Lockheed Martin Case 2011

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Executive Summary
Lockheed Martin is a leading security and defense company based in Bethesda, MD with operations that span the globe. Lockheed Martin experienced a positive turnaround under new CEO Robert Stevens’ leadership, and is now entrenched as a leading competitor in the Aerospace and Defense (A&D) industry. They maintain an extensive business portfolio and continue to increase shareholder value. However, recent issues with contract mismanagement and cost overruns involving the government F-35 program leave a negative outlook on their operations. They also face increasing pressure to acquire and retain key employees from a diminishing talent pool. Government budget cuts threaten to hurt revenues, thus making it important for
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Efficient buildings, where companies such as Lockheed Martin have converted their buildings to be efficient in saving energy, which is a way to cut costs in a declining economic environment, emphasize stewardship of the environment. Europe has enacted a “Clean Sky” initiative, which is a large research project with the goal of providing a step in environmentally friendly air transport technology.
Technology is an important facet in the industry, and therefore has a high emphasis. Cutting edge technology has driven rising costs for consumers. This also causes R&D spending to be fairly high. Because of this, Defense companies often seek to find commercial use for new technology.
Forecasted Defense trends indicate industry adjustment to reduced government defense spending. Because companies have overlooked operational efficiency and relied heavily on government spending, efficiency will now become a focus with decreased spending. Companies will also attempt to explore new markets, such as Lockheed Martin’s secured contract with Israel for future purchase of F-35’s, as well as entering into related markets to diversify revenues. Increased competition is expected due to consolidations among smaller companies in an effort to become more competitive (Thompson).

SWOT Analysis Our SWOT (Appendix 3) focuses on the analysis of all components of Lockheed’s business and industry and the importance of these factors weights in the IFAS and EFAS. The IFAS score
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