsequently taking on the United Kingdom and France Over the next few years Wenner-Grens role in the S ! D company grew, and the machine gradually became lighter and more ergono mic Wenner-Gren S ! D foresaw a potential sales bonanza in Europe after the end of World War I Initially unable to S ! D persuade his colleagues to step up production capacity, he overcame their reluctance by guaranteeing a minimum sales figure through his own sales company, Svenska Elektron (later known as Finans AB Svetro) S ! D Lux and Elektromekaniska merged in 1919 as Aktiebolaget Elektrolux (the spelling was changed to Electrolux in 1957) Wenner-Gren became president and a major shareholder of the new company S ! D S ! D In 1921 the Lux V was introduced This new model resembled a modern cylindrical vacuum cleaner, S ! D but it glided along the floor on ski-like runners instead of wheels The Lux V was to present serious S ! D competition to the upright Hoover machines in the 1920s S ! D The convenience and attractive styling of its product helped to get the new company off to a promising start, but the salesmanship of Electroluxs president probably played an even bigger part S ! D Wenner-Gren was a great believer in the door-to-door sales techniques already espoused by competitors such as Hoover in the United States Vacuum cleaners were demonstrated to potential S ! D customers in their own homes, and buyers were allowed to pay for their machines in installments S ! D Wenner-Gren knew how to get the best out of his sales forceBiZdoM : Companies History Part 1 | S ! D To todays sales managers, sales training, competitions, and slogans like "Every home an Electrolux home" are familiar methods of boosting sales, but when Wenner -Gren introduced them they were revolutionary He also believed in leading from the front The story of how he sold a vacuum cleaner S ! D S ! D to the Vatican is part of company mythology Four competitors demonstrated their machines first, S ! D each vacuuming their allocated area of carpet When Wenner-Grens turn came, instead of S ! D vacuuming the fifth area, he went over the first four again The resultant bagful of dust persuaded S ! D the pope to add his palace to the growing number of Electrolux homes Advertising, too, was S ! D imaginative Not only did Electrolux make extensive use of the press, but in the late 1920s, citizens S ! D of Stockholm, Berlin, and London were liable to encounter bizarre vacuum cleaner -shaped cars in the streets S ! D Feedback at bizdomonline@gmail.com 181

Bizarre or not, the sales methods worked, and the company grew Throughout the 1920s, new sales S ! Dcompanies sprang up, not only all over Europe but also in the United States in 1924, Australia in1925, and South America Many of these were financed by Wenner-Gren himself rather than by S ! DElectrolux in Sweden Vacuum cleaner manufacturing plants also started to open overseas, first in S ! DBerlin in 1926 and a year later in Luton, England, and Courbevoie, France S ! DBy 1928 Electrolux had sales of SKr 70 million It had five manufacturing plants, 350 worldwide S ! Doffices, and 20 subsidiaries In spite of this geographic expansion, the company was often short of S ! Dfunds, in part because of the system of payment by installments It became clear that further growth S ! Dwould require increased capital, and it was decided to float the company on the London StockExchange and to issue more shares Prior to flotation in 1928, Electrolux bought out many of the S ! Drelated companies owned by Wenner-Gren, though he retained his minority shareholding in theAmerican Electrolux Corporation until 1949 S ! DDiversifying into Refrigerators in the Mid-1920sDuring the 1920s Electrolux introduced a number of new products, including floor -polishers, anatural progression from vacuum cleaners, which were brought out in 1927 The main diversification S ! Dof the 1920s, however, came through the acquisition in 1925 of Arctic, a company manufacturing anovel machine, the absorption refrigerator This type of refrigerator has no moving parts, though S ! Dearly models required connection to a source of running water Power can be provided by electricity, S ! Dgas, or kerosene as opposed to the compression method of refrigeration, which relies on electricpower Early compressors were noisy and bulky, so the new Electrolux system had several advantages S ! Dover its competitors compression refrigerators S ! DA new air-cooled version of Electroluxs absorption refrigerators was introduced in 1931, and by1936 more than one million had been sold Demand for the machines grew as restrictions were S ! Dplaced on the use of food preservatives by legislation such as the United Kingdom Food PreservativeAct of 1927 In the United States, Servel Inc had acquired a license to manufacture Electroluxs S ! D S ! Drefrigerators S ! DElectroluxs original vacuum cleaner factory on Lilla Essingen was devastated by fire in 1936 When S ! Dit was rebuilt the following year, the opportunity was taken to fit it with the latest equipment and to BiZdoM : Companies History Part 1install a central research laboratory S ! DIn 1926 Wenner-Gren became chairman of the board, with Ernst Aurell taking over as president S ! DDuring the 1930s Wenner-Gren remained chairman but reduced his involvement in the running ofthe company, prior to resigning from his post in 1939 Harry G Faulkner, a British accountant who S ! D S ! Dhad been instrumental in the companys consolidation prior to the 1928 flotation, succeeded Aurellin 1930 and remained president throughout the 1930s S ! DWith intensive marketing and continued investment in research and development, Electrolux rode outthe Great Depression By 1939 annual sales stood at SKr 80 million In 1939 Gustaf Sahlin, former S ! D S ! Dpresident of the United States Electrolux Corporation, took over the presidency of the parent@Team BiZdoM 182

BIZDOM : COMPANIES HISTORY PART 1 company from Faulkner Throughout World War II, despite the loss of some manufacturing plants, S ! D Electrolux managed to maintain many of its usual activities, opening operations in Australia, Venezuela, and Colombia At home in Sweden, it acquired companies in the fields of commercial S ! D laundry equipment and outboard motors Much energy, however, was diverted into the war effort, S ! D including the manufacture of munitions and of air cleaners for the Swedish for ces S ! D Eli Lilly and Company Key Dates: 1876: Colonel Eli Lilly starts making ethical drugs in Indianapolis S!D 1881: Company is incorporated S!D 1886: Lilly hired its first scientist, Ernest Eberhardt, to establish one of the first pharmaceutical research and development programs S!D 1923: Eli Lilly and Company begins selling Iletin, the first commercially available insulin S!D Despite its huge domestic and international operations, Lilly continued to maintain a close allegiance to the U S Midwest and wielded significant influence in its native city For instance, in 1971 Forbes S ! D S ! D S ! D magazine prepared a profile of the company, but because Lilly did not want the article published, an Indianapolis newspaper refused to sell Forbes photographs of the Lilly family S ! D Much of this community loyalty stemmed from Lillys long history of paternalism and generosity In S ! D 1876, Colonel Eli Lilly, a Civil War veteran, built a laboratory in Indianapolis and began to manufacture ethical drugs The business established itself successfully with the innovation of high- S ! D quality gelatin-coated capsules, and it was not long before Colonel Lilly was able to serve Indianapolis in a variety of ways He served as president of the Commercial Club to help in the development of S ! D the city and chaired a committee to help the indigent during the financial panic of 1893 He also S ! D donated his own personal funds to build a childrens hospital in memory of his 13 -year-old daughter who died of diphtheria S ! D This civic consciousness was inherited by the second an d third generation of Lilly management S ! D During the Depression, the Colonels grandson, Eli Lilly, refused to lay off any employees Instead, he S ! D had them help with general maintenance of the facility until they could return to their normal jobs S ! D The Lilly family in 1937 established the Lilly Endowment to provide financial support for educational, cultural, and religious institutions The family donated $5 million worth of rare books to Indiana S ! D University, and later the Smithsonian Institution acquired a fam ily coin collection worth $5 5 million S ! D S ! D The endowment also funded new buildings, music schools, student centers, and laboratories in most colleges and universities in Indiana and in several other statesBiZdoM : Companies History Part 1 | S ! D Lilly also laid the foundations for its reputation for marketing ingenuity in those early years After the S ! D 1906 San Francisco earthquake, the company sent as much of its stock as it could to the disaster area at the request of sales personnel and wholesalers Since then the ready availability of Lillys S ! D products was central to its marketing strategy That and aggressive advertising campaigns, plus its S ! D large, eager sales force, have been the keys to its marketing success Its sales marketing department S ! D was formally established around 1922 S ! D Besides being a pioneer in pharmaceutical marketing, Lilly was known for its development of many important drugs In the 1920s, Lilly began selling the worlds first commercially available insulin that S ! D would benefit millions with diabetes In the years ahead it would remain the leading manufacturer of S ! D insulin, commanding at least 75 percent of the U S market in the early 1990s S ! D S ! D S ! D Feedback at bizdomonline@gmail.com 183

In the 1920s, the company produced a liver extract for the treatment of pernicious anemia In the S ! D1930s, Lilly laboratories synthesized barbituric acids, essential to the production of drugs used insurgery and obstetrics In 1955 Lilly manufactured 60 percent of the Salk polio vaccine But the S ! D S ! Dcompanys greatest contribution to human health was in production of penicillins and otherantibiotics that revolutionized the treatment of disease S ! DEncyclopaedia Britannica, Inc S ! D1768: Encyclopaedia Britannica is begun in Edinburgh, Scotland, and is printed over nextthree years S!D1809: Original publisher Andrew Bell dies; his heirs sell company to Archibald Constable S!D1827: Constable dies; publishing is taken over by A & C Black, Ltd S!D1889: Ninth edition of Britannica is completed and acclaimed as most scholarly to date S!D1901: Britannica is sold to American publishers Hooper and Jackson S!D1920: Sears, Roebuck & Co buys the Encyclopaedia Britannica Company S!D S!DThe Encyclopaedia Britannica was first published between 1768 and 1771 by a society of gentlemenin Scotland, printed in Edinburgh for A Bell and C Macfarquhar, and sold by Colin Macfarquhar at S ! D S ! Dhis printing office in Nicolson-street, as the First Editions title page informed its readers The idea of S ! Duniting in a single publication all aspects of human knowledge went back at least to Roman times,but it was in the 18th-century, the Age of Enlightenment, that encyclopedias in the modern formbegan to appear in Europe The French Encyclopedie, first published in 1751, became the symbol of S ! DFrench radical humanism and generated international controversy for its allegedly blasphemousphilosophy, but there is no evidence that the creators of the Encyclopaedia Britannica were directlyinspired by the fame of the Encyclopedie (which in fact was begun as a translation of an earlier workby the Englishman Ephraim Chambers) S ! DAndrew Bell, a prosperous engraver of Edinburgh, and printer Colin Macfarquhar were convinced thatthe English-speaking world could use a reference work featuring substantial treatises on the arts,sciences, and trades combined alphabetically with shorter entries defining important terms an dconcepts The two men engaged William Smellie, a 28-year-old scholar at the University of S ! DEdinburgh, as general editor of the First Edition of their proposed Encyclopaedia Britannica, whichwas published and sold in 100 parts between 1768 and 1771 The Encyclopaedia contained 2,659 S ! Dpages, including articles borrowed from such luminaries as Benjamin Franklin (on electricity) and John BiZdoM : Companies History Part 1Locke (on human understanding) The editors themselves wrote many of the shorter articles, while S ! Dthe longest pieces (Surgery and Anatomy) were treatises of well over 100 pages each The new S ! Dencyclopedia sold well, and its editors began immediate preparations for a second, much largereditionS ! DThe 1800s: The A & C Black EraCopyrights to the essays were bought at auction by Adam Black, an Edinburgh bookseller, whocollaborated with his relative Charles Black and their sons to publish the Britannica for the next 70years as A & C Black Ltd The Seventh Edition, edited by Macvey Napier, appeared between 1830 S ! Dand 1842 and included a set of introductory essays intended to describe the progress of human@Team BiZdoM 184

