...Business Analysis - Part I MGT/521 September 20, 2012 Business Analysis - Part I This paper describes the results of an examination of L-3 Communications Holdings, Inc. The examination identifies their wants/needs and describes how well the company fulfills those needs. It also includes an analysis of L-3’s strengths, weaknesses, opportunities, and threats (SWOT), and finally, uses that analysis as a basis to form a recommendation for holding the stock as a position in an unnamed mutual fund. Company Overview L-3 Communications Holdings, Inc. (NYSE:LLL) is a Fortune 500 company with reported sales of $15.2B in 2011. Founded in 1997, L-3 maintains headquarters in New York with global locations, including the United Kingdom (UK), North America, Europe, Middle East, Southeast Asia, and Australia. The company is primarily a government contractor in command, control, communications, intelligence, surveillance, and reconnaissance systems (C3ISR). Its services and products also include aircraft maintenance, aircraft modernization, and government services. L-3 also provides numerous electronic systems used in both military and commercial applications. The company has four distinct business segments - Electronic Systems (ESS), National Security Solutions (NSS), Aircraft Modernization & Maintenance (AM&M), and C3ISR. L-3 Business Segmentation Each business segment delivers products and services specific to its market. A brief overview of each segment follows...
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...choice for the employees and to attract the talent from across the borders. And as Lockheed martin had leading in its technology in 20th century they much contribute like they were there when the first man landed on moon and they also help to explore this universe so if they don’t do their jobs then that will lead to the bad thing were start happening in this world. As Lockheed Martin was the merger of two best leading technology companies both had rich history in their technological field and as Lockheed and martin started innovation by developing boats clipper lighting fighter and missiles and then in 1990 Lockheed’s produce world best and innovative aircrafts F16 fighter. The company also contributed toward defense related products and ranked 32nd among 500 largest industries and the give jobs to 170000 people in their state and about 5500 from international market. And also operated their business in several states. Their business was divided into six categories SPACE and strategic missile electronics energy and environment and global telecommunication. The core ambition of the company was to be the world’s leading technological sector by giving the best values to their customer and best developmental opportunities to their internal customer. In cold war companies were focused on achieving their goals by leading in technological sector once the contract...
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...California. The company has since then evolved into a $600 million dollar company (Ducommun Incorporated, n.d.). In the early years of the aerospace industry, Ducommun Incorporated provided aircraft aluminum to aircraft makers. The company has completely evolved – there is no semblance of what used to be a hardware store. Today the firm is a premier provider of engineering and manufacturing services in the areas of defense, aerospace, mining, the petroleum industry and the medical field. Ducommun Incorporated has three major divisions: Ducommun Aero Structures (DAS), Ducommun LaBarge Technologies (DLT) and Ducommun Miltec. Together, these three units generated over $747 million in revenue for fiscal year ended 2012 and returned an EPS of $1.55 to their shareholders. As part of the aerospace and defense industry and the electronic manufacturing services, Ducommun is still in a mature life cycle. However, due to the ever-changing technological world we live in, the leadership team has strategically positioned the firm into a growth life cycle through expansion and acