HIST 1402 Lecture Notes - Lecture 3: Airbag, Tax Rate, Cash Flow
Document Summary
Anderson airbag (aa) was founded by douglas anderson in 1985 to take advantage of safety advances in automobile airbags and to capitalize on mr. anderson"s suspicion airbags would be ultimately mandated by the united states government. Mr. anderson began manufacturing aa"s auto airbag during the summer of 1986 in a facility that was once used to manufacture textiles. Growth was much slower than anticipated as the major automobile manufacturers chose larger, more establish companies for contract production. Further, mass production consistently drove down the costs of production, while significant competition narrowed profit margins within the industry. Aa managed to find something of a niche with smaller, specialty manufacturers, and by 1992, growth was slow but steady, providing sufficient cash flow for reinvestment in research and development of a next generation airbag. After years of research, aa developed a less expensive airbag that can be packaged into a smaller area.