BIZDOM : COMPANIES HISTORY PART 1 knowledge since medieval times in four fundamental classifications: metaphysical, moral, and political philosophy; mathematics and physics; chemistry; and zoology, botany, and min eralogy Similar S ! D attempts to organize all knowledge under a handful of rubrics had been common among encyclopedists, but the increasing scope and complexity of science in the 19th century discouraged the Britannica from making any further efforts in this d irection Indeed, so rapid was the progress of S ! D scientific and historical knowledge in the age of Charles Darwin and Karl Marx that by the 1860s the children of Adam Black were eager to publish a totally new Britannica in tune with the startling changes of their age S ! D The resulting Ninth Edition (completed in 1889) has since been acknowledged as one of the most impressive collections of scholarship ever produced, its articles written by outstanding experts in every domain of the arts and sciences Thomas Henry Huxley, the distinguished biologist, served as S ! D general advisor for the scientific articles; typical of the contributors excellence was the example of Prince Pyotr Kropotkin, the famed Russian political theorist, who wrote his essay on Anarchism from his prison cell in Clairvaux, France S ! D The Ninth Edition sold about 10,000 sets in Great Britain between 1875 and 1898, but it found a far larger market in the United States, where its authorized publisher, Charles Scribners Sons, sold no fewer than 45,000 sets during the same period Unfortunately, international copyright laws had S ! D not been agreed upon between the two countries, and several hundred thousand other, pirated Britannicas were sold in the United States, many of them incomplete or mutilated Such marketing S ! D problems discouraged the Black family, which in 1897 agreed to turn over promotion of the Britannica to an American company led by Horace E Hooper and Walter M Jackson The two men S ! D S ! D S ! D negotiated an agreement with the Times of London whereby that paper--the most respected in England, but also in financial trouble--would advertise, sell, and receive commissions for the latest reprint of the Ninth Edition Although the scheme appeared improbable to many Englishmen, it S ! D succeeded in keeping the Britannica alive until Hooper and Jackson could purchase all copyrights and plates of the encyclopedia in 1901, thus bringing the symbol of Englands cultural dominance into U S hands at about the same time as the Empire lost its economic and political leadersh ip to the S ! D S ! D United States S ! D Hooper and Jackson formed companies in both the United States and England to market their unique product Both men were experienced publishers and booksellers, and in their efforts to find S ! D outlets for the Britannica they were aided in no small measure by the genius of Henry Haxton, a freewheeling advertising executive who devised all manner of ad campaigns, games, and contests to generate popular interest in the formerly staid Britannica After the publication in 1902 of a revised S ! D and supplemented version of the Ninth Edition marketed as the Tenth, Horace Hooper began work in earnest on a completely new Eleventh Edition His enthusiasm was not matched by WalterBiZdoM : Companies History Part 1 | S ! D Jackson, and the two men gradually dissolved their partnership, but the Eleventh Edition sailed on under the editorial guidance of Hugh Chisholm in London and Franklin Hooper (the brother of Horace) in the United States To reassure London bankers of the new editions salability, Horace S ! D Hooper negotiated an arrangement with Cambridge University by which the latter would lend its prestigious name to the encyclopedia in exchange for a degree of editorial control and royalties on sales Suitably impressed, London financiers provided the capital needed to support publication of the S ! D 29 volume Eleventh Edition in 1910 and 1911 Among its contributors were Matthew Arnold, R L S ! D S ! D S ! D Stevenson, and Alfred North Whitehead, and, like the Ninth Edition, the Eleventh would be long remembered as a treasure of world scholarship The edition was the first to be dedicated to the U S S ! D S ! D S ! D president as well as the British monarch, and the first to be printed by the large American printing firm of R R Donnelley and Sons Despite its wealth of distinguished contributors and the imprimatur S ! D S ! D S ! D Feedback at bizdomonline@gmail.com 185

of Cambridge University, sales of the Eleventh were slowed by World War I, and the Britannica founditself once again in severe financial difficulty S ! DChanging American Owners in the Early 1900sU S marketing provided the solution again, this time via the retailing giant S ears, Roebuck & Co S ! D S ! D S ! DHorace Hooper had long been the friend and golfing partner of Julius Rosenwald, the president ofSears and a well known philanthropist in his own right Rosenwald took an interest in the fortunes of S ! Dthe Britannica, and in 1915 Sears agreed to market a new, less expensive version of the EleventhEdition designed to appeal to the middle-class buyer throughout the English-speaking world Sales S ! Dremained weak, however, and in 1920 Sears bought Encyclopaedia Britannica Company outright,retaining Horace Hooper as publisher and his brother Franklin as editor in New York, with HughChisholm remaining London editor Searss purchase of the Britannica was a philanthropic gesture S ! Drather than a business decision, as it was clear by this time in its h istory that the encyclopedia wouldbe chronically short of cash Indeed, after three years of operation Sears reported a loss of $1 8 S ! D S ! Dmillion at the Britannica and in 1923 sold the company back to the widow of Horace Hooper (whohad died in 1922) and her brother, William J Cox S ! D S ! DEnergizer Holdings, Inc S ! D1913: American Ever Ready is acquired by National Carbon S!D1959: Union Carbide forms Consumer Products Division to market batteries S!D1980: Union Carbide launches Energizer alkaline battery S!DEnergizer Holdings was originally a battery and electric lighting firm known as American Ever ReadyCompany, with offices in New York and San Francisco In the 1890s, this company was marketing a S ! Dso-called electric hand torch--what we today call a flashlight In 1913 this company was acquired by S ! Dthe National Carbon Company, Inc , a unit of Union Carbide & Carbon Corporation, later known S ! Dsimply as Union Carbide National Carbon was already making batteries, advertising its Columbia S ! Dbrand dry cells with an eagle motif and the slogan Columbia Batteries Circle the Globe After the S ! Dacquisition, National Carbon began using the Eveready name for its batteries Later the battery S ! Dbusiness of National Carbon folded into the parent company, and Eveready batteries were made bythe Battery Products Division of Union Carbide Union Carbide was a leader in the United States S ! Dbattery market from early on, along with such other companies as General Electric, Electric Storage BiZdoM : Companies History Part 1Battery, and Gulton Industries Sales of its Eveready Layerbilt batteries grew rapidly in the 1920s, S ! Drising from 12 5 million batteries sold in 1922 to 303 million in 1926 The rise in sales was S ! D S ! Dattributable to the new craze for the radio, which at first was battery operated By the late 1920s, S ! Dhowever, plug-in radios became the norm, and the market for batteries contracted S ! DDuring World War II the Germans developed a new battery made of sealed nickel cadmium plates,and Union Carbide brought this technology to the United States after the war, as did General Electricand Gulton In 1947 Union Carbide came out with the first hearing aid batteries, and followed this S ! Dwith other advances in the next decade The company developed watch cells in the late 1950s, as S ! Dwell as 9-volt transistor batteries At this time Union Carbides battery division also created the first S ! Dalkaline batteries, the type which is so common in consumer products today Although aware of its S ! D@Team BiZdoM 186

BIZDOM : COMPANIES HISTORY PART 1 importance, Union Carbide did not press the alkaline battery as much as it might have, and continued to lead the market with its carbon zinc Eveready brand battery through the 1970s It also S ! D made rechargeable batteries, which had military and space program uses, car batteries, and a variety of industrial batteries S ! D Memorable Bunny Ads: A 1990s Sensation As a unit of a food and pet food conglomerate, Evereadys marketing had not been that different from the way other grocery items were presented Eveready came up with brand extensions, such as S ! D the Eveready Classic and the Eveready Super Heavy -Duty New packaging to coordinate with S ! D wrapping paper came out as GiftMate Energizers around Christmas, and a brand aimed at audio equipment users came out, the Conductor This strategy was tried and true for many food items, but S ! D it was not working for batteries In 1989 Eveready finally decided to try an advertising campaign that S ! D went head-to-head with its rival Duracell Duracell had developed ads showing hordes of wind-up S ! D bunnies running on its batteries Evereadys advertising agency, Chiat/Day, came up with a spoof on S ! D those bunnies, with a giant Energizer bunny breaking in on the Duracell gang, rudely banging a drum The Energizer bunny campaign went on from there, with a unique series of fake S ! D advertisements that would be interrupted by the banging rabbit The commercials began as what S ! D looked like straightforward ads for coffee or nasal spray, and suddenly the rabbit burst onto the screen, with the slogan Still going The campaign was extremely innovative, though it did not S ! D S ! D S ! D S ! D immediately affect Evereadys sales It engendered its own spoofs, too S ! D S ! D Ernst & Young The roots of Ernst & Young can be traced back well over 100 years to the formation of the auditing business and the development of generally accepted accounting practices, rules that became increasingly necessary with the rise of the multinational corporation and the intrusion of complicated taxes into private business Prior to the 1989 merger, each of the two firms had enjoyed rich S ! D histories Both rose from very small beginnings by capitalizing on the enterprise pote ntial of S ! D accounting in its early years Pioneer Arthur Young founded and headed the original Arthur Young S ! D firm back in 1895 in Kansas City after breaking from an earlier union of the firm of Stuart and Young in Chicago In 1896 Young formed the firm of Arthur Young and Company with his brother S ! D Stanley, but by 1906 Young had completely terminated his unsatisfactory partnership with Stuart S ! D Arthur Young and Company flourished for many years, slowly developing its reputation as "old reliable" for auditing, adding more and more partners throughout the years S ! D The other half of the marriage, Ernst & Whinney, can be traced back to 1906, when Ernst & ErnstBiZdoM : Companies History Part 1 | was founded in Cleveland, Ohio, as a partnership between Alwin C Ernst and his older brother, S ! D Theodore C Ernst The firm took on its first additional partners in 1910 and from there the family S ! D S ! D tree expanded by immense and unforeseen proportions By 1913, when income taxes began to be S ! D levied in the United States, the need for accountants swelled dramatically By the 1980s the firm had S ! D become one of the largest members of the Big Eight In one of its more publicized actions, Ernst & S ! D Whinneys audit paved the way for the 1979 government bailout of the Chrysler Corporation S ! D 1989 Merger In general, both firms thought that a merger represented a comparative advantage for each S ! D Although both had heavy hitters for clients, Arthur Youngs clients were mostly investment banks and high-tech firms on the East and West Coasts, while Ernst & Whinney had more healthcare and Feedback at bizdomonline@gmail.com 187

manufacturing industry clients concentrated in the Midwest and South Internationally, Arthur Young S ! Dhad more clients in Europe, while Ernst & Whinney had established a presence in the Pacific Rimcountries Arthur Youngs clients included American Express, M obil, and Texas Instruments, while S ! DErnst & Whinney had BankAmerica, Time, Inc , and Eli Lilly S ! D S ! DHistorically, the accounting business has seen increasing numbers of partners concentrated in adecreasing number of firms In this respect, the birth of Ernst & Young in 1989 was the natural S ! Doutcome of the cycle of competition that breeds concentration and expansion, thus leading to furtherrounds of competition But for over half a century previous to the creation of Ernst & Young, eight S ! Dfirms had dominated the accounting business The elite group was dubbed the "Big Eight" by Fortune S ! Dmagazine S ! DFollowing two major mergers in the 1980s (the Ernst & Young deal and the merger the same yearbetween Deloitte, Haskins & Sells and Touche Ross), the Big Eight became th e Big Six All of the Big S ! DSix were private partnerships, meaning that all were owned by the firms senior executives, whichalso meant that none of the firms were required to report their profits S ! DThe Ernst & Young merger created a firm with 6,100 partner s and two chief executive officers, RayGroves from Ernst & Whinney and William Gladstone from Arthur Young The newly formed firm had S ! Dworld revenues in 1989 of $4 27 billion, and its total sales eclipsed that established by a merger in S ! D1987 of Peat Marwick and KMG Main Hurdman S ! DThe actual merger in 1989 was essentially viewed as a smart competitive move, although someobservers thought the merger might be difficult due to perceived differences in management styles,with Ernst & Whinney governed from the top and Arthur Young favoring a more decentralizedmanagement system At the time of the merger Ernst & Whinney had 1,276 partners and 14,739 S ! Dtotal personnel in 118 U S offices as well as 3,159 partners and 35,600 total personnel in 89 S ! D S ! Dcountries The smaller Arthur Young had 829 U S -based partners and 10,652 total U S personnel in S ! D S ! D S ! D S ! D S ! D93 offices; worldwide they had 2,900 partners and 33,000 total personnel in 74 countries S ! DThere was a conflict at the time of the merger over each firms "cola" clients A conflict of interest S ! Dexisted in that PepsiCo had been an Arthur Young client since 1965, while Coca -Cola had been anErnst & Whinney client since 1924 Coca-Cola forced the firm to dump PepsiCo, as Ernst & Young S ! D BiZdoM : Companies History Part 1noted that Coca-Cola had been a client for a longer time and that Cokes annual audit fee was $14million, a much higher figure than Pepsis $8 8 million audit fee S ! D S ! DExxon Mobil Corporation1870: John D Rockefeller and Henry Flagler incorporate the Standard Oil Company S!D S!D1878: Standard controls $33 million of the countrys $35 million annual refining capacity S!D1882: Rockefeller reorganizes Standard Oil into a trust, creating Standard Oil Company ofNew Jersey as one of many regional corporations controlled by the trust S!D1888: Standard founds its first foreign affiliate, Anglo-American Oil Company, Limited S!D1890: The Sherman Antitrust Act is passed, in large part, in response to Standards oil@Team BiZdoM 188

