Indias Tata Steel Company Analysis

Indias Tata Steel Company Analysis By acquiring Anglo-Dutch steel firm Corus, Indias Tata Steel is now one of the worlds top five steel makers. Professor Tarun Khanna says the fact that the deal is the largest out of India and generated by the private sector makes this a notable event. But now comes the hard part-making the merger work. Can Tata avoid mistakes made by Chinese companies? Key concepts include: * Tatas acquisition of Corus is notable not only for creating a new steel giant, but also because this deal was a private sector venture far from Indian government influence. * Tata should be able to make the merger work by virtue of its position of financial strength as well as previous cross-border experiences. The West should not underestimate this heretofore relatively unknown competitor. Contents INTRODUCTION TATA STEEL C0MPANY:- Tata Iron Steel Company Ltd. (TISCO) is the iron and steel production company associated with the Tata group of some 80 different industrial and other business enterprises in India, founded by members of the Tata family. TISCO operates as Indias largest integrated steel works in the private sector with a market share of nearly 13 present and is the second largest steel company in the entire industry. Its products and services include hot and cold rolled coils and sheets, tubes, construction bars, forging quality steel, rods, structural, strips and bearings, steel plant and material handling equipment, Ferro alloys and other minerals, software for process controls, and cargo handling services. Through its subsidiaries, TISCO also offers tinplate, wires, rolls, refractories, and project management services. Tata Steel was established by Indian Paris businessman Jamsetji Nusserwanji Tata in 1907 (he died in 1904, before the project was completed). CORUS STEEL COMPANY:- Corus Group was created in October 1999 through the merger of British Steel and Koninklijke Hoogovens, and consists of mills and service canters, that produce and distribute steel products to customers worldwide. Corus service Centres, part of Corus Group with sales of over $2 billion, process and distribute products such as coil, sheet, structural sections, bar, tube, and plate products. They provide a variety of processing services such as slitting, levelling, shearing, sawing, and a range of multi-step plate processes. 1 LITERATURE REVIEW CHANGE MANAGEMENT AND LEADERSHIP: CHANGE MANAGEMENT: It is a organized approach to trade with change, both from view of an organization and on in the individual level. This of change management assignment relates to transformation theory. As in an organization changes transform by the leader Mr.RattanTata (CEO) for the reputation and profitability of an organization. CHANGE MODEL: The three stages of change that are still the basis of many approaches today. Unfreeze:- The term change ready is often used to describe people who are unfrozen and ready to take the next step. Some people come ready for change whilst others take a long time to let go of their comfortable current realities. Changing:- may be hard for the individual, often the hardest part is to start. Even when a person is unfrozen and ready for change, that first step can be very scary. Transition can also be a pleasant trap and, as Robert Louis Stephenson said, It is better to travel hopefully than arrive. People become comfortable in temporary situations where they are not accountable for the hazards of normal work and where talking about change may be substituted for real action. Refreeze At the other end of the journey, the final goal is to refreeze, putting down roots again and establishing the new place of stability. In practice, refreezing may be a slow process as changing seldom stop cleanly, but go more in fits and starts with a long tail of bits and pieces. There are good and bad things about this. 2 LEADERSHIP: It is the influencing process of leadership and followers to achieve organisational objectives through change. For achievement and growth of the company, Mr.Rattan Tata change the leadership with employees. STYLE OF LEADERSHIP: Transformational leadership in terms of how the leader affects followers, who are intended to trust, admire and respect the transformational leader. He identified three ways in which leaders transform followers: Increasing their awareness of task importance and value. Getting them to focus first on team or organizational goals, rather than their own interests. Activating their higher-order needs. 3 OBJECTIVES OF CHANGE The main objective of Merger Acquisition transaction is as follows: Proper utilization of all available resources. To prevent exploitation of unutilized and underutilized assets and resources. Forming a strong human base. Reducing tax burden. Improving profits. Eliminating or limiting the competition. Achieving savings in monitoring cost. REASIONS FOR MERGING FOR CORUS:- Total Debt Of Corus Is 1.6 Ban Gap. Corus Needs Supply Of Raw Material At Lower Cost. Though Corus Has Revenue Of $ 18.06 Ban Its Profit Was Just Of $626 MN. Corus Facilities Were Relatively Old With High Cost Of Production. Employee Cost Is 15% While That of Tata Steel Is 9%. Tata had a strong retail and distribution network in India and SE Asia. This would give the European manufacturer an in-road into the emerging Asian markets. FOR TATA:- Tata Was Looking To Manufacture Finished Products In Mature Markets Of Europe. A Diversified Product Mix Will Reduce Risks While Higher End Products will add to bottom line. Corus Holds A Number Of Patents And RD Facility. Tata Is Known For Efficient Handling For Labour And It Aims At Reducing Employee Cost and Improve Productivity. It Will Move From 55th Position In World To 5th In Production Of Steel Globally. Tata was a major supplier to the Indian auto industry and the demand for value added steel products was growing in this market. Hence there would be a powerful combination of high quality developed and low cost high growth market 4 CHANGES:- Corus legal identity was changed last November to Tata Steel Europe. Kirby Adams, MD and CEO of Tata Steel Europe. With the transition to Tata Steel name our customers have the reassurance that the technical ex annual revenue and work force of 50,000 employees Valuing the Acquisition. Method used Enterprise Value Multiple. (EV represents a companys economic value the minimum amount someone would have to pay to buy it outright) Precise and capability earned over a long and successful period will be enhanced by aligning a world-class product with a global leader in steel production. IMPLEMENTATION OF CHANGE MODEL: Market has not responded well to this deal as the price of the stocks fell. Investors are worried about cash outflow and the resultant strain on companys balance sheet. Of the total cash to be paid in the deal $4.1 billion will be forked by Tata steel, rest of the money will be as debts and will be returned from Corus cash flows. No merger is riddle free and almost every has a bit of it. Tata steel needs to concentrate on bringing down the production cost, which is high now. They need to use the best of their management skills. Rattan Tatas dexterity has worked out for the benefit of the group and this time will be no exception. The shareholders need to keep their faith intact in the group and this will pay as it has before. 