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Hello viewers. This is an animated case study of the company "White Star Line".The famous company that has built, and sadly lost the great Titanic 2 00:00:10,100 --> 00:00:17,100 This was a highly prominent British company. Even today it is most famous for the tragic and ill-fated vessel, Titanic and its sister ship Britannic. 3 00:00:17,400 --> 00:00:26,100 The company was founded in Liverpool, England by John Pilkington and Henry Wilson focusing on UK-Australia trade. Initially, it had a fleet of charted sailing ships, RMS Tayleur, Blue Jacket, White Star, Red Jacket,Ellen,Ben Nevis, Emma, Mermaid and Iowa
Tayleur was the largest of all the ships in those days. It wrecked on its maiden voyage to Australia at Lambay Island, near Ireland
It is said that this fate of Tayleur haunted the company for years.
The original White Star line merged with two other small lines, Black Ball and Eagle.
This did not prosper and White star broke away. It concentrated on Liverpool to New York service.
.The investments for new ships were heavy and were financed by borrowing from a bank.
But, the company’s bank, the royal bank of Liverpool, failed in October 1867
This left White Star with an outstanding debt of 527,000 pounds,
which as of 2012, would be 34,029,969 pounds
In 1868, Thomas Ismay, a director of the National Line, purchased the house flag, trade name and the goodwill of the company for 1000 pounds.
His intention was to operate large ships on North Atlantic service.
He, later, partnered with Harland and Wolff, a company that builds ships.
They received their first order in 1869. As the first ship was being commissioned, Ismay formed Ocean Steam Navigation Company to operate the steamers under construction.
White Star began operating again in 1871 between New York and Liverpool. .
The company suffered a massive early disaster in1873 with the sinking of the SS Atlantic and near Halifax, Nova Scotia.
The crew was blamed for serious navigational errors by the Canadian inquiry.
In the late nineteenth and early twentieth centuries, millions of people emigrated from Europe to the United States and Canada.
White Star was among the first shipping lines to have passenger ships with inexpensive accommodation for third-class passengers, in addition to places for higher paying first- and second-class
The Cunard Line was the chief competitor to White Star. In response to Cunard's Lusitania and Mauretania, White Star ordered the Olympic class liners
Olympic, Titanic, and Britannic. While Cunard was famed for the speed of its ships, the Olympic class were to be the biggest and most luxurious ships in the world
Titanic sank on her maiden voyage, while Britannic was requisitioned by the British government before she was fully fitted, and used as a hospital ship during World War I
Britannic sank after hitting a mine on 21 November 1916..
In 1927 the White Star Line was purchased by the Royal Mail Steam Packet Company (RMSPC), making RMSPC the largest shipping group in the world
RMSPC ran into financial trouble, and was liquidated in 1932.
A new company, Royal Mail Lines Limited, took over the ships of RMSPC and its subordinate lines including White Star.
In 1933 White Star and Cunard were both in serious financial difficulties.
In 1933 the British government agreed to provide assistance to the two competitors on the condition that they merge their North Atlantic operations
The agreement was completed on 30 December 1933. The merger took place on 10 May 1934, creating Cunard White Star Limited
White Star contributed 10 ships to the new company while Cunard contributed 15 ships
The White Star Line's Head Offices still exist in Liverpool, standing on James Street within sight of the more grandiose headquarters of their rivals the Cunard Building.
The White Star flag is raised on Cunard ships every 15 April in memory of the Titanic disaster.
As an Entrepreneur, one can notice how important to take good decisions and properly maintaining the financial accounts
These are crucial and could lead to many disasters if neglected. �