BIZDOM : COMPANIES HISTORY PART 1 monopoly S!D 1891: The trust has secured a quarter of the total oilfield production in the United States S!D The 1931 merger of Standard Oil Company of New York (Socony) and Vacuum Oil Company created Mobil Of Mobils two progenitors, Socony was the larger and more generalized oil company, while S ! D Vacuums expertise lay in the production of high -quality machine lubricants Vacuum got its start in S ! D 1866 when Matthew Ewing, a carpenter and part-time inventor in Rochester, New York, devised a new method of distilling kerosene from oil using a vacuum The process itself proved to be no great S ! D discovery, but Ewings partner, Hiram Bond Everest, who had invested $20 in seed capital in the project, noticed that its gummy residue was suitable for lubrication, and the two men took out a patent on behalf of the Vacuum Oil Company in 1866 Ewing sold his interest in Vacuum to Everest S ! D shortly thereafter The heavy Vacuum oil was soon much in demand by manufacturers of steam S ! D engines and the new internal-combustion engines In 1869 Everest patented Gargoyle 600-W Steam S ! D Cylinder Oil, which was still in use into the 1990s, and the firm co ntinued to prosper S ! D Within a decade Vacuum had expanded sufficiently to catch the eye of John D Rockefellers S ! D Standard Oil Company Beginning in 1872, Standard had bought up scores of refineries and S ! D marketing companies around the country, and in 1879 it added Vacuum Oil to its list of conquests, paying $200,000 for 75 percent of Vacuums stock By that date Standard Oil had achieved an S ! D effective monopoly on the oil business in the United States Despite its small size, Vacuum was given S ! D latitude by the Standard management, who respected its excellent products and the acumen of Hiram Everest and his son, C M Everest S ! D S ! D S ! D Regrouping Following Supreme Court Ruling in 1911 By the time of the dissolution of Standard in 1911, Socony had established its position in Europe and Africa and built a thriving business in Asia as well China became an important market for Socony S ! D S ! D Socony eventually built a network of subsidiaries from Japan to Turkey that by 1910 was handling nearly 50 percent of the kerosene sold in Asia In the United States, Soconys five refineries turned S ! D out kerosene, gasoline, and naphtha for sale in New York and New England, through jobbers and a growing number of the new roadside stores known as "gas stations " S ! D In 1911 the Supreme Court upheld a lower courts conviction of Jersey Standard for violation of the Sherman Antitrust Act and ordered the organization dissolved Each of the 34 new companies S ! D created by the order was allotted varying proportions of the three basic oil assets --crude production, refining, and marketing--but neither Socony nor Vacuum Oil ended up with any sources of crude S ! D Both companies were strong marketers and refiners, and both became occupied by the search for enough crude oil to keep their plants and salesmen busy Soconys need for its own crude supplies S ! D was greater since it produced a large volume of oil -based fuels and lubricants, whereas VacuumsBiZdoM : Companies History Part 1 | business was more limited in both volume and variety Socony set out to secure ownership of its own S ! D wells S ! D At that point in the history of U S oil production, the natural area in which to explore was Texas, S ! D S ! D Louisiana, and Oklahoma In 1918 Socony bought 45 percent of Magnolia Petroleum Company, S ! D which owned wells, pipelines, and a refinery in Beaumont, Texas, and did most of its m arketing in Texas and the Southwest After buying the rest of Magnolia in 1925, Socony purchased General S ! D Petroleum Corporation of California to help supply its large market in Asia Then it entered the S ! D Midwest for the first time with a 1930 purchase of Whi te Eagle Oil & Refining Company, with gas stations in 11 states Socony now needed even more crude oil to supply these additional market S ! D outlets, and like most of the other big international oil concerns, Socony looked to the Middle East S ! D Feedback at bizdomonline@gmail.com 189

World War I had demonstrated the crucial role of oil in modern warfare and prompted the U S S ! D S ! Dgovernment to encourage U S participation in the newly formed Turkish Petroleum Company, S ! D S ! Doperating in present-day Iraq A consortium of U S oil companies was sold 25 percent of Turkish S ! D S ! D S ! DPetroleum By the early 1930s only Jersey Standard and Socony were left in the partnership, with S ! Deach eventually holding 12 percent Oil was first struck by the company, renamed Iraq Petroleum, in S ! D1928, and by 1934 the partners had built a pipeline across the Levant to Haifa, Palestine From S ! DHaifa, Socony could ship oil to its many European subsidiaries S ! DIn the meantime, Vacuum Oil had made a number of important domestic acquisitions and hadstrengthened its already far-flung network of foreign subsidiaries, but continued to share Soconyschronic shortage of crude The two companies, similar in profile and complementary in product mix, S ! Djoined forces in 1931 when Socony purchased the assets of Vacuum and changed its name toSocony-Vacuum Corporation The union was the first alliance between members of the former Jersey S ! DStandard conglomerate and created a company with formidable refining and marketing strengthsboth at home and abroad To supply its joint Far East markets more efficiently, in 1933 Soc ony- S ! DVacuum (SV) and Jersey Standard created another venture called Standard -Vacuum Oil Company(Stan-Vac) Stan-Vac would ship oil from Jersey Standards large Indonesian holdings to SVs extensive S ! Dmarketing outlets from Japan to East Africa By 1941 it was contributing 35 percent of SVs S ! Dcorporate earnings S ! DThe Oil Crisis of the 1970sDuring the 1960s Mobil Oils 9 percent annual increase in net income was the best of all major oilcompanies, and it continued as a major supplier of natural gas and oil to the worlds two fastest-growing economies, West Germany and Japan In 1973, however, OPEC placed an embargo on oil S ! Dshipments to the United States for six months and began gradual annexation of U S -owned oil S ! D S ! Dproperties The price of oil quadrupled overnight, and a new era of energy awareness began, as the S ! Dinternational oil companies lost the comfortable positions they had held in the Middle East since the1920s On the other hand, the immediate result of OPECs move was to boost sales and profits at all S ! Dthe oil majors Mobil Oils sales nearly tripled between 1973 and 1977 to $32 billion, and 1974 S ! Dprofits hit record highs, prompting a barrage of congressional and media criticism that was answeredby Mobil Oils own public relations department Mobil Oil quickly became famous as the most S ! Doutspoken defender of the oil industrys right to conduct its business as it saw fit S ! D BiZdoM : Companies History Part 1The Standard Oil Monopoly: 1870 -92The early years of the oil business were marked by tremendous swings in the production and price ofboth crude and refined oil With a flood of newcomers entering the field every day, size and S ! Defficiency already had become critically important for survival As the biggest refiner, Rockefeller was S ! Din a better position than anyone to weather the price storms Rockefeller and Henry Flagler, with S ! Dwhom Rockefeller enjoyed a long and harmonious business relationship, decided to incorporate theirfirm to raise the capital needed to enlarge the company further On January 10, 1870, the Standard S ! DOil Company was formed, with the two Rockefellers, Flagler, and Andrews owning the great majorityof stock, valued at $1 million The new company was not only capable of refining approximately 10 S ! Dpercent of the entire countrys oil, it also owned a barrel -making plant, dock facilities, a fleet of@Team BiZdoM 190

BIZDOM : COMPANIES HISTORY PART 1 railroad tank cars, New York warehouses, and forest land for the cutting of lumber used to produce barrel staves At a time when the term was yet unknown, Standard Oil had become a vertically S ! D integrated company S ! D One of the great advantages of Standard Oils size was the leverage it gave the company in railroad negotiations Most of the oil refined at Standard made its way to New York and the Eastern S ! D Seaboard Because of Standards great volume--60 carloads a day by 1869--it was able to win S ! D lucrative rebates from the warring railroads In 1871 the various railroads concocted a plan whereby S ! D the nations oil refiners and railroads would agree to set and maintain prohibitively high freight rates while awarding large rebates and other special benefits to those refiners who were part of the scheme The railroads would avoid disastrous price wars while the large refiners forced out of S ! D business those smaller companies who refused to join the cartel, known as the South Improvement Company S ! D The plan was denounced immediately by Oil Region producers and many independent refiners, with near-riots breaking out in the oilfields After a bitter war of words and a flood of press coverage, the S ! D oil refiners and the railroads abandoned their plan and anno unced the adoption of public, inflexible transport rates In the meantime, however, Rockefeller and Flagler were already far advanced on a S ! D plan to combat the problems of excess capacity and dropping prices in the oil industry To S ! D Rockefeller the remedy was obvious, though unprecedented: the eventual unification of all oil refiners in the United States into a single company Rockefeller approached the Cleveland refiners and a S ! D number of important firms in New York and elsewhere with an offer of Standard Oil s tock or cash in exchange for their often-ailing plants By the end of 1872, all 34 refiners in the area had agreed to S ! D sell--some freely and for profit, and some, competitors alleged, under coercion Because of Standards S ! D great size and the industrys overbuilt capacity, Rockefeller and Flagler were in a position to make their competitors irresistible offers All indications are that Standard regularly paid top dollar for S ! D viable companies S ! D By 1873 Standard Oil was refining more oil--10,000 barrels per day--than any other region of the country, employing 1,600 workers, and netting around $500,000 per year With great confidence, S ! D Rockefeller proceeded to duplicate his Cleveland success throughout the rest of the country By the S ! D end of 1874 he had absorbed the next three largest refiners in the nation, located in New York, Philadelphia, and Pittsburgh Rockefeller also began moving into the field of distribution with the S ! D purchase of several of the new pipelines then being laid across the country With each new S ! D acquisition it became more difficult for Rockefellers next target to refuse his cash Standard S ! D interests rapidly grew so large that the threat of monopoly was clear The years 1875 to 1879 saw S ! D Rockefeller push through his plan to its logical conclusion In 1878, a mere six years after beginning S ! D its annexation campaign, Standard Oil controlled $33 million of the countrys $35 million annualBiZdoM : Companies History Part 1 | refining capacity, as well as a significant proportion of the nations pipelines and oil tankers At the S ! D age of 39, Rockefeller was one of the five wealthiest men in the country S ! D Standards involvement in the aborted South Improvement Company, however, had earned it lasting criticism The companys subsequent absorption of the refining industry did not mend its image S ! D among the few remaining independents and the mass of oil producers who found in Standard a natural target for their wrath when the price of crude dropped precipitously in the late 1870s S ! D Although the causes of producers tailing fortunes are unclear, it is evi dent that given Standards extraordinary position in the oil industry it was fated to become the target of dissatisfaction In 1879 S ! D nine Standard Oil officials were indicted by a Pennsylvania grand jury for violating state antimonopoly Feedback at bizdomonline@gmail.com 191

laws Although the case was not pursued, it indicated the depth of feeling against Standard Oil, and S ! Dwas only the first in a long line of legal battles waged to curb the companys power S ! DIn 1882 Rockefeller and his associates reorganized their dominions, creating the first " trust" in U S S ! D S ! Dbusiness history This move overcame state laws restricting the activity of a corporation to its home S ! Dstate Henceforth the Standard Oil Trust, domiciled in New York City, held "in trust" all assets of the S ! Dvarious Standard Oil companies Of the Standard Oil Trusts nine trustees, John D Rockefeller held S ! D S ! Dthe largest number of shares Together the trusts 30 companies controlled 80 percent of the S ! Drefineries and 90 percent of the oil pipelines in the United States, constituting the leading indu strialorganization in the world The trusts first years combined net earnings were $11 2 million, of which S ! D S ! Dsome $7 million was immediately plowed back into the companies for expansion Almost lost in the S ! Dflurry of big numbers was the 1882 creation of Standard Oil Company of New Jersey, one of themany regional corporations created to handle the trusts activities in surrounding states Barely worth S ! Dmentioning at the time, Standard Oil Company of New Jersey, or "Jersey" as it came to be called,would soon become the dominant Standard company and, much later, rename itself Exxon S ! DThe 1880s were a period of exponential growth for Standard The trust not only maintained its lock S ! Don refining and distribution but also seriously entered the field of production By 1891 the trust had S ! Dsecured a quarter of the countrys total output, most of it in the new regions of Indiana and Illinois S ! DStandards overseas business also was expanding rapidly, and in 1888 it founded its first foreignaffiliate, London-based Anglo-American Oil Company, Limited (later known as Esso PetroleumCompany, Limited) The overseas trade in kerosene was especially important to Jersey, which derived S ! Das much as three-fourths of its sales from the export trade Jerseys Bayonne, New Jersey refinery S ! Dwas soon the third largest in the Standard family, putting out 10,000 to 12,000 barrels per day by1886 In addition to producing and refining capacity, Standard also was extending gradually its S ! Ddistribution system from pipelines and bulk wholesalers to ward the retailer and eventual end user ofkerosene, the private consumer S ! DJersey at Head of Standard Oil Empire: 1892-1911The 1890 Sherman Antitrust Act, passed in large part in response to Standards oil monopoly, laidthe groundwork for a second major legal assault against the company, an 1892 Ohio Supreme Courtorder forbidding the trust to operate Standard of Ohio As a result, the trust was promptly dissolved, S ! Dbut taking advantage of newly liberalized state law in New Jersey, the Standard directors made BiZdoM : Companies History Part 1Jersey the main vessel of their holdings Standard Oil Company of New Jersey became Standard Oil S ! DCompany (New Jersey) at this time The new Standard Oil structure now consisted of only 20 much - S ! Denlarged companies, but effective control of the interest s remained in the same few hands as before S ! DJersey added a number of important manufacturing plants to its already impressive refining capacityand was the leading Standard unit It was not until 1899, however, that Jersey became the sole S ! Dholding company for all of the Standard interests At that time the entire organizations assets were S ! Dvalued at about $300 million and it employed 35,000 people John D Rockefeller continued as S ! D S ! Dnominal president, but the most powerful active member of Jerseys board was p robably John D S ! DArchbold S ! D@Team BiZdoM 192

BIZDOM : COMPANIES HISTORY PART 1 Rockefeller had retired from daily participation in Standard Oil in 1896 at the age of 56 Once S ! D Standards consolidation was complete Rockefeller spent his time reversing the process of accumulation, seeing to it that his immense fortune--estimated at $900 million in 1913--was redistributed as efficiently as it had been made S ! D The general public was only dimly aware of Rockefellers philanthropy, however More obvious were S ! D the frankly monopolistic policies of the company he had bu ilt With its immense size and complete S ! D vertical integration, Standard Oil piled up huge profits ($830 million in the 12 years from 1899 to 1911) In relative terms, however, its domination of the U S industry was steadily decreasing By S ! D S ! D S ! D S ! D 1911 its percentage of total refining was down to 66 percent from the 90 percent of a generation before, but in absolute terms Standard Oil had grown to monstrous proportions Therefore, it was not S ! D surprising that in 1905 a U S congressman from Kansas launched an investigation of Standard Oils S ! D S ! D role in the falling price of crude in his state The commissioner of the Bureau of Corporations, James S ! D R Garfield, decided to widen the investigation into a study of the national oil industry --in effect, S ! D Standard Oil S ! D Independent Growth into a "Major": 1911 -72 Standard Oil Company (New Jersey) retained an equal number of smaller companies spread around the United States and overseas, representing $285 million of the former Jerseys net value of $600 million Notable among the remaining holdings were a group of large refineries, four medium -sized S ! D producing companies, and extensive foreign marketing affiliates Absent were the pipelines needed to S ! D move oil from well to refinery, much of the former tanker fleet, and access to a number of important foreign markets, including Great Britain and the Far East S ! D In marketing, Jerseys income showed a similar preponderance of foreign sales Jerseys domestic S ! D market had been limited by the dissolution decree to a handful of mid -Atlantic states, whereas the companys overseas affiliates were well entrenched and highly profitable Jerseys Canadian affiliate, S ! D Imperial Oil Limited, had a monopolistic hold on that countrys market, while in Latin America and the Caribbean the West India Oil Company performed superbly during the second and third decades of the 20th century Jersey also had incorporated eight major marketing companies in Europe by S ! D 1927, and these, too, sold a significant amount of refined products --most of them under the Esso brand name introduced the previous year (the name was derived from the initials for Standard Oil) S ! D Esso became Jerseys best known and most widely used retail name both at home and abroad S ! D Jerseys mix of refined products changed considerably over the years As the use of kerosene for S ! D illumination gave way to electricity and the automobile continued to grow in popularity, Jerseys sales reflected a shift away from kerosene and toward gasoline Even as late as 1950, however, gasolineBiZdoM : Companies History Part 1 | S ! D had not yet become the leading seller among Jersey products That honor went to the group of S ! D residual fuel oils used as a substitute for coal to power ships and industrial plants Distillates used S ! D for home heating and diesel engines were also strong performers Even in 1991, when Exxon S ! D distributed its gasoline through a network of 12,000 U S and 26,000 international service stations, S ! D S ! D the earnings of all marketing and refining activities were barely one -third of those derived from the production of crude In 1950 that proportion was about the same, indicating that regardless of the S ! D end products into which oil was refined, it was the production of crude that yielded the big profits S ! D Exxon, Oil Shocks, and Diversification: 1972-89 Feedback at bizdomonline@gmail.com 193

Despite the growing strength of newcomers to the internatio nal market, such as Getty and Conoco,the big companies continued to exercise decisive control over the world oil supply and thus over thedestinies of the Middle East producing countries Growing nationalism and an increased awareness of S ! Dthe extraordinary power of the large oil companies led to the 1960 formation of the Organization ofPetroleum Exporting Countries (OPEC) Later, a series of increasingly bitter confrontations erupted S ! Dbetween countries and companies concerned about control over the oil upon which the world hadcome to depend The growing power of OPEC and the concomitant nationalization of oil assets by S ! Dvarious producing countries prompted Jersey to seek alternative sources of crude Exploration S ! Dresulted in discoveries in Alaskas Prudhoe Bay and the North Sea in the late 1960s The Middle S ! DEastern sources remained paramount, however, and when OPEC cut off oil supplies to the UnitedStates in 1973--in response to U S sponsorship of Israel--the resulting 400 percent price increase S ! D S ! Dinduced a prolonged recession and permanently changed the industrial worlds attitude to oil Control S ! Dof oil was, in large part, taken out of the hands of the oil companies, who began exploring newsources of energy and business opportunities in other fields S ! DFor Standard Oil Company (New Jersey), which had changed its name to Exxon in 1972, the oilembargo had several major effects Most obviously it increased corporate sales; the expensive oil S ! Dallowed Exxon to double its 1972 revenue of $20 billion in only two years and then pushed thatfigure over the $100 billion mark by 1980 After a year of windfall profits made possible by the sale S ! Dof inventoried oil bought at much lower prices, Exxon was able to make use of its extensive NorthSea and Alaskan holdings to keep profits at a steady level The company had suffered a strong blow S ! Dto its confidence, however, and soon was investigating a number of diversification measures thateventually included office equipment, a purchase of Reliance Electric Company (the fifth large stholdings of coal in the United States), and an early 1980s venture into shale oil With the partial S ! Dexception of coal, all of these were expensive failures, costing Exxon approximately $6 billion to $7billion S ! DThe Exxon Valdez: 1989-98In 1989 Exxon was no longer the worlds largest company, and soon it would not even be the largestoil group (Royal Dutch/Shell would take over that position in 1990), but with the help of the March24, 1989 Exxon Valdez disaster the company heightened its notoriety The crash of the Exxon S ! DValdez in Prince William Sound off the port of Valdez, Alaska, released about 260,000 barrels, or11 2 million gallons, of crude oil The disaster cost Exxon $1 7 billion in 1989 alone, and the BiZdoM : Companies History Part 1 S ! D S ! D S ! Dcompany and its subsidiaries were faced with more than 170 civil and criminal lawsuits brought bystate and federal governments and individuals S ! DBy late 1991 Exxon had paid $2 2 billion to clean up Prince William Sound and had reached a S ! Dtentative settlement of civil and criminal charges that lev ied a $125 million criminal fine against theoil conglomerate Fully $100 million of the fine was forgiven and the remaining amount was split S ! Dbetween the North American Wetlands Conservation Fund (which received $12 million) and the U S S ! D S ! DTreasury (which received $13 million) Exxon and a subsidiary, Exxon Shipping Co , also were S ! D S ! Drequired to pay an additional $1 billion to restore the spill area S ! D@Team BiZdoM 194