5 AFTER MERGER: THE GLOBAL STEEL INDUSTRY:- The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. The subprime crisis has led to the recession in economy of different Countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth. 6 CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e. 419m ton, Japan accounts for 9% i.e. 118m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth. The steel industry has been witnessing robust growth in both domestic as well as international markets. In this article, let us have a look at how has the steel industry performed globally in 2007. 7 CAPACITY:- The global crude steel production capacity has grown by around 7% to 1.6 ban in2007 from 1.5 ban tonnes in 2006. The capacity has shown a growth rate of 7% CAGR since 2003. The additions to capacity over last few years have ranged from 36 m tonnes in 2004 to 108 m tonnes in 2007. Asian region accounts for more than 60% of the total production capacity of world, backed mainly by capacity in China, Japan, India, Russia and South Korea. These nations are among the top steel producers in the 8 AFTER MERGER: BENEFITS:- Corus well known strength is the production of high-end steel-used in construction automobile and aircraft as well as its impressive research and development will complement Tata Steel. The merger will also give it access to the important markets of Europe. All that will benefit Corus is the management expertise of the Tatas and their cost advantage in producing steel. With their acumen they will bring down the production cost of Corus. Tata Steel expects to earn $300 million per year through cost savings. Market has not responded well to this deal as the price of the stocks fell. Investors are worried about cash outflow and the resultant strain on companys balance sheet. Of the total cash to be paid in the deal $4.1 billion will be forked by Tata steel, rest of the money will be as debts and will be returned from Corus cash flows. No merger is riddle free and almost every has a bit of it. Tata steel needs to concentrate on bringing down the production cost, which is high now. They need to use the best of their management skills. Rattan Tatas dexterity has worked out for the benefit of the group and this time will be no exception. The shareholders need to keep their faith intact in the group and this will pay as it has before. 9 CHANGE AGENT: I believe this will be the first step in showing that Indian industry can in fact step outside the shores of India in an international marketplace and acquit itself as a global player. RATAN TATA RESISTANCE: Takeover defences include all actions by managers to resist having their firms acquired. Attempts by target managers to defeat outstanding takeover proposals are overt forms of takeover defences. Resistance also includes actions that occur before a takeover offer is made which make the firm more difficult to acquire. The intensity of the defences can range from mild to severe. Mild resistance forces bidders to restructure their offers, but not prevent an acquisition or raise the takeover price substantially. Severe resistance can block takeover bids, thereby giving the incumbent managers of the target firm veto power over acquisition proposals. A natural place to begin the analysis of takeover defences is with the wealth effects of takeovers. There is broad agreement that being a takeover target substantially Increases the wealth of shareholders. Historical estimates of the stock price increases of target firms are about 20% in the mergers and about 30% in tender offers. The large gain for target stockholders in takeovers seems to imply that all takeover resistance is bad. Resistance makes the firm more difficult to acquire. If the defence works, it lowers the probability of a takeover and stockholders are thus less likely to receive takeover premiums. Takeover resistance can benefit shareholders. Stockholders are concerned about the market value of the firm 10 CONCLUSION:- Conclusion With Corus in its fold, Tata Steel can confidently target becoming one of the top-3 steel makers globally by 2015. The company would have an aggregate capacity of close to 56 million tonnes per annum, if all the planned Greenfield capacities go on stream by then. We can conclude that if the acquisitions well planned, Executed and the necessary precautions taken for the deal a company can achieve its strategic objectives and thus ensure its growth through Acquisition. 11 REFRENCES 1 www.tatabolaji.com/opinionbymihirmishra 2 www.invera.com/new/corus/indexshtm 3 www.tatasteel.com>company 4 www.scrib.com/doc/mergeoftatasteelandcorus 5 www.barometer.edlman.comtrust/2009/ 6 www.sixsigmail9.com/article.cfm 7 Leading Change by John P. Katter 8 Managing Change and Transition by Richard Lucked 9 Change Management by Jeffrey Hiatt and Timothy Crease 10 The Change Management Pocket Guide by Kate Nelson and Stacy Aaron 11 Leading Change by James OToole. 12

Usefulness Of Different Sociological Approaches To Suicide

Durkheim wrote in the 1890s and was one of the first sociologists right at the forefront of establishing and defining sociology as a scientific discipline. Durkheim argued that it was not only possible to apply scientific principles to social phenomena but that it was essential to do so in order to produce useful sociology. His 1897 book suicide: a study in sociology uses his scientific methods to explore suicide. Durkheim chooses suicide deliberately, because as the most individual, private and psychologically driven act it was considered by most not to be a social phenomenon.If sociology could identify social factors and causes of suicide, this would demonstrate the power and impact of society on individual behaviour. So in Durkheim’s view he believes our behaviour is caused by social facts and they are said to be external from the individual, constrain individuals and be greater than the individuals. After Durkheim’s analysis of official statistics on suicide it reve aled some social groups are more likely to commit suicide than others. For Durkheim, the social patterns of suicide he discovered is not a random individual act but as stated by Luke’s social factors play a key role.Durkheim’s work showed a correlation between suicide and social facts like suicide rates were higher in predominantly protestant countries than in catholic ones, Jews were the religious group with the lowest suicide rate, married people were less likely to commit suicide and