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Table of ContentsList of IllustrationsiiiAbstract 1DiscussionCompany History 2Company Profile 3Financial Analysis 4Stock History 4Management Structure 5Employee Relations Policies 5State of the Industry 6Competitive Analysis 7Conclusion7Reference Page…………………………………………………………... 7List of IllustrationsFigure 1 Bill Moog’s “Little Gem Valve Company” 2 Figure 2 Bell 525 Relentless 3Figure 3 Annual Sales from 2003-2012 4Figure 4 Stock Price from 2008-Present 4Figure 5 Number of Employees from 2003 to 2012 6Figure 6 Moog’s Top Competitor- Mettler-Toledo International 7AbstractMoog Inc., located in East Aurora, NY offers various career opportunities for Medaille graduates in a variety of different fields. Recent graduates interested in fields that range from aeronautics to medical devices can benefit from Moog’s outstanding record of employee satisfaction. Moog offers a very competitive starting salary, beginning at nearly $25/hour, and the option of unlimited overtime. Along with a great starting salary, employees of Moog enjoy full benefits including medical, dental and eye coverage. For any recent graduate that finds travel intriguing, or would like to work in another country, there are 23 international locations. Aside from international opportunities, Moog also has 14 locations across the United States, including one recently purchased in Virginia. Their revenue, along with the number of people employed has been steadily climbing over the past decade. Since 2003, Moog’s revenue has increased from $755 million, to $2.46 billion, and saw an increase from 4700 employees to nearly 11,000. In an industry that is constantly seeing business shipped overseas to cut costs, Moog, a 60 year old company, is a proud American company with plans to operate in the United States for decades to come. It could be considered a “hidden gem” of Western New York, offering opportunities to establish careers pany HistoryMoog Inc. was founded in 1951 by Bill Moog, and began in his basement as Little Gem Valve Company. After his first $800 order, Bill changed his company name to Moog Valve Company. By 1954, Bill Moog’s company had expanded, and over half of all U.S. fight planes, and 70% of U.S. guided missiles were using Moog valves. In 1959, Moog Valve Company changed their name to Moog Servocontrols Inc., opened an industrial division and surpassed $10 million in sales. By 1965 Moog had opened another division, their Hydra-Point division, established their first international subsidiary in Germany and saw record sales of $100 million.Figure 1Bill Moog’s “Little Gem Valve Company” Source: Between 1965 and 1972, Moog had further established their international touch by opening plants in England, as Moog Control Limited, in Japan, as Moog Japan and in France as Moog SARL. 1974 saw Moog develop a Special Products Division where they began to produce ski binding, but more excitingly for Moog, 1974 brought their first space shuttle contract. From 1975 to 1980, Moog once again continued its global conquest and opened plants in Italy, Brazil, Sweden, Australia and Ireland. The beginning years of the 1980’s brought even more success for Moog Inc., surpassing $200 million in annual sales, being named in the first edition of “100 Best Companies to Work For,” and opening plants in the Philippines and Spain. The mid to late 80’s saw no slow down as Moog Inc. once again saw record sales of $300 million while they continued to expand into Korea, India, Hong Kong and Finland. From 1990 to 1995 Moog Inc. opened more locations in Singapore and Denmark and saw the establishment of one of their biggest product lines, Moog Airport Group. In 1993 they were named once again in the second edition of “100 Best Companies to Work For.” By the year 2000 Moog had continued to grow, opening operations in China, reaching $450 million in sales and being #13 on Fortunes “The 100 Best Companies to Work for in America.” Moog kept the tradition of expanding well into the new millennium and does not show any signs of slowing down. Company ProfileMoog Inc. is a diversified manufacturing company internationally known for their motion control technology. Motion control technology is using a “Servo;” a pump, an actuator, or a motor, for the positioning of machines, or used for the velocity of certain machines. Motion control is what helps a plane take off and helicopters blades spin. Moog Inc. currently has over 11,000 employees located all over the world. For any Medaille graduate interested in international business, Moog offers careers in 19 different countries, excluding the United States. For someone looking for a career within the United States, Moog has 14 branches located nationally from Western New York, to Florida, and three locations on the West Coast in California. Moog’s $2.47 billion annual sales come from a variety of markets that use its motion control technology. Their 12 major markets include: Aircraft, Air Traffic Management, Automotive, Defense, Energy, Industrial Machinery, Marine, Medical Devices, Medical OEM, Motorsports, Security and Space. Within these 12 markets they have over 50 different products they sell to various clients, ranging from Boeing to the United States Government. Their most recent contract is with Bell Helicopters for their flight controls on their Bell 525 Relentless.Figure 2Bell 525 Relentless Source: Moog’s motion control technology can also be found on almost every Boeing aircraft, the retractable roof at Wimbledon, and on the Mars rover, Curiosity. Financial Analysis Moog Inc. can be seen as a very financially stable company. Sales last year were at an all-time record of $2.47 billion, and are expected to be even higher in 2013. Historically their sales have seen constant growth, from $755 million in 2003 to their current sales record of $2.47 billion. Moog is also constantly acquiring other businesses to add to their diversified product lines. Their most recent acquisitions