BIZDOM : COMPANIES HISTORY PART 1 Although the Valdez disaster was a costly public relations nightmare --a nightmare made worse by the companys slow response to the disaster and by CEO Lawrence G Rawls failure to visit the site in S ! D person--Exxons financial performance actually improved in the opening years of the last decade in the 20th century The company enjoyed record profits in 1991, netting $5 6 billion and earning a S ! D S ! D special place in the Fortune 500 Of the annual lists top ten companies, Exxon was the only one to S ! D post a profit increase over 1990 Business Weeks ranking of companies according to market value S ! D also found Exxon at the top of the list S ! D The companys performance was especially dramatic when compared with the rest of the fuel industry: As a group the 44 fuel companies covered by Business Weeks survey lost $35 billion in value, or 11 percent, in 1991 That year, Exxon also scrambled to the top of the profits heap, S ! D according to Forbes magazine With a profit increase of 12 percent over 1990, Exxons $5 6 billion S ! D S ! D in net income enabled the company to unseat IBM as the United States most profitable company At S ! D 16 5 percent, Exxons return on equity was also higher than any other oil company The company S ! D S ! D also significantly boosted the value of its stock through its long -term and massive stock buyback program, through which it spent about $15 5 billion to repurchase 518 million shares--or 30 percent S ! D of its outstanding shares--between 1983 and 1991 S ! D At the end of 1993 Lee R Raymond took over as CEO from the retiring Rawl Raymond continued S ! D S ! D Exxons focus on cost-cutting, with the workforce falling to 79,000 employees by 1996, the lowest level since the breakup of Standard Oil in 1911 Other savings were wrung out by reengineering S ! D production, transportation, and marketing processes Over a five-year period ending in 1996, Exxon S ! D had managed to reduce its operating costs by $1 3 billion annually The result was increasing levels S ! D S ! D of profits In 1996 the company reported net income of $7 51 billion, more than any other company S ! D S ! D on the Fortune 500 The following year it made $8 46 billion on revenues of $120 28 billion, a 7 S ! D S ! D S ! D percent profit margin The huge profits enabled Exxon in the middle to late 1990s to take some S ! D gambles, and it risked tens of billion of dollars on massive new oil and gas fields in Russia, Indonesia, and Africa In addition, Exxon and Royal Dutch/Shell joined forces in a world wide petroleum additives S ! D joint venture in 1996 S ! D Fannie Mae 1938: The National Mortgage Association of Washington is chartered to boost nations depressed housing market S!D 1949: The Association is authorized to begin buying and selling loans guaranteed by the Veterans Administration S!D 1954: The Association is rechartered as a mixed ownership corporationBiZdoM : Companies History Part 1 | S!D 1968: The Association is divided in two: Fannie Mae continues in the secondary market sector as a private, shareholder-owned entity, while the newly created Government National Mortgage Association, or Ginnie Mae, guarantees FHA and VA mortgages S!D 1972: Fannie Mae buys its first conventional mortgage--those not backed by FHA or VA S!D 1983: Fannie Mae begins purchasing conventional multifamily housing loans S!D 1988: Fannie Mae stock is added to the S&P 500 S!D 1996: Fannie Mae marks its tenth consecutive year of record earnings S!D 1999: Franklin D Raines takes over the leadership of Fannie Mae; the mission statement is S!D changed S!D Fannie Mae was originally designed to help relieve the nations housing problems during the Depression Title III of the Federal Housing Act of 1934 provided for the incorporation of private S ! D Feedback at bizdomonline@gmail.com 195

national mortgage associations to create a national secondary mortgage market But in February S ! D1938, since no private associations had yet formed, the Federal Housing Administration charteredthe National Mortgage Association of Washington to buy and sell mortgages Its name was changed S ! Dthree months later to the Federal National Mortgage Association, or FNMA, and it has been knownas Fannie Mae ever since S ! DThe federal government took an interest in facilitating home mortgages as a way to invigorate theresidential construction industry as well as to provide adequate housing for its citizens The S ! DDepression had taken a heavy toll on private lending institutions Fannie Maes primary purpose was S ! Dto establish a secondary mortgage market to rejuvenate original lenders such as mortgage banks,savings and loan associations, and commercial banks by stimulatin g enough cash flow to allow themto make new loans Fannie Mae bought mortgages insured by the Federal Housing Administration S ! D(FHA) from these private lenders, and either kept them for its own portfolio or sold them to privateinvestors S ! DThe secondary market Fannie Mae created also made private lenders confident about making FHA -insured mortgages, which some had been reluctant to do Once assured that they could easily turn S ! Dthese mortgages into cash if they needed to, lenders were more inclined to extend m ortgage credit S ! DIn addition, the secondary mortgage market helped smooth out discrepancies between capital -richand capital-poor regions of the country Fannie Mae could buy mortgages from the South or West S ! Dand sell them to investors in the capital-rich East In this way a Boston banker could invest in S ! DArizona mortgages while a local lender in Arizona was no longer limited in the number of loans hecould make by the cash deposits of his customers Under Sam Husbands, who presided over the S ! Dassociation from 1938 to 1948, Fannie Mae bought 66,947 FHA-insured mortgages and sold49,048 S ! DIn 1949, Fannie Mae expanded its activities to include buying and selling loans guaranteed by theVeterans Administration (VA) As veterans returned from the war and the great American baby boom S ! Dgot underway, Fannie Mae was busier than ever The association bought 133,032 mortgages in 1950 S ! Dcompared with 6,734 in 1948 Some critics viewed Fannie Maes growth with alarm, however, S ! Dcharging that the company had brought government too far into the private sector S ! DTransforming Fannie Mae: 1950s-60s BiZdoM : Companies History Part 1In 1954, Congress responded with the Federal National Mortgage Association Charter Act, whichturned Fannie Mae into a mixed ownership corporation The Treasury of the United States was S ! Dissued nonvoting preferred stock, and nonvoting common stock was sold to mortgage lenders, whowere now required to own stock in order to sell mortgages to Fannie Mae Fannie Mae was made S ! Dresponsible for special assistance for certain mortgages when the presid ent or Congress requested,and also for the management of mortgages acquired before 1954 S ! DThroughout the 1950s and early 1960s Fannie Mae continued to buy and sell FHA and VAmortgages But in 1966, primary mortgage lenders found themselves temporarily wi thout the liquid S ! Dresources to make new mortgages Fannie Mae, until then a relatively minor player in the secondary S ! Dmarket because it was restricted to government-insured (FHA and VA) mortgages, became the largest@Team BiZdoM 196

BIZDOM : COMPANIES HISTORY PART 1 buyer in the market The cost of borrowing enough money to purchase all the mortgages was high S ! D enough that Fannie Maes profits dropped significantly that year Lending eased at the end of 1966, S ! D relieving the pressure on Fannie Mae But when mortgage funds became scarce again a year later, it S ! D became clear that major changes were necessary to ensure Fannie Maes continued prosperity S ! D In 1968, Fannie Mae began the transition from mixed ownership to a private corporation The S ! D Housing and Urban Development Act of 1968 split the old Fannie Mae into two separate corporations: the new Fannie Mae conducted secondary mortgage market activities just as the old one had done, while a new company called the Government National Mortgage Association (GNMA), or Ginnie Mae, assumed the "special assistance" and "man agement" functions of the old Fannie Mae, guaranteeing FHA and VA mortgages The Treasury Departments preferred stock was retired S ! D and a schedule was set for nonvoting common shares to become voting ones The Department of S ! D Housing and Urban Development (HUD) maintained "regulatory power" over the new Fannie Mae S ! D Any stock, obligation, or other security had to be approved by the Secretary of HUD The secretary S ! D could also require that a reasonable number of Fannie Mae purchases were in step with HUDs goal of assuring quality housing for moderate and low-income families S ! D FedEx Corporation FedEx was founded as Federal Express Corporation in 1971, by 28 -year-old Memphis, Tennessee, native Frederick W Smith Smith, a former Marine pilot, originally outlined his idea for an overnight S ! D S ! D delivery service in a term paper he wrote for a Yale University economics class He felt that air S ! D freight had different requirements than air passenger service and that a company specializing in air freight rather than making it an add-on to passenger service would find a lucrative business niche S ! D Speed was more important than cost, in Smiths view, and access to smaller cities was essential His S ! D strategies included shipping all packages through a single hub and building a private fl eet of aircraft S ! D Company-owned planes would free the service from commercial-airline schedules and shipping regulations, while a single hub would permit the tight control that got packages to their destinations overnight In making his dream a reality, Smith selected Memphis as his hub: it was centrally located S ! D and despite inclement weather its modern airport rarely closed S ! D Smiths idea was costly indeed; it required creating an entire system before the companys first day of business FedEx added to these start-up costs by beginning expensive advertising and direct -mail S ! D campaigns in 1975 The company lost $29 million in its first 26 months of operation: in 1975 alone S ! D it gained $43 5 million in sales against an $11 5 million loss Smiths investors considered removing S ! D S ! D S ! D him from the helm of the fledgling company, but company president Arthur Bass backed the young founder Bass improved delivery schedules and FedExs volume climbed to the point where it was S ! DBiZdoM : Companies History Part 1 | profitable: By late 1976 the company was carrying an a verage of 19,000 packages a night, and by years end it was $3 6 million in the black S ! D S ! D In 1977 company profits hit $8 million on sales of $110 million The company had 31,000 regular S ! D customers, including such giants as IBM and the U S Air Force, which used it to ship spare parts It S ! D S ! D S ! D also shipped blood, organs for transplant, drugs, and other items requiring swift transport FedEx S ! D serviced 75 airports and 130 cities While the major airlines gave the company stiff competition on S ! D heavily traveled passenger routes, there was virtually no competition on routes between smaller cities Its principal competitor, Emery Air Freight, used commercial airlines to ship packages, giving S ! D FedEx an important time advantage S ! D Feedback at bizdomonline@gmail.com 197

Fiat SpA1899: Fabbrica Italiana Automobili Torino (FIAT) is founded in Turin, Italy, by GiovanniAgnelli and a few other Turin businesspeople S!D1906: Fiat is incorporated as Societa Anonima Fabbrica Italiana di Automobili S!DFiats Turin Becomes "Italys Little Detroit"Fiat was founded in 1899 by Giovanni Agnelli, an ex-cavalry officer, and a few other Turinbusinesspeople The city of Turin, often known as "Italys Little Detroit," was developed with Fiat S ! Dmoney; in the 1990s, half of its population, either directly or indirectly, remained dependent on Fiatfor its livelihood S ! DThe company (Fabbrica Italiana Automobili Torino) began manufacturing automobiles and engineparts for the automotive industry early in the 20th century With the advent of World War I, S ! Dhowever, Fiat significantly expanded its production line, and as the years passed, the companybecame a conglomeration of various manufacturing enterprises By the early postwar years, Fiat was S ! Dmanufacturing so many products that Giovanni Agnelli felt it was time to improve centraladministration S ! DTo help him in his reorganization efforts, Giovanni Agnelli hired Vittorio Valletta, a universityprofessor and former consulting engineer, in 1921 Their aim was to control all of the manufacturing S ! Dprocesses as completely as possible, thus reducing th eir dependence on foreign suppliers Soon the S ! Dcompany became more diverse by pouring its own steel and producing its own plastics and paints In S ! Da further reorganization, Agnelli formed a holding company, the IFI (Industrial Fiduciary Institute), in1927 In the 1990s, IFI remained one of the wealthiest and most influential holding companies in S ! DEurope It also remained a closed company, owned and operated by Giovanni Agnellis heirs S ! D S ! DFiats Early Automobiles --In its first two decades, Fiat produced only two types of automobile: thebasic, limited options model and the deluxe model The company had little incentive to offer other S ! Dmodels since it was protected by the Italian governments high -tariff policy (known as "keptcapitalism"); as a result, imported cars were far beyond the reach of the average Italian Indeed, S ! D BiZdoM : Companies History Part 1more than 80 percent of all the cars sold in Italy were Fiats, and much of the remaining 20 percentof the countrys car sales consisted of expensive Italian -made Lancias and Alfa Romeos S ! DFinally sensitive to Italian complaints that Fiats "cheap" car was too expensive, the companydeveloped the Topolino, or "Little Mouse," a four -cylinder, 16-horsepower two-seater that averaged47 miles per gallon It was an immediate success and accounted for 60 percent of the Fiats sold in S ! DItaly up until the mid-1950s S ! DFiats Plants Targeted by Allied Forces --Fiat flourished in World War II as it had in World War I, andprofits increased significantly under Benito Mussolinis much heralded modernization pro gram But S ! D@Team BiZdoM 198