those with higher education had a higher suicide rate. Durkheim said different forms of suicide related to how much integration and regulation there was in society and this would provide us with a fourfold typology. The term social integration means socialisation into the norms, values and lifestyles of social groups and society.Regulation meaning the control that society and social groups has over an individual’s behaviour. With these two factors Durkheim brings upon egoistic su icide not enough integration. The individual isn’t successfully integrated into groups or society, anomic not enough regulation society has insufficient control over individuals, altruistic too much integration an over integrated individual sacrifices their life for the group and fatalistic too much regulation the individual is too highly controlled by society. Durkheim’s work can also be applied into type of society.As Durkheim states modern societies and traditional society differ from one and other in their levels of integration and regulation. Durkheim discovers that modern industrial societies have lower levels of integration due to lack of freedom this weakens bonds and give rise to egoistic suicide. Whilst, traditional pre-industrial societies have higher levels of integration as the group is more important than the individual and this gives rise to altruistic suicide. Durkheim has been criticised by other positivist sociologist.Halbwachs largely supported Durkh eim’s conclusion but pointed out that the impact of rural versus urban lifestyles on suicide rates hadn’t been considered. Also, Gibbs and Martin argued that Durkheim hadn’t used vigorous enough scientific methods even though he’d stressed how important they were. The key concepts of integration and regulation weren’t defined closely enough to be measured statistically. Gibbs and Martin query how anyone can know how anyone can know what â€Å"normal† levels of integration and regulation are.Interpretivist sociologists have devised alternative theories of suicide they say social reality is not a series of social facts for sociologists to discover, but a series of different meanings and interpretations that each person brings to and takes from each situation. Durkheim’s work is fatally flawed from this perspective because he relies on the unquestioning use of official statistics. According to interpretivists, statistics are not fact the y are a social construction based on the definition of the people who compile them.Douglas takes an Interactionist approach to suicide and he is interested in the meaning that suicide has for the deceased, and the way that coroners label death as suicides. He criticises Durkheim’s study of suicide on two main grounds. One of them being the use of suicide statistics because the decision to classify death as a suicide is taken by a coroner and this may produce bias in verdicts reached. So Douglas feels these are the patterns Durkheim found and that well integrated have friends and relatives who may deny death and this explains their low level of suicide.So Durkheim indicates that suicide verdicts and statistics are based on interactions and negotiations between those involved like friends, doctors and police as they may affect death being labelled as a suicide, rather than it actually being one. That’s why people feel integration plays no dividends. Douglas second point criticises Durkheim for ignoring the meanings of the act for those who kill themselves and for assuming that suicide has a fixed or constant meaning.Douglas backs this up as he notes the cultural differences by Japanese samurai warrior who kill themselves because they have been dishonoured by western society. Douglas also states that we need to categorise suicides according to their social meanings because the triggers and response to suicide are different in different cultures. These social meanings consist of transformation of the soul, transformation of the self, achieving sympathy and achieving revenge.Douglas can be criticised, as he is inconsistent, sometimes suggesting that official statistics are merely the product of coroner’s opinions. At other times, he claims we really can discover the cause of suicide-yet how can we, if we can never know whether a death was a suicide and all we have is coroners opinions? Douglas also produces a classification of suicide based on the supposed meanings for the actors. However, there is no reason to believe that sociologists are any better than coroners at interpreting dead person’s meanings.

Guillermo’s Furniture Store Scenario Essay

Financial principles, financial markets, and business ethics construct a major infrastructure for financial decisions that all managers or supervisors must make on a constant basis. The purpose of this paper is to explain the financial concepts found in this week’s readings and how these concepts relate to the Guillermo’s Furniture Store Scenario. According to the text reading, â€Å"the principles of finance, described in this section and the two that follow, are based on logical deduction and on empirical observation† (Chapter 2, p. 20). Until the late 1990s, Guillermo’s Furniture Store retained its competitive advantage in the furniture market. The arrival of a new overseas competitor entering the furniture market, decreased furniture prices, and increased labor costs posed as a new challenge for the organization (University of Phoenix, 2009). For several years, Guillermo’s Furniture Store dominated the furniture manufacturing market with the ideal supply of timber to create a variation of types of furniture. As a result, the owner did not know how to forecast the new challenges that faced the company. As the new competition starts to enter the furniture market, these competitors have developed an advanced technology that produces a more customized product to meet consumer demand. With labor costs rising, Guillermo did not realize these changes and how this would affect his current business. Guillermo’s Furniture Store will need to consider the principle of self-interested behavior to help minimize the risks associated with the changes in the furniture business to meet customer expectations. The concept of the principle of self-interested behavior basically implies that with a level playing field in the furniture business meaning all aspects of the business equals one another, then Guillermo will need to act or perform in the best financial interest of his own company. One option for Guillermo’s Furniture Store would be to purchase a high-tech laser lather operating equipment for manufacturing the product. This would be an example of the principle of self-interested behavior as it is an important corollary of this principle (Emery, Finnerty, & Stowe, 2007). This action will create a more desirable competing action for the benefit of his organization. Guillermo could also consider becoming a furniture manufacturer