Fortune 500 Company

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History The Fortune 500 Company chosen for this paper is the Lockheed Martin Corporation. Lockheed Martin is a global securities and information technology company headquartered in Bethesda, MD. Lockheed Martin employs roughly 126,000 people in several facilities throughout the world. The company's main business is in research, design, development, manufacturing, integration and sustainment of advanced technology systems, products and services. Lockheed consists of four operating units, or business areas, which consist of Aeronautics, Electronic Systems, Information Systems and Global Solutions, and Space Systems (LMC, 2011). Lockheed Martin Corporation was created in 1995 from a merger of two major global technology companies, Lockheed…show more content…
Though revenues have increased by 3.8 percent over the 2009 revenues of $45,189 million, Lockheed Martin's ranking has dropped from 44 in the 2010 Fortune 500 list (CNNMoney, 2011). So far in 2011, Lockheed Marin is positioned to have a great year. Its 2011 third quarter report shows net sales at $12.1 billion, compared to the $11.3 billion in third quarter 2010. Continuing operations also grew 19 percent to $665 million, compared to $557 million in 2010. The CEO, Bob Stevens, stated that this strong third quarter is the result of the company's focus to aggressively reduce costs while still delivering value and support to its customers. Though there is still challenging global security and economic issues, Stevens expects continued growth for 2012 (LMC, 2011). Economic Forces Lockheed Martin Corporation relies heavily on defense contracts from the U.S. Government. In fact, 84 percent of the company's net sales were made through being a prime contractor or subcontractor for the U.S. Government. These sales come from both the Department of Defense (DoD) and non-DoD agencies. The next largest area of revenue is from foreign governments that make up 15 percent of net sales. The remaining net sales come from commercial or other customer sales. A slow economy could cause decline or reprioritization of funding for the U.S. defense budget. This is also true for
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