BIZDOM : COMPANIES HISTORY PART 1 the companys production of planes, cars, trucks, and armored vehicles for the European and African campaigns of the Axis forces made its plants prime targets for Allied bombing raids S ! D Fiat faced the postwar era with war-torn plants and antiquated production facilities, and at the height of its disarray, in 1945, Giovanni Agnelli died Valletta was named president and managing S ! D director and immediately set about reviving the companys fortunes, aided by Agnellis grandson, Giovanni Agnelli II, who became a senior vice-president S ! D Once the Allied effort to rebuild postwar Europe was under way, Vittorio Valletta applied to the U S S ! D S ! D government for a loan to renovate and modernize company facilities He reasoned that Fiat was S ! D crucial to Italys recovery and should therefore be entitled to special help Well aware of the political S ! D benefits of a strong Italy, the Americans granted Fiat a US$10 million, six -month revolving loan S ! D Other loans soon followed, and the company was back in business, gearing up fo r full production ahead of most of its West European competitors By 1948, Fiats holdings represented 6 percent of S ! D Italys industrial capital S ! D But fewer people were able to buy cars than before the war, and Fiat, like other car manufacturers, felt the effects of a smaller market In response, to reduce its production costs substantially, Fiat S ! D built a plant for its 600 and 1300 models in Yugoslavia that was able to produce about 40,000 automobiles yearly Other foreign expansion followed rapidly Additionally, the company managed to S ! D S ! D secure a lucrative manufacturing contract from NATO S ! D Fiats foreign forays were a mixed blessing; its Italian workers began to fear for their jobs and worker agitation became a severe problem On a few occasions Vittorio Valletta was held prisoner in S ! D Communist-led worker uprisings in Turin The political situation did not cease until the mid-1950s S ! D when the U S government tied an anti-communist clause to its US$50 million offshore procurement S ! D S ! D contracts with Fiat This resulted in the firing, relocation, and political reeducation of many Fiat S ! D employees, as well as improvements in the companys already elaborate (by U S standards) social S ! D S ! D welfare program The Italian workers formed three unions, the largest of which cooperated clos ely S ! D with company management S ! D Vittorio Valletta spent US$800 million in expansion and modernization in the 15 years following World War II and built the most impressive steelworks in Italy By 1959, Fiat sales reached US$644 S ! D million, representing one-third of its countrys mechanical production and one-tenth of its total industrial output The price of Fiats stock quintupled between 1958 and 1960; even so, Fiat did not S ! D reduce the relative price of its cars S ! D Fiat Joins EEC -- Still running the company in 1960 at the age of 76, Vittorio Valletta was a keenBiZdoM : Companies History Part 1 | supporter of Italys membership in the European Economic Community (EEC) He was sure that S ! D Italian companies were strong enough to survive direct competition from the other five members Fiat S ! D itself had the advantage of a highly trained staff, the swiftest production lines in Europe, and listed assets of US$1 25 billion But Italys organization of manufacturers, Confindustria, opposed EEC S ! D S ! D membership, believing that France and Germany would quickly dominate the market Nevertheless, S ! D by the end of the first year of membership, Italian companies made 283 deals with companies in other EEC countries; the only deal involving the giant Fiat was a sales arrangement with the French automaker Simca S ! D Fiat Acquires Maserati - In 1989, Fiat acquired part of another luxury car manufacturer, paying US$120 million for a 49 percent interest in Maserati SpA, Feedback at bizdomonline@gmail.com 199

Ford Motor Company1903: Henry Ford sets up shop in a converted wagon factory S!D1908: Fords Model T is introduced S!D1922: Lincoln Motor Company is acquired S!D1945: Henry Ford II is appointed company president S!D1963: Ford Mustang is released S!D1985: Ford Taurus is introduced S!DHenry Ford, the founder of the Ford Motor Company, was born on a farm near Dearborn, Michigan ,in 1863 He had a talent for engineering, which he pursued as a hobby from boyhood, but it was not S ! Duntil 1890 that he commenced his engineering career as an employee of the Detroit EdisonCompany In his spare time, Ford constructed experimental gasoline engines and in 1892 completed S ! Dhis first gasoline buggy Dissatisfied with the buggys weight, he sold it in 1896 to help fund the S ! Dconstruction of a new car Fords superiors at the electric company felt his hobby distracted him from S ! Dhis regular occupation and, despite his promotion to chief engineer, he was forced to quit in 1899 S ! DShortly afterwards, with financial backing from private investors, Ford established the DetroitAutomobile Company He later withdrew from the venture after a disagreement with business S ! Dassociates over the numbers and prices of cars to be produced Ford advocated a business strategy S ! Dwhich combined a lower profit margin on each car with greater production volumes In this way, he S ! Dhoped to gain a larger market share and maintain profitability S ! DIndependently in a small shed in Detroit, Henry Ford developed two four -cylinder, 80-horsepowerrace cars, called the 999 and the Arrow These cars won several races and helped to create a new S ! Dmarket for Ford automobiles With $28,000 of capital raised from friends and neighbors, Henry Ford S ! Destablished a new shop on June 16, 1903 In this facility, a converted wagon factory on Mack Avenue S ! Din Detroit, the Ford Motor Company began production of a two -cylinder, eight-horsepower designcalled the Model A The company produced 1,708 of these models in the first year of operation S ! D S ! DThe Ford Motor Company was sued by the Licensed Association of Automobile Manufacturers, anindustrial syndicate which held patent rights for road locomotives with interna l combustion engines S ! DFord responded by taking the matter to the courts, arguing that the patent, granted to George B S ! DSelden in 1895, was invalid During the long process of adjudication, Ford continued to manufacture S ! D BiZdoM : Companies History Part 1cars and relocated to a larger plant on Piquette and Beaubien Streets A Canadian plant was S ! Destablished in Walkerville, Ontario, on August 17, 1904 S ! DHenry Ford and his engineers designed several automobiles, each one designated by a letter of thealphabet; these included the small, four-cylinder Model N (which sold for $500), and the moreluxurious six-cylinder Model K (which sold poorly for $2,500) The failure of the Model K, coupled S ! Dwith Henry Fords persistence in developing inexpensive cars for mass production, caused a disputebetween Ford and his associate Alexander Malcolmson The latter, who helped to establish the S ! Dcompany in 1903, resigned and his share of the company was acquired by Henry Ford Fords S ! Dholdings then amounted to 58 5 percent In a further consolidation of his control, Ford replaced John S ! D S ! DS Gray, a Detroit banker, as president of the company in 1906 S ! D S ! D@Team BiZdoM 200

BIZDOM : COMPANIES HISTORY PART 1 In October 1908, despite the continuing litigation with the Selden syndicate, Ford introduced the durable and practical Model T Demand for this car was so great that Ford was forced to enlarge its S ! D production facilities Over 10,000 Model Ts were produced in 1909 Able to vote down business S ! D S ! D associates who favored more conventional methods of production, Henry Ford applied his assembly line concept of manufacturing to the Model T S ! D In developing the assembly line, Ford noted that the average worker performed several tasks in the production of each component, and used a variety of tools in the process He improved efficiency by S ! D having each worker specialize in one task with one tool The component on which the employee S ! D worked was conveyed to him on a moving belt, and after allowing a set time for the task to be performed, the component was moved on to the next operation Slower workers thus needed to S ! D increase their work rate in order to maintain production at the rate determined by the speed of the belts S ! D Fords battle with the Selden group led to a decision by the Supreme Court in 1911, eight years after the initial suit The Court ruled that the Selden patent was invalid The decision freed many S ! D S ! D automobile manufacturers from costly licensing obligations; it also enabled others to enter the business S ! D When the United States became involved in World War I (April 1917), the Ford Motor Company placed its resources at the disposal of the government For the duration of the war, Ford Motor S ! D produced large quantities of automobiles, trucks, and ambulances, as well as Liberty airplane motors, Whippet tanks, Eagle submarine chasers, and munitions In 1918, Henry Ford officially retired from S ! D the company, naming his son Edsel president and ceding to him a controlling interest But, in fact, S ! D Henry continued to direct company strategy and spent much of his time developing a farm tractor called the Fordson He also published a conservative weekly journal, the Dearborn Independent S ! D S ! D Edsel, who was more reserved and pragmatic than his father, concerned himself with routine operations S ! D At the end of the war Henry and Edsel Ford disagreed with fellow stockholders over the planned expenditure of several million dollars for a large new manufacturing complex at River Rouge, near Detroit The Fords eventually resolved the conflict by buying out all the other shareholders Their S ! D S ! D company was re-registered as a Delaware corporation in July 1919 The River Rouge facility, built S ! D shortly afterward, was a large integrated manufacturing and assembly complex which included a steel mill of substantial capacity S ! D Cash-Strapped in the 1920sBiZdoM : Companies History Part 1 | Between January 1 and April 19, 1921, the Ford Motor Company had $58 millio n in financial obligations due, and only $20 million available to meet them Convinced that Ford Motor would be S ! D forced into bankruptcy, representatives of several large financial houses offered to extend loans to the company, on the condition that the Fords yield financial control When the offer was refused, the S ! D bankers retreated, certain that they would soon be called upon to repossess the company With little S ! D time available, Henry Ford transferred as many automobiles as possible to his dealerships, who w ere instructed to pay in cash Almost immediately, this generated $25 million Next, Ford purchased the S ! D S ! D Detroit, Toledo & Ironton railroad, the primary medium of transportation for his companys supplies S ! D By rearranging the railroads schedules, Ford was able to reduce by one-third the time that automotive components spent in transit This allowed him to reduce inventories by one-third, thereby S ! D releasing $28 million With additional income from other sources, and reduction in production costs, S ! D Feedback at bizdomonline@gmail.com 201

Ford had $87 million in cash by April 1, $27 million more than he needed to pay off the companydebtsS ! DThe Ford Motor Companys only relationship with banks after this crisis was as a depositor S ! DMoreover, despite poor financial management, Ford maintained such strong profitability that itoffered to lend money on the New York markets, in competition with banks With large quantities of S ! Dcash still available, Ford acquired the financially troubled Lincoln Motor Company in 1922 Edsel S ! DFord was more enthusiastic about the development of the aircraft industry than his father, and in1925 persuaded his fellow shareholders (all family members) to purchase the Stout Metal AirplaneCompany His close friend William Stout, who was retained as vice -president and general manager of S ! Dthe company, developed a popular three-engine passenger aircraft known as the Ford Trimotor S ! DNearly 200 of these aircraft were built during its production run S ! DAfter 18 years producing the Model T, the Ford Motor Company faced its first serious threat f rom acompetitor In 1926, General Motors Corporation introduced its Chevrolet automobile, a more stylish S ! Dand powerful car Sales of the Model T dropped sharply After months of experimenting with a six- S ! D S ! Dcylinder model, Ford decided to discontinue the Model T in favor of the new Model A On May 31, S ! D1926, Ford plants across the country were closed for six months while assembly lines were retooled S ! DThat year Ford voluntarily reduced its work week to five days, declaring that workers should alsobenefit from the success of the company Ford was also one of the first companies to limit the work S ! Dday to eight hours, and to establish a minimum wage of $5 per day At Henry Fords own admission, S ! Dthese policies were instituted more to improve productivity than to appea se dissatisfied (andunrepresented) workers S ! DThe British Ford Company was formed in 1928 and shortly thereafter the German Ford Companywas founded Henry Ford recognized the Soviet Union as a market with great potential, and like a S ! Dnumber of other American industrialists, he fostered a relationship with officials in the Sovietgovernment Later, Ford participated in the construction of an automobile factory at Nishni - S ! DNovgogrod S ! DThe War YearsIn 1940, Henry Ford, who opposed American involvement in World War II, canceled a contract BiZdoM : Companies History Part 1(arranged by Edsel) to build 6,000 Rolls-Royce Merlin aircraft engines for the British Royal Air Force,and 3,000 more for the U S Army In time, however, public opinion led Ford to change his mind S ! D S ! D S ! D S ! DPlans were made for the construction of a large new government-sponsored facility to manufactureaircraft at Willow Run, west of Dearborn S ! DUnionization activities climaxed in April 1941 when Ford employees went on strike The NLRB called S ! Dan employee election, under the terms of the Wagner Act, to establish a union representation forFord workers When the ballots were tabulated in June, the UAW drew 70 percent of the votes S ! D S ! DHenry Ford, an avowed opponent of labor unions, suddenly altered his stand He agreed to a S ! Dcontract with union representatives which met all worker demands S ! D@Team BiZdoM 202