for a Norway company by facilitating all distributing pathways and this behavior is an example of the principle of valuable ideas. Emery, Finnerty & Stowe state, â€Å"new products or services can create value, so if you have a new idea, you might then transform it into extraordinary positive value for yourself† (Chapter 2, p. 24). This type of behavior is clear if the owner decides to patent the current process for coating the furniture as it creates new ideas. Guillermo will need to consider ways to create value by developing exceptional customer service with the creation of better products and services at the lowest possible price without sacrificing the quality of the product or service. The competition is fierce overseas as a direct result of inexpensive parts and labor. The furniture store will have to create the lowest and best quality product to meet consumer demands. Guillermo will need to meet the competition with its market presence by focusing on remaining competitive with the patent process. In order to make a strategic decision on which process will be best for the furniture store, Guillermo will need to take a closer look at the financial statements to make the financial decision. Strategic analysis of financial transaction is one of the most vital facets of an organization with regard to important business decisions. This type of analysis assists any business owner or manager in deciding which type of alternative or plan would be most beneficial to the company. These decisions should also consider the impact on the market and the competition as well as the organization. Guillermo will need to discover the financial impact of either choice mentioned above to make the best decision. Reference Emery, D. R., Finnerty, J. D., Stowe, J. D. (2007). Corporate Financial Management (3rd ed). Chapter 2: The Financial Environment: Concepts and Principles. Prentice Hall, Inc: A Pearson Education Company. University of Phoenix. Guillermo’s Furniture Store Data. Retrieved from University of Phoenix, Corporate Finance-FIN571 website. University of Phoenix (2012). Guillermo’s Furniture Store Scenario. Retrieved from University of Phoenix, Corporate Finance-FIN571 website

Biography of Thomas Edison, American Inventor

Thomas Alva Edison (February 11, 1847–October 18, 1931) was an American inventor who transformed the world with inventions including the lightbulb and the phonograph. He was considered the face of technology and progress in the late 19th and early 20th centuries. Fast Facts: Thomas Edison Known For: Inventor of groundbreaking technology, including the lightbulb and the phonograph Born: February 11, 1847 in Milan, OhioParents: Sam Edison Jr. and Nancy Elliott EdisonDied: October 18, 1931 in West Orange, New JerseyEducation: Three months of formal education, homeschooled until age 12Published Works: Quadruplex telegraph, phonograph, unbreakable cylinder record called the Blue Ambersol, electric pen, a version of the incandescent lightbulb and an integrated system to run it, motion picture camera called a kinetographSpouse(s): Mary Stilwell, Mina MillerChildren: Marion Estelle, Thomas Jr., William Leslie by Mary Stilwell; and Madeleine, Charles, and Theodore Miller by Mina Miller Early Life Thomas Alva Edison was born to Sam and Nancy on February 11, 1847, in Milan, Ohio, the son of a Canadian refugee and his schoolteacher wife. Edisons mother Nancy Elliott was originally from New York until her family moved to Vienna, Canada, where she met Sam Edison, Jr., whom she later married. Sam was the descendant of British loyalists who fled to Canada at the end of the American Revolution, but when he became involved in an unsuccessful revolt in Ontario in the 1830s he was forced to flee to the United States. They made their home in Ohio in 1839. The family moved to Port Huron, Michigan, in 1854, where Sam worked in the lumber business. Education and First Job Known as Al in his youth, Edison was the youngest of seven children, four of whom survived to adulthood, and all of them were in their teens when Edison was born. Edison tended to be in poor health when he was young and was a poor student. When a schoolmaster called Edison addled, or slow, his furious mother took him out of the school and proceeded to teach him at home. Edison said many years later, My mother was the making of me. She was so true, so sure of me, and I felt I had someone to live for, someone I must not disappoint. At an early age, he showed a fascination for mechanical things and chemical experiments. In 1859 at the age of 12, Edison took a job selling newspapers and candy on the Grand Trunk Railroad to Detroit. He started two businesses in Port Huron, a newsstand and a fresh produce stand, and finagled free or very low-cost trade and transport in the train. In the baggage car, he set up a laboratory for his chemistry experiments and a printing press, where he started the Grand Trunk Herald, the first newspaper published on a train. An accidental fire forced him to stop his experiments on board. Loss of Hearing Around the age of 12, Edison lost almost all of his hearing. There are several theories as to what caused this. Some attribute it to the aftereffects of scarlet fever, which he had as a child. Others blame it on a train conductor boxing his ears after Edison caused a fire in the baggage car, an incident Edison claimed never happened. Edison himself blamed it on an incident in which he was grabbed by his ears and lifted to a train. He did not let his disability discourage him, however, and often treated it as an asset since it made it easier for him to concentrate on his experiments and research. Undoubtedly, though, his deafness made him more solitary and shy in dealing with others. Telegraph Operator In 1862, Edison rescued a 3-year-old from a track where a boxcar was about to roll into him. The grateful father, J.U. MacKenzie, taught Edison railroad telegraphy as a reward. That winter, he took a job as a telegraph operator in Port Huron. In the meantime, he continued his scientific experiments on the side. Between 1863 and 1867, Edison migrated from city to city in the United States, taking available telegraph jobs. Love of Invention In 1868, Edison moved to Boston where he worked in the Western Union office and worked even more on inventing things. In January 1869 Edison resigned from his job, intending to devote himself full time to inventing things. His first invention to receive a patent was the electric vote recorder, in June 1869. Daunted by politicians reluctance to use the machine, he decided that in the future he would not waste time inventing things that no one wanted. Edison moved to New York City in the middle of 1869. A friend, Franklin L. Pope, allowed Edison to sleep in a room where he worked, Samuel Laws Gold Indicator Company. When Edison managed to fix a broken machine there, he was hired to maintain and improve the