How are companies that start out as large corporations started?


My answer to How are companies that start out as large corporations started?

Answer by Ken Larson:

Those companies did not start out as huge as they are today.

The ones you have mentioned were started small by technical innovators, grew, and went public.

Lockheed, in particular, became mammoth by acquisition, swallowing up dozens of firms when the government loosened its philosophy on anti-trust in the defense industry.

Lockheed Corporation – Wikipedia

Government contracting has made many of these firms huge – not necessarily profitable. They pass on immense overhead and general and administrative expenses to the taxpayer in managing immense operations worldwide.

I was Chief of Central Cost Control at the Martin Marietta Corporation during the bidding war called the “PAC Man Defense” as huge aerospace companies jockeyed for control of each other.

Pac-Man defense – Wikipedia

Lockheed eventually acquired Martin Marietta in one of the biggest defense company acquisitions in history. Slapping an engineering firm (Lockheed) together with a firm dominated by a Finance Organization (Martin Marietta) was an inefficient and difficult way to a huge taxpayer funded result that still operates enormously inefficient today on cost plus and time and material programs like the F-35.

Image: Rose Covered Glasses

6 Reasons to Criticize Lockheed Martin

How are companies that start out as large corporations started?


About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: key words: "Federal Government Contracting"

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