BIZDOM : COMPANIES HISTORY PART 1 The company devoted its resources to the construction of the Willow Run Aircraft plant Eight S ! D months later, in December 1941, the Japanese bombing of Pearl Harbor resulted in a declaration of war by the United States against Japan, Germany, and Italy Willow Run was completed the following S ! D May It was the largest manufacturing facility in the world, occupying 2 5 million square feet of floor S ! D S ! D space, with an assembly line three miles long Adjacent to the plant were hangars, covering 1 2 S ! D S ! D million square feet, and a large airfield The airplanes produced at this facility were four-engine B- S ! D 24E Liberator bombers, the Consolidated Aircraft version of the Boeing B -24 Production of aircraft S ! D got off to a slow start, but after adjustments the rate of production was raised to one plane per hour, 24 hours a day During the war, other Ford Motor plants produced a variety of engines, as well S ! D as trucks, jeeps,--4 tanks,--10 tank destroyers, and transport gliders The company also S ! D manufactured large quantities of tires, despite the removal of its tire plant to the Soviet Union S ! D Company officials studied Japanese methods of industrial management, and worked more closely with Toyo Kogyo, the Japanese manufacturer of Mazda automo biles (Ford gained a 25 percent share of Toyo Kogyo in November 1979, when a Ford subsidiary merged with the company) Ford imported S ! D Mazda cars and trucks, and in many ways treated Toyo Kogyo as a small car division until the Escort, its successor to the Pinto, reached the showrooms This new compact was modeled after the S ! D Ford (Europe) Erika; another version of it, the Lynx, was produced by Fords Lincoln -Mercury division S ! D Caldwell transferred the talented manager Harold Poling from the European division t o the United States in an attempt to apply successful European formulas to the American operation In the S ! D restructuring that followed, several plants were closed and more than 100,000 workers were dismissed Fords weakness in the market was a major concern of the unions; consequently, the S ! D company inaugurated a policy of employee involvement in plant operations and was able to secure more favorable labor contracts Productivity improved dramatically S ! D S ! D In 1984, with costs reduced, Ford started to repurchase 30 million shares (about 10 percent of the companys stock) Its production of cars in Mexico was increased, and through its interest in Kia S ! D Motors, output was stepped up in South Korea The following year, Ford introduced the Taurus S ! D (another version, the Sable, was produced by its Mercury division), a modern full -size automobile which had taken five years to develop at a cost of $3 billion The Taurus proved highly successful S ! D and won several design and safety awards S ! D Sales and profits reached record levels in 1984, and in 1986 Ford surpassed General Motors in income for the first time since 1924 In addition, Fords market share increased to just under 20 S ! D percent Ford Motor purchased several companies in the mid-1980s, including the First Nationwide S ! D Financial Corporation and the New Holland tractor division of Sperry, which was later merged with Ford Tractor Ford also purchased a 30 percent share of Otosan, the automotive subsidiary of theBiZdoM : Companies History Part 1 | S ! D Turkish KoX Group The attempted acquisition of the Italian car maker Alfa Romeo in 1986 failed, S ! D due to a rival bid from Fiat S ! D Forbes Inc S ! D Bertie Charles or "B C " Forbes was born in Buchan, Scotland, in 1880, the son of a tailor and later S ! D S ! D beer shop owner Persuaded by a teacher that he had a knack for words, young B C landed a job as S ! D S ! D S ! D a type compositor with the Peterhead Sentinel, mistakenly assuming that compositors "composed" the news stories that would launch his journalistic career Eventually, B C did get a chance to prove S ! D S ! D S ! D his reporting skills and won a cub reporters job with the Dundee Courier and Weekly News, where he covered everything from murder trials to swimming contests Forbess taste for work was S ! D Feedback at bizdomonline@gmail.com 203

insatiable, and he quickly rose to senior reporter, only to leave Scotland for South Africa in 1902 toassume a senior reporters position with the Johannesburg Standard and Diggers News Two years S ! Dlater, B C was back in Scotland with a nest egg, a growing interest in business news, and the ability S ! D S ! Dto engage the people who wrote and made the news Because New York City was, in B C s words, S ! D S ! D S ! Dthe "greatest newspaper town in the world," it seemed only logical that an ambitious businessreporter establish his career there, and in August 1904 Forbes left Scotland for good S ! D"Devoted to Doers and Doings": 1904--29By promising to "work for nothing," Forbes convinced New Yorks Journal of Commerce andCommercial Bulletin to hire him as a reporter on the dry goods industry, where he showed anunusual ability to report not just on business news but the personalities beh ind it His reputation was S ! Dgrowing, and when a London paper offered him a job he turned it down on the condition that theJournal of Commerce make him a financial editor In addition to these new reporting duties, he was S ! Dalso offered the chance to write a regular editorial column for the Journal, which soon led to anopportunity to write another column for a rival New York paper (a practice not unheard of in theperiod) Thus, when newspaper mogul William Randolph Hearst sought to give his New York S ! DAmerican paper a better financial page it was natural that the prolific Forbes seemed the most likelycandidate As a Hearst writer, Forbes enjoyed even greater readership, more venues in which to print S ! Dhis stories, and real power as the most prominent business jo urnalist of his time S ! DThough increasingly well paid by Hearst (more than $185,000 a year in todays terms), in September1917 Forbes decided to leave the position behind to pursue the only journalistic rung he had not yetseized--running his own publication By relying on his continued income from a column for Hearsts S ! Dpaper as well as loans from the many businessmen he had met as a reporter, Forbes establishedForbes magazine to profile the "doers and doings" of the growing American business scene Published S ! Devery two weeks for 15 cents an issue, the early Forbes was largely written by B C himself and S ! D S ! Doffered an unusual combination of assertive, biting prose; unabashed cheerleading for businesssuccess stories; and a moralistic streak that excoriated comp anies when they demonstratedcorruption or exploitative labor practices S ! DIn the boom years of the 1920s, Forbes had the business magazine front to itself, which it servedwell by popularizing the world of business through revealing glimpses at the persona lities behind thenumbers and products To his credit, B C Forbes seemed to sense that the great bull market of the BiZdoM : Companies History Part 1 S ! D S ! D S ! Dlate 1920s was getting out of hand, and in the months before the crash of October 1929 he warnedhis readers that "this is the ideal time to get out of debt," that is, close out their highly leveragedstock portfolios and abandon speculative investing Forbes thus escaped the terrifying free fall in S ! Dstock prices in the fall of 1929, but he mistakenly assumed the worst was over and prematurelybought up stocks at their new bargain-basement prices When stocks continued their descent in the S ! Dmonths that followed Forbes magazine joined the rest of the country in hard times Because B C S ! D S ! D S ! Dhimself continued to write for Hearsts paper, however, he co uld use his still sizable writing incometo keep the magazine afloat S ! DThe Great Crash and New Competition: 1929 --45@Team BiZdoM 204

BIZDOM : COMPANIES HISTORY PART 1 However, the crash was not the only source of trouble B C faced as the 1930s began In 1929 and S ! D S ! D S ! D 1930, respectively, two new competitors, Business Week and Fortune, joined the business magazine market Both took a different approach to business news By publishing twice as often as Forbes, S ! D S ! D Business Week embraced a news-oriented approach, and the monthly Fortune built a reputation for long, in-depth analyses of corporations Forbess highly subjective style and businessman-as-hero slant S ! D suddenly seemed less than cutting edge By 1939, Forbess advertising had fallen from 1,216 pages S ! D in 1929 to 269, and its paid circulation of 102,000 ran a dis tant third to Fortunes 248,000 and Business Weeks 192,000 S ! D To keep Forbes afloat, B C tried to innovate and diversify He published books with such titles as S ! D S ! D S ! D The Salesmans Diary for 1938 and Daily Pep Pellets, hired and fired a series of managing edit ors, and shifted the magazines focus from financial and stock market stories to a more nuts -and-bolts industrial beat Though by 1943 B C could still claim an income of $50,000 and holdings of half a S ! D S ! D S ! D million dollars, his longtime safety valve, his column for the New York American, disappeared when Hearst canceled it S ! D Postwar Rebirth?: 1945--64 Like the U S economy after World War II, things began to look better for Forbes magazine as the S ! D S ! D postwar boom began to take hold After winning the Bronze Star and Purple Heart in World War II, S ! D B C s second oldest son, Malcolm, began to shake things up at the magazine, insisting that it hire its S ! D S ! D own staff and stop relying on commissioned pieces and scrapping B C s insiders stock tip service in S ! D S ! D favor of the much more lucrative Forbes Investors Advisory Institute, which by 1950 was generating $51,000 a year in net profit In 1946, Advertising Age reported that Forbess circulation had leaped S ! D by 26,000 in the space of four months, and by 1948 Malcolm had launched th e magazines annual January 1st ranking of U S corporations, which eventually became a profitable source of advertising S ! D S ! D revenue (and anticipated the Fortune 500 list by five years) S ! D Malcolm also made mistakes, however His attempt at a coffeetable celebration of American history, S ! D Nations Heritage magazine, may have been, as it was billed, "the most beautiful magazine in history," but its expensive inks, deluxe coated paper, and hefty newsstand price taxed Forbes Inc s S ! D coffers and it quickly folded in 1949 While Malcolms older brother Bruce ran Forbes magazines S ! D business operations, in the 1950s Malcolm pursued another quixotic and doomed pursuit that distracted him from his duties at the magazine: running for election to Congress When B C died in S ! D S ! D S ! D May 1954, Forbess postwar bloom had begun to fade, and with the magazines ownership now divided between Malcolm, Bruce, and two other brothers (who shared a third of the companys equity) it was unclear who would lead Forbes back to battle against Business Week and Fortune S ! D When a new managing editor, Byron "Dave" Mack, began hiring researchers to verify writers facts,BiZdoM : Companies History Part 1 | however, Forbes began to become a more reliable source of information, and this seemed to free its writers to write more confidently Forbess circulation once again began to climb By the late 1950s, S ! D S ! D with Dave Mack shifted to editor and James W Michaels hired as managing editor, Forbes was S ! D winning a larger and larger readership among business executives and investors Between 1954 and S ! D 1958 alone, circulation grew by more than 100 percent to 265,000, and in 1957 Forbes Inc s S ! D revenues stood at an estimated $3 5 million annually S ! D S ! D Malcolm Takes Over: 1964--90 In June 1964, Bruce Forbes, whose advertising and business savvy had helped strengthe n Forbess bottom line, died of cancer at 48 Malcolm stepped into the breach, buying out the 30 percent stakeS ! D Feedback at bizdomonline@gmail.com 205