printer machines. During the next period of his life, Edison became involved in multiple projects and partnerships dealing with the telegraph. In October 1869, Edison joined with Franklin L. Pope and James Ashley to form the organization Pope, Edison and Co. They advertised themselves as electrical engineers and constructors of electrical devices. Edison received several patents for improvements to the telegraph. The partnership merged with the Gold and Stock Telegraph Co. in 1870. American Telegraph Works Edison also established the Newark Telegraph Works in Newark, New Jersey, with William Unger to manufacture stock printers. He formed the American Telegraph Works to work on developing an automatic telegraph later in the year. In 1874 he began to work on a multiplex telegraphic system for Western Union, ultimately developing a quadruplex telegraph, which could send two messages simultaneously in both directions. When Edison sold his patent rights to the quadruplex to the rival Atlantic Pacific Telegraph Co., a series of court battles followed—which Western Union won. Besides other telegraph inventions, he also developed an electric pen in 1875. Marriage and Family His personal life during this period also brought much change. Edisons mother died in 1871, and he married his former employee Mary Stilwell on Christmas Day that same year. While Edison loved his wife, their relationship was fraught with difficulties, primarily his preoccupation with work and her constant illnesses. Edison would often sleep in the lab and spent much of his time with his male colleagues. Nevertheless, their first child Marion was born in February 1873, followed by a son, Thomas, Jr., in January 1876. Edison nicknamed the two Dot and Dash, referring to telegraphic terms. A third child, William Leslie, was born in October 1878. Mary died in 1884, perhaps of cancer or the morphine prescribed to her to treat it. Edison married again: his second wife was Mina Miller, the daughter of Ohio industrialist Lewis Miller, who founded the Chautauqua Foundation. They married on February 24, 1886, and had three children, Madeleine (born 1888), Charles (1890), and Theodore Miller Edison (1898). Menlo Park Edison opened a new laboratory in Menlo Park, New Jersey, in 1876. This site later become known as an invention factory, since they worked on several different inventions at any given time there. Edison would conduct numerous experiments to find answers to problems. He said, I never quit until I get what Im after. Negative results are just what Im after. They are just as valuable to me as positive results. Edison liked to work long hours and expected much from his employees. In 1879, after considerable experimentation and based on 70 years work of several other inventors, Edison invented a carbon filament that would burn for 40 hours—the first practical incandescent lightbulb. While Edison had neglected further work on the phonograph, others had moved forward to improve it. In particular, Chichester Bell and Charles Sumner Tainter developed an improved machine that used a wax cylinder and a floating stylus, which they called a graphophone. They sent representatives to Edison to discuss a possible partnership on the machine, but Edison refused to collaborate with them, feeling that the phonograph was his invention alone. With this competition, Edison was stirred into action and resumed his work on the phonograph in 1887. Edison eventually adopted methods similar to Bell and Tainters in his phonograph. Phonograph Companies The phonograph was initially marketed as a business dictation machine. Entrepreneur Jesse H. Lippincott acquired control of most of the phonograph companies, including Edisons, and set up the North American Phonograph Co. in 1888. The business did not prove profitable, and when Lippincott fell ill, Edison took over the management. In 1894, the North American Phonograph Co. went into bankruptcy, a move which allowed Edison to buy back the rights to his invention. In 1896, Edison started the National Phonograph Co. with the intent of making phonographs for home amusement. Over the years, Edison made improvements to the phonograph and to the cylinders which were played on them, the early ones being made of wax. Edison introduced an unbreakable cylinder record, named the Blue Amberol, at roughly the same time he entered the disc phonograph market in 1912. The introduction of an Edison disc was in reaction to the overwhelming popularity of discs on the market in contrast to cylinders. Touted as being superior to the competitions records, the Edison discs were designed to be played only on Edison phonographs and were cut laterally as opposed to vertically. The success of the Edison phonograph business, though, was always hampered by the companys reputation of choosing lower-quality recording acts. In the 1920s, competition from radio caused the business to sour, and the Edison disc business ceased production in 1929. Ore-Milling and Cement Another Edison interest was an ore milling process that would extract various metals from ore. In 1881, he formed the Edison Ore-Milling Co., but the venture proved fruitless as there was no market for it. He returned to the project in 1887, thinking that his process could help the mostly depleted Eastern mines compete with the Western ones. In 1889, the New Jersey and Pennsylvania Concentrating Works was formed, and Edison became absorbed by its operations and began to spend much time away from home at the mines in Ogdensburg, New Jersey. Although he invested much money and time into this project, it proved unsuccessful when the market went down, and additional sources of ore in the Midwest were found. Edison also became involved in promoting the use of cement and formed the Edison Portland Cement Co. in 1899. He tried to promote the widespread use of cement for the construction of low-cost homes and envisioned alternative uses for concrete in the manufacture of phonographs, furniture, refrigerators, and pianos. Unfortunately, Edison was ahead of his time with these ideas, as the widespread use of concrete proved economically unfeasible at that time. Motion Pictures In 1888, Edison met Eadweard Muybridge at West Orange and viewed Muybridges Zoopraxiscope. This machine used a circular disc with still photographs of the successive phases of movement around the circumference to recreate the illusion of movement. Edison declined to work with Muybridge on the device and decided to work on his motion picture camera at his laboratory. As Edison put it in a caveat written the same year, I am experimenting upon an instrument which does for the eye what the phonograph does for the ear. The task of inventing the machine fell to Edisons associate William K. L. Dickson. Dickson initially experimented with a cylinder-based device for recording images, before turning to a celluloid strip. In October 1889, Dickson greeted Edisons