include Aspen Motion Technologies which they bought in March 2013 for $34 million cash, and Broad Reach Engineering Company which they purchased in January 2013 for $48 million, $37 million of which was in cash. Their abundance of cash, $148 million at the end of 2012, allows them to continually invest in the success of their company without carrying heavy debt.Figure 4Prepared by B. Holmes with information from Stock HistoryMoog Inc. can be found on the NYSE traded under MOG and was first traded in 1959. There are currently over 45 million shares of Moog stock and is trading at $44.09 per share. Since their IPO in 1959, Moog’s stock price has been steadily climbing and reached an all-time high of $48.18 before the stock market crash in 2009 which saw a drop to $18.51. However it has slowly made a rebound and is currently trading around $45, and is considered a “buy” or at least a “hold” by analysts. Figure 5Prepared by B. Holmes with information from Management StructureMoog Inc. has a corporate structure similar to most large businesses, with a CEO, John Scannel, Executive Chairman, Robert Brady, and CFO/ Vice President, Donald Fishback. Being as large of a company as Moog is, they also have five presidents, one for each of their groups, Aircraft Controls, Space and Defense, Industrial, Components and Medical Devices. Since Moog is a publicly traded company, they also have a board of directors, which consists of six members from local area businesses, and retired Moog executives.In recent years, Moog Inc. has made a move to diversify their corporate structure, adding minorities and women to an industry once dominated by white males. Another move Moog has made to their corporate structure was the recent addition of John Scannel as CEO, and at only 49 years old, he is one of the younger CEO’s in the industry. The addition of minorities and the appointment of a younger CEO, Moog is preparing themselves for the future and showing that good ideas and leadership can come from any race, gender, or age.Employee Relations PolicyMoog has an outstand record of employee satisfaction, and they boast of a “supportive culture where people feel free to make their own decisions.” They credit this culture with the reason they have as many good products as they do, and how they continue to build upon their product line. As a whole, Moog has been growing, and in the past 10 years the number of employees has risen from 4,700 to almost 11,000. They are also above the industry average as far as tenure for their CEO, formally Robert Brady who had 47 years with the company. Their other top executives also have 30, 34 and 47 years with Moog. Moog has been named 3 times to the “Top 100 companies to work for,” most recently in 2009. With a forward thinking culture, and long tenured executives, Moog has shown how stable a company they are, and will continue to be.Figure 6Prepared by B. Holmes with information from State of the IndustryMoog Inc. can be put into many different industries, however, aerospace and parts manufacturing encompasses a majority of Moog’s business. As a whole, the aerospace and parts manufacturing industry is very competitive and there are many small companies competing for the business of large companies such as Boeing, Lockheed Martin and Raytheon. Along with contracts for large companies, many companies in the industry compete for government and defense projects. As a whole, the industry is competing for their share of $175 billion and is expected to grow annually by 5%. Demand in the industry is driven by air travel and military budgets. Aircraft manufacturing accounts for about half of industry revenue; aircraft engines and other parts for about 40 percent; and missiles and space vehicles for about 10 percent. The US aerospace manufacturing industry faces increasing competition globally, primarily seen from Airbus, Boeing’s major competition.The recent end to NASA’s shuttle program has hit the industry hard, losing a portion of the $196 billion that had been spent over the programs lifetime. However, smaller programs have been surfacing such as Redbull’s recent “space jump” by Felix Baumgartner. With the success that followed the “space jump,” the industry is expecting other companies to follow in the footsteps of petition AnalysisMoog’s main competition consists of Mettler-Toledo International, Applied Industrial Technologies Inc., and HNI Corp, all of which fall into aerospace parts manufacturing. Along with their main competitors, there are roughly 1,300 businesses competing for their share of $175 billion. Of their main competitors, Moog sits on top as far as revenue ($2.47B compared to $2.3B, $2.3B and $2.0B), assets and market share. However, of their main competition, Mettler-Toledo International has a much larger market cap and is more well-known on the NYSE, trading at over four times the price of Moog stock.Aside from domestic competition, Moog also faces international competition from manufacturing companies in China, Russia, Japan and India. This international competition comes from countries that are recently able to produce a similar product at a lower cost. Being able to manufacture parts at a lower cost is not the only reason for the increase in international competition. The addition of international competition for the industry they provide to, has given rise to more international parts manufacturers. Figure 7Moog’s Top Competitor Source: on the research performed, Moog Inc. is an excellent company for graduating Medaille students. The growing number of employees in an industry that predicts constant growth will assure a stable career with a company that continues to diversify and stay relevant in an ever changing economy.ReferencesMacAyea, John. (2013). Moog Inc. Retrieved from Medaille College Library Web site: Moog Inc. (2013). About Moog. Retrieved from Inc. (2013). . Retrieved from Medaille College Library Web site: ................
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