Lockheed Martin SWOT Paper

1438 Words Nov 23rd, 2013 6 Pages
July 27, 2013
Bus-421 Strategic Management

Executive Summary

Given the likelihood of huge cuts in the procurement of military equipment by the U.S. government over the next 10 years, recommend to the CEO of Lockheed Martin how the company should prepare for the loss of its most important customer.

The following is a summary of the challenges and issues facing Lockheed Martin Corporation as the company and Marillyn Hewson, the CEO, face cuts to their revenue by the United States Department of Defense, which accounts for 83% of their total revenue. Their challenge is to maintain the profitability and integrity of the company. This report will discuss the three key issues facing Lockheed Martin, which are; the U.S
…show more content…
Their strategies for growth and continuing to improve on customer service will position the company for a further competitive advantage in the industry.
One way to analyze and get a better understanding of how these U.S government defense cuts would impact Lockheed Martin’s bottom line, is to look at what systems are working and what are the challenges they face. A SWOT analysis will allow us to do this.

SWOT analysis

Strengths
A good business relationship with the United States Department of Defense
Consistent financial performance
Recent contracts with foreign governments
Many contracts are effective for years, ensuring future revenue
Employee retention programs
High Research and Development budgets to maintain competitive edge
They are a well known and respected company

Weaknesses
Majority of revenue is from global governments
U.S government is 83% of total revenue

Opportunities
Rising defense spending worldwide because of growing threat from terrorism

Threats
Decreased U.S government spending
Competition from other leading manufacturers
Subject to changes in U.S regulations

The
Open Document