of Bruces widow to become the majority owner of Forbess stock He then pressured his brothers S ! DGordon and Wallace to sell their shares and eventually gained total control of Forbes Inc His S ! Dultimate goal was to make Forbes the highest circulation business magazine on the market, and hisaggressive, award-winning "Forbes: Capitalist Tool" ad campaign paid immediate dividends S ! DPositioning Forbes as the bold and adventurous interpreter of the story behind the news, the messageof the new ads was mirrored by Malcolms own personal promotions: local publicity visits to majoradvertising markets in which potential Forbes advertisers were wined and dined on the family yachtHighlander S ! DBy the third quarter of 1966, Forbess circulation had passed Fortune, and by the end of 1967 itstood at 500,000, ahead of Fortune by 25,000 but still trailing Business Week by 30,000 readers S ! DThere were still false steps, however An Arabic-language version of the magazine folded in 1979, S ! Dand a weekly Forbes Restaurant Guide folded after two years Moreover, Malcolm had begun buying S ! Dexpensive mansions, ranches, and even a Pacific island to offer getaways for businessmen se eking tolive the Forbes life These projects lost money, however, until Forbes decided to break up his Denver - S ! Darea ranch into five-acre parcels to be sold to the public through Forbes magazine and its newsstandcompetitors The stratagem worked, and the Sangre de Cristo ranch eventually returned $34 million S ! Dfor the company on a $3 5 million initial investment Meanwhile, by the end of 1972 Forbess S ! D S ! Dcirculation had climbed to 625,000 (75,000 higher than Fortune), and subscriptions alone weregenerating $4 5 million a year Advertising was bringing in $20 million a year by 1976, and the S ! D S ! Dincome from the Forbes Stock Market Course and from renting its Manhattan office building furtherpadded the bottom line S ! DIn 1982 Malcolm undertook the first of several inter national "Friendship Tours," in which an army of"Capitalist Tool" motorcyclists and hot-air balloonists descended on such countries as China,Pakistan, Japan, Germany, Turkey, and Spain spreading goodwill and the Forbes name The same S ! Dyear, Forbes launched its notorious "Forbes Richest 400" list, which helped to raise the magazinesnet worth to about $250 million (with another $150 million coming from real estate and otherproperty) By 1983, Forbes ranked eighth among AdWeeks "ten hottest" magazines (ra nked by ad S ! Drevenue) Since 1970, Forbes had expanded from an 18 percent share of the total ad revenues of S ! DBig Three business magazines to 33 percent, and it was Business Week that bore the brunt In S ! D1984, it therefore hired a new editor to stave off the Fo rbes threat, but new magazines includingManhattan Inc , Financial World, and Crains were making the business newsstand an increasingly S ! Dcrowded, cutthroat place In 1986, the gloves came off in the business magazine ad wars when BiZdoM : Companies History Part 1 S ! DForbes ran a confrontational ad under the words "Business Weak " S ! DFrito-Lay Company1932: Elmer Doolin founds the Frito Company in San Antonio, Texas, and begins makingFritos corn chips S!D1938: Herman W Lay buys Atlanta potato chip maker, changes name to H W Lay & S!D S!D S!DCompany, Inc , the following year S!D S!D1944: H W Lay begins marketing potato chips under the Lays name S!D S!D S!D1948: Frito Company introduces Chee-tos snacks S!D@Team BiZdoM 206

BIZDOM : COMPANIES HISTORY PART 1 Frito-Lay traces its origins to the early 1930s In the midst of the Great Depression, the lack of job S ! D prospects spurred a number of young people to turn to entrepreneurship in order to get ahead S ! D Among these were the founders of the two companies that would merge in 1961 to form Frito -Lay S ! D Elmer Doolins entrance into the snack food industry was one of happenstance In 1932 the Texas S ! D native was running an ice cream business which was struggling because of a price war Doolin began S ! D seeking a new venture and happened to buy a five-cent, plain package of corn chips while eating at a San Antonio café At the time, corn chips or "fritos" (the word frito means fried in Spanish) were a S ! D common fried corn meal snack in the Southwest Typically, cooks would cut flattened corn dough into S ! D ribbons, then season and fry them S ! D Impressed with his five-cent snack, Doolin discovered that the manufacturer wished to return to Mexico and would sell his business for $100 Doolin borrowed the money from his mother, S ! D purchasing the recipe, 19 retail accounts, and production equipment consisting of an old, handheld potato ricer Initially setting up production in his mothers kitchen, Doolin spent his nights cooking S ! D Frito brand corn chips and sold them during the day from his Model T Ford Early production S ! D capacity was ten pounds per day, with profits of about $2 per day on sales ranging from $8 to $10 per dayS ! D Doolin soon expanded to the family garage, and increased production by developing a press that operated more efficiently than the potato ricer Within a year of his purchase of the business, Doolin S ! D moved the headquarters for the Frito Company from San Antonio to Dallas, the latter having distribution advantages Sales began expanding geographically after Doolin hired a sales force to S ! D make regular deliveries to stores The Frito Company also began selling the products of potato chip S ! D manufacturers through license agreements The company soon had plants operating in Houston, S ! D Tulsa, and Dallas S ! D In early 1941 Doolin expanded to the West Coast by opening a small manufacturing facility in Los Angeles Only the onset of World War II and rationing slowed Fritos growth But sales quickly picked S ! D S ! D up again following the wars end, and by 1947 revenues exceeded $27 million Doolin moved his S ! D company toward national status through licensing agreements The first came in 1945, when Frito S ! D granted H W Lay & Company an exclusive franchise to manufacture and distribute Fritos in the S ! D S ! D Southeast This marked the beginning of a close relationship between the two companies, and would S ! D eventually lead to their 1961 merger In 1946 another franchise was launched in Bethesda, S ! D Maryland, followed by a Hawaii-based franchise in 1947 The following year, Frito introduced Chee- S ! D tos brand Cheese Flavored Snacks, which gained immediate popularity Meantime, the Fritos brand S ! D went national in 1949 when Doolin purchased color adverti sements in several magazines, including Ladies Home Journal, Better Homes and Gardens, and Life S ! DBiZdoM : Companies History Part 1 | By 1954 the Frito Company business included 11 plants and 12 franchise operations In 1953 the S ! D Frito Kid made his debut as a company spokesman; the character continued to be used in Fritos advertising until 1967 In 1956 the Frito Kid made an appearance on the "Today" show with host S ! D Dave Garroway, marking the Frito Companys first use of television advertising Fritos gained a new S ! D advertising theme in 1958 with the debut of "Munch a Bunch of Fritos " That year, the Frito S ! D Company acquired the rights to Ruffles brand potato chips The following year, Doolin died, having S ! D led his company to its status as a major snack food maker, with revenues exceeding $51 million The S ! D Frito Company continued to operate 11 plants, but its franchise operations had been reduced to six after the company bought out several franchisees John D Williamson took over as president of the S ! D S ! D company Within two years of Doolins death, the Frito Company would merge with H W Lay S ! D S ! D S ! D S ! D Feedback at bizdomonline@gmail.com 207

Early Years of H W Lay & Company S ! D S ! DH W Lay & Company, Inc was founded by another entrepreneur, Herman W Lay Born in humble S ! D S ! D S ! D S ! D S ! Dcircumstances in 1909 in Charlotte, North Carolina, Lay had worked a variety of jobs and r un a fewsmall businesses from the age of ten, including an ice cream stand, before taking a position as aroute salesman at the Barrett Food Products Company, an Atlanta -based potato chip manufacturer,in 1932 Later that year, Lay borrowed $100 to take over Barretts small warehouse in Nashville on S ! Da distributorship basis This was coincidentally the same year that Doolin had established the Frito S ! DCompany S ! DLay started out selling Barretts Gardner brand products from his 1928 Model A Ford, initiallypocketing about $23 a month Growth came rapidly, however In 1933 Lay hired his first salesman, S ! D S ! Dand by the following year his company had six sales routes By 1936 Lay employed a workforce of S ! D25 and had moved his company from its original warehouse to another Nashville building From this S ! Dlocation, Lay began manufacturing products himself, including peanut butter cracker sandwiches andfrench fried popcorn In 1938 the latter became the first item marketed under the Lays name, S ! Dspecifically Lays Tennessee Valley Popcorn By that year Lay was distributing snack foods throughout S ! Dcentral Tennessee and southern Kentucky, and had opened a new warehouse in Chattanooga The S ! Dmost significant development of 1938, however, came as a result of financial difficulties enco unteredby Barrett Food Products After securing $60,000 in financing through business associates and S ! Dfriends, Lay bought Barrett, its plants in Memphis and Atlanta, and the Gardners brand name He S ! Dchanged the name of the company to H W Lay & Company, Inc , with headquarters in Atlanta S ! D S ! D S ! D S ! DFrito-Lay began its PepsiCo era with the same lineup of brands it had when Frito -Lay was created in1961: Fritos, Lays, Ruffles, Chee-tos, and Rold Gold Shortly after the creation of PepsiCo, Lays S ! Dbecame the first potato chip brand to be sold nationally Of even greater importance was increased S ! Dnew product development activity In 1966 Frito-Lay began test-marketing a new triangular tortilla S ! Dchip under the brand name Doritos Compared to regular tortilla chips, Doritos were more flavorful S ! Dand crunchier Launched nationally in 1967, Doritos proved successful, but additional market S ! Dresearch revealed that many consumers outside the Southwest and West considered the chip to betoo bland--not spicy enough for what was perceived as a Mexican snack Frito-Lay therefore S ! Ddeveloped taco-flavored Doritos, which were introduced nationally in 1968 and were a tremendoussuccess Four years later, national distribution began of nacho cheese -flavored Doritos, which were S ! Dalso a hit Ironically, with increasing popularity, Doritos became less and less identified as a BiZdoM : Companies History Part 1 S ! D"Mexican snack," a development that echoed the earlier brand history of Fritos During the 1970s S ! DDoritos became Frito-Lays number two brand in terms of sales, trailing only La ys This spectacular S ! Dgrowth was fueled by heavy advertising expenditures --as much as half of the companys overall $23million ad budget in the mid-1970s The "Crunch" campaign began in the early 1970s, and gained S ! Dadded impetus in 1976 when Avery Schrieber began crunching Doritos on national television Frito- S ! DLay also found lesser success in this period with other new products, including Funyuns onion-flavoredrings, which debuted in 1969, and the Munchos potato crisps that were launched in 1971 S ! DIn 1968 Frito-Lay began a new Fritos advertising campaign featuring the Frito Bandito, a Mexicanbandit complete with a long mustache, sombrero, and six -gun who spoke in a heavy accent Ads S ! Dshowed the cartoon character robbing and scheming to get his beloved Frito s corn chips The S ! D@Team BiZdoM 208

BIZDOM : COMPANIES HISTORY PART 1 campaign quickly drew heavy criticism from Mexican American groups who alleged that it showed a prejudice against Mexican Americans and perpetuated a stereotype Responding to the protests, S ! D radio and television stations in California began pulling Frito Bandito spots off the air Frito-Lay S ! D finally ended the campaign in 1970 S ! D Fruit of the Loom, Inc S ! D The history of the company involves two separate entities: the B B & R Knight Brothers textile S ! D S ! D S ! D company and The Union Underwear Company The Knight Brothers established a textile company in S ! D Pontiac, Rhode Island, in the mid-nineteenth century Their high quality broadcloth was recognized as S ! D some of the best fabric for the homemade clothing and linens that were common at the time In S ! D 1851, when trademarking was still in its infancy, the brothers gave their cloth the imaginative name "Fruit of the Loom " S ! D Rufus Skeel, one of the merchants who sold the Knight brothers cloth commercially, operated a dry goods store in New Yorks Hudson Valley, and his daughter, an artist, painted pictures of local apple varieties Over time, her paintings became associated with the Fruit of the Loom name Soon, the S ! D S ! D apple accompanied the name on printed labels that identified the Knight brothers increasingly popular cloth The serendipitous combination of the two components helped make Fruit of the Loom S ! D the first branded textile product in the United States When the federal patent and trademark office S ! D opened in 1871, the trademark (which had grown to include a clu ster of fruits) received the United States 418th patent S ! D As long as women made their own clothing and linens, Fruit of the Loom textiles remained in demand But the development of the manufactured apparel industry in the early twentieth century S ! D considerably diminished the fabric market The market for piecegoods declined as homemakers did S ! D less sewing and began to favor ready-made clothing and linens Although the original products S ! D market dwindled, the trademark still enjoyed popularity Thus, in 1928, the Fruit of the Loom S ! D Company began to license the brand to manufacturers of finished garments S ! DBiZdoM : Companies History Part 1 | Feedback at bizdomonline@gmail.com 209

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Ebooks company history part1

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Ebooks company history part1 — Document Transcript