return from Paris with a new device that projected pictures and contained sound. After more work, patent applications were made in 1891 for a motion picture camera, called a Kinetograph, and a Kinetoscope, a motion picture peephole viewer. Kinetoscope parlors opened in New York and soon spread to other major cities during 1894. In 1893, a motion picture studio, later dubbed the Black Maria (the slang name for a police paddy wagon which the studio resembled), was opened at the West Orange complex. Short films were produced using a variety of acts of the day. Edison was reluctant to develop a motion picture projector, feeling that more profit was to be made with the peephole viewers. When Dickson assisted competitors on developing another peephole motion picture device and the eidoscope projection system, later to develop into the Mutoscope, he was fired. Dickson went on to form the American Mutoscope Co. along with Harry Marvin, Herman Casler, and Elias Koopman. Edison subsequently adopted a projector developed by Thomas Armat and Charles Francis Jenkins and renamed it the Vitascope and marketed it under his name. The Vitascope premiered on April 23, 1896, to great acclaim. Patent Battles Competition from other motion picture companies soon created heated legal battles between them and Edison over patents. Edison sued many companies for infringement. In 1909, the formation of the Motion Picture Patents Co. brought a degree of cooperation to the various companies who were given licenses in 1909, but in 1915, the courts found the company to be an unfair monopoly. In 1913, Edison experimented with synchronizing sound to film. A Kinetophone was developed by his laboratory and synchronized sound on a phonograph cylinder to the picture on a screen. Although this initially brought interest, the system was far from perfect and disappeared by 1915. By 1918, Edison ended his involvement in the motion picture field. In 1911, Edisons companies were re-organized into Thomas A. Edison, Inc. As the organization became more diversified and structured, Edison became less involved in the day-to-day operations, although he still had some decision-making authority. The goals of the organization became more to maintain market viability than to produce new inventions frequently. A fire broke out at the West Orange laboratory in 1914, destroying 13 buildings. Although the loss was great, Edison spearheaded the rebuilding of the lot. World War I When Europe became involved in World War I, Edison advised preparedness and felt that technology would be the future of war. He was named the head of the Naval Consulting Board in 1915, an attempt by the government to bring science into its defense program. Although mainly an advisory board, it was instrumental in the formation of a laboratory for the Navy that opened in 1923. During the war, Edison spent much of his time doing naval research, particularly on submarine detection, but he felt the Navy was not receptive to many of his inventions and suggestions. Health Issues In the 1920s, Edisons health became worse and he began to spend more time at home with his wife. His relationship with his children was distant, although Charles was president of Thomas A. Edison, Inc. While Edison continued to experiment at home, he could not perform some experiments that he wanted to at his West Orange laboratory because the board would not approve them. One project that held his fascination during this period was the search for an alternative to rubber. Death and Legacy Henry Ford, an admirer and a friend of Edisons, reconstructed Edisons invention factory as a museum at Greenfield Village, Michigan, which opened during the 50th anniversary of Edisons electric light in 1929. The main celebration of Lights Golden Jubilee, co-hosted by Ford and General Electric, took place in Dearborn along with a huge celebratory dinner in Edisons honor attended by notables such as President Hoover, John D. Rockefeller, Jr., George Eastman, Marie Curie, and Orville Wright. Edisons health, however, had declined to the point that he could not stay for the entire ceremony. During the last two years of his life, a series of ailments caused his health to decline even more until he lapsed into a coma on October 14, 1931. He died on October 18, 1931, at his estate, Glenmont, in West Orange, New Jersey. Sources Israel, Paul. Edison: A Life of Invention. New York, Wiley, 2000.Josephson, Matthew. Edison: A Biography. New York, Wiley, 1992.Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Three Rivers Press, 2007. Biography of Thomas Edison, American Inventor Thomas Alva Edison (February 11, 1847–October 18, 1931) was an American inventor who transformed the world with inventions including the lightbulb and the phonograph. He was considered the face of technology and progress in the late 19th and early 20th centuries. Fast Facts: Thomas Edison Known For: Inventor of groundbreaking technology, including the lightbulb and the phonograph Born: February 11, 1847 in Milan, OhioParents: Sam Edison Jr. and Nancy Elliott EdisonDied: October 18, 1931 in West Orange, New JerseyEducation: Three months of formal education, homeschooled until age 12Published Works: Quadruplex telegraph, phonograph, unbreakable cylinder record called the Blue Ambersol, electric pen, a version of the incandescent lightbulb and an integrated system to run it, motion picture camera called a kinetographSpouse(s): Mary Stilwell, Mina MillerChildren: Marion Estelle, Thomas Jr., William Leslie by Mary Stilwell; and Madeleine, Charles, and Theodore Miller by Mina Miller Early Life Thomas Alva Edison was born to Sam and Nancy on February 11, 1847, in Milan, Ohio, the son of a Canadian refugee and his schoolteacher wife. Edisons mother Nancy Elliott was originally from New York until her family moved to Vienna, Canada, where she met Sam Edison, Jr., whom she later married. Sam was the descendant of British loyalists who fled to Canada at the end of the American Revolution, but when he became involved in an unsuccessful revolt in Ontario in the 1830s he was forced to flee to the United States. They made their home in Ohio in 1839. The family moved to Port Huron, Michigan, in 1854, where Sam worked in the lumber business. Education and First Job Known as Al in his youth, Edison was the youngest of seven children, four of whom survived to adulthood, and all of them were in their teens when Edison was born. Edison tended to be in poor health when he was young and was a poor student. When a schoolmaster called Edison addled, or slow, his furious mother took him out of the school and proceeded to teach him at home. Edison said many years later, My mother was the making of me. She was so true, so sure of me, and I felt I had someone to live for, someone I must not disappoint. At an early age, he showed a fascination for mechanical things and chemical experiments. In 1859 at the age of 12, Edison took a job selling newspapers and candy on the Grand Trunk Railroad to Detroit. He started two businesses in Port Huron, a newsstand and a fresh produce stand, and finagled free or very low-cost trade and transport in the train. In the baggage car, he set up a laboratory for his chemistry experiments and a printing press, where he started the Grand Trunk Herald, the first newspaper published on a train. An accidental fire forced him to stop his experiments on board. Loss of Hearing Around the age of 12, Edison lost almost all of his hearing. There are several theories as to what caused this. Some attribute it to the aftereffects of scarlet fever, which he had as a child. Others blame it on a train conductor boxing his ears after Edison caused a fire in the baggage car, an incident Edison claimed never happened. Edison himself blamed it on an incident in which he was grabbed by his ears and lifted to a train. He did not let his disability discourage him, however, and often treated it as an asset since it made it easier for him to concentrate on his experiments and research. Undoubtedly, though, his deafness made him more solitary and shy in dealing with others. Telegraph Operator In 1862, Edison rescued a 3-year-old from a track where a boxcar was about to roll into him. The grateful father, J.U. MacKenzie, taught Edison railroad telegraphy as a reward. That winter, he took a job as a telegraph operator in Port Huron. In the meantime, he continued his scientific experiments on the side. Between 1863 and 1867, Edison migrated from city to city in the United States, taking available telegraph jobs. Love of Invention In 1868, Edison moved to Boston where he worked in the Western Union office and worked even more on inventing things. In January 1869 Edison resigned from his job, intending to devote himself full time to inventing things. His first invention to receive a patent was the electric vote recorder, in June 1869. Daunted by politicians reluctance to use the machine, he decided that in the future he would not waste time inventing things that no one wanted. Edison moved to New York City in the middle of 1869. A friend, Franklin L. Pope, allowed Edison to sleep in a room where he worked, Samuel Laws Gold Indicator Company. When Edison managed to fix a broken machine there, he was hired to maintain and improve the printer machines. During the next period of his life, Edison became involved in multiple projects and partnerships dealing with the telegraph. In October 1869, Edison joined with Franklin L. Pope and James Ashley to form the organization Pope, Edison and Co. They advertised themselves as electrical engineers and constructors of electrical devices. Edison received several patents for improvements to the telegraph. The partnership merged with the Gold and Stock Telegraph Co. in 1870. American Telegraph Works Edison also established the Newark Telegraph Works in Newark, New Jersey, with William Unger to manufacture stock printers. He formed the American Telegraph Works to work on developing an automatic telegraph later in the year. In 1874 he began to work on a multiplex telegraphic system for Western Union, ultimately developing a quadruplex telegraph, which could send two messages simultaneously in both directions. When Edison sold his patent rights to the quadruplex to the rival Atlantic Pacific Telegraph Co., a series of court battles followed—which Western Union won. Besides other telegraph inventions, he also developed an electric pen in 1875. Marriage and Family His personal life during this period also brought much change. Edisons mother died in 1871, and he married his former employee Mary Stilwell on Christmas Day that same year. While Edison loved his wife, their relationship was fraught with difficulties, primarily his preoccupation with work and her constant illnesses. Edison would often sleep in the lab and spent much of his time with his male colleagues. Nevertheless, their first child Marion was born in February 1873, followed by a son, Thomas, Jr., in January 1876. Edison nicknamed the two Dot and Dash, referring to telegraphic terms. A third child, William Leslie, was born in October 1878. Mary died in 1884, perhaps of cancer or the morphine prescribed to her to treat it. Edison married again: his second wife was Mina Miller, the daughter of Ohio industrialist Lewis Miller, who founded the Chautauqua Foundation. They married on February 24, 1886, and had three children, Madeleine (born 1888), Charles (1890), and Theodore Miller Edison (1898). Menlo Park Edison opened a new laboratory in Menlo Park, New Jersey, in 1876. This site later become known as an invention factory, since they worked on several different inventions at any given time there. Edison would conduct numerous experiments to find answers to problems. He said, I never quit until I get what Im after. Negative results are just what Im after. They are just as valuable to me as positive results. Edison liked to work long hours and expected much from his employees. In 1879, after considerable experimentation and based on 70 years work of several other inventors, Edison invented a carbon filament that would burn for 40 hours—the first practical incandescent lightbulb. While Edison had neglected further work on the phonograph, others had moved forward to improve it. In particular, Chichester Bell and Charles Sumner Tainter developed an improved machine that used a wax cylinder and a floating stylus, which they called a graphophone. They sent representatives to Edison to discuss a possible partnership on the machine, but Edison refused to collaborate with them, feeling that the phonograph was his invention alone. With this competition, Edison was stirred into action and resumed his work on the phonograph in 1887. Edison eventually adopted methods similar to Bell and Tainters in his phonograph. Phonograph Companies The phonograph was initially marketed as a business dictation machine. Entrepreneur Jesse H. Lippincott acquired control of most of the phonograph companies, including Edisons, and set up the North American Phonograph Co. in 1888. The business did not prove profitable, and when Lippincott fell ill, Edison took over the management. In 1894, the North American Phonograph Co. went into bankruptcy, a move which allowed Edison to buy back the rights to his invention. In 1896, Edison started the National Phonograph Co. with the intent of making phonographs for home amusement. Over the years, Edison made improvements to the phonograph and to the cylinders which were played on them, the early ones being made of wax. Edison introduced an unbreakable cylinder record, named the Blue Amberol, at roughly the same time he entered the disc phonograph market in 1912. The introduction of an Edison disc was in reaction to the overwhelming popularity of discs on the market in contrast to cylinders. Touted as being superior to the competitions records, the Edison discs were designed to be played only on Edison phonographs and were cut laterally as opposed to vertically. The success of the Edison phonograph business, though, was always hampered by the companys reputation of choosing lower-quality recording acts. In the 1920s, competition from radio caused the business to sour, and the Edison disc business ceased production in 1929. Ore-Milling and Cement Another Edison interest was an ore milling process that would extract various metals from ore. In 1881, he formed the Edison Ore-Milling Co., but the venture proved fruitless as there was no market for it. He returned to the project in 1887, thinking that his process could help the mostly depleted Eastern mines compete with the Western ones. In 1889, the New Jersey and Pennsylvania Concentrating Works was formed, and Edison became absorbed by its operations and began to spend much time away from home at the mines in Ogdensburg, New Jersey. Although he invested much money and time into this project, it proved unsuccessful when the market went down, and additional sources of ore in the Midwest were found. Edison also became involved in promoting the use of cement and formed the Edison Portland Cement Co. in 1899. He tried to promote the widespread use of cement for the construction of low-cost homes and envisioned alternative uses for concrete in the manufacture of phonographs, furniture, refrigerators, and pianos. Unfortunately, Edison was ahead of his time with these ideas, as the widespread use of concrete proved economically unfeasible at that time. Motion Pictures In 1888, Edison met Eadweard Muybridge at West Orange and viewed Muybridges Zoopraxiscope. This machine used a circular disc with still photographs of the successive phases of movement around the circumference to recreate the illusion of movement. Edison declined to work with Muybridge on the device and decided to work on his motion picture camera at his laboratory. As Edison put it in a caveat written the same year, I am experimenting upon an instrument which does for the eye what the phonograph does for the ear. The task of inventing the machine fell to Edisons associate William K. L. Dickson. Dickson initially experimented with a cylinder-based device for recording images, before turning to a celluloid strip. In October 1889, Dickson greeted Edisons return from Paris with a new device that projected pictures and contained sound. After more work, patent applications were made in 1891 for a motion picture camera, called a Kinetograph, and a Kinetoscope, a motion picture peephole viewer. Kinetoscope parlors opened in New York and soon spread to other major cities during 1894. In 1893, a motion picture studio, later dubbed the Black Maria (the slang name for a police paddy wagon which the studio resembled), was opened at the West Orange complex. Short films were produced using a variety of acts of the day. Edison was reluctant to develop a motion picture projector, feeling that more profit was to be made with the peephole viewers. When Dickson assisted competitors on developing another peephole motion picture device and the eidoscope projection system, later to develop into the Mutoscope, he was fired. Dickson went on to form the American Mutoscope Co. along with Harry Marvin, Herman Casler, and Elias Koopman. Edison subsequently adopted a projector developed by Thomas Armat and Charles Francis Jenkins and renamed it the Vitascope and marketed it under his name. The Vitascope premiered on April 23, 1896, to great acclaim. Patent Battles Competition from other motion picture companies soon created heated legal battles between them and Edison over patents. Edison sued many companies for infringement. In 1909, the formation of the Motion Picture Patents Co. brought a degree of cooperation to the various companies who were given licenses in 1909, but in 1915, the courts found the company to be an unfair monopoly. In 1913, Edison experimented with synchronizing sound to film. A Kinetophone was developed by his laboratory and synchronized sound on a phonograph cylinder to the picture on a screen. Although this initially brought interest, the system was far from perfect and disappeared by 1915. By 1918, Edison ended his involvement in the motion picture field. In 1911, Edisons companies were re-organized into Thomas A. Edison, Inc. As the organization became more diversified and structured, Edison became less involved in the day-to-day operations, although he still had some decision-making authority. The goals of the organization became more to maintain market viability than to produce new inventions frequently. A fire broke out at the West Orange laboratory in 1914, destroying 13 buildings. Although the loss was great, Edison spearheaded the rebuilding of the lot. World War I When Europe became involved in World War I, Edison advised preparedness and felt that technology would be the future of war. He was named the head of the Naval Consulting Board in 1915, an attempt by the government to bring science into its defense program. Although mainly an advisory board, it was instrumental in the formation of a laboratory for the Navy that opened in 1923. During the war, Edison spent much of his time doing naval research, particularly on submarine detection, but he felt the Navy was not receptive to many of his inventions and suggestions. Health Issues In the 1920s, Edisons health became worse and he began to spend more time at home with his wife. His relationship with his children was distant, although Charles was president of Thomas A. Edison, Inc. While Edison continued to experiment at home, he could not perform some experiments that he wanted to at his West Orange laboratory because the board would not approve them. One project that held his fascination during this period was the search for an alternative to rubber. Death and Legacy Henry Ford, an admirer and a friend of Edisons, reconstructed Edisons invention factory as a museum at Greenfield Village, Michigan, which opened during the 50th anniversary of Edisons electric light in 1929. The main celebration of Lights Golden Jubilee, co-hosted by Ford and General Electric, took place in Dearborn along with a huge celebratory dinner in Edisons honor attended by notables such as President Hoover, John D. Rockefeller, Jr., George Eastman, Marie Curie, and Orville Wright. Edisons health, however, had declined to the point that he could not stay for the entire ceremony. During the last two years of his life, a series of ailments caused his health to decline even more until he lapsed into a coma on October 14, 1931. He died on October 18, 1931, at his estate, Glenmont, in West Orange, New Jersey. Sources Israel, Paul. Edison: A Life of Invention. New York, Wiley, 2000.Josephson, Matthew. Edison: A Biography. New York, Wiley, 1992.Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Three Rivers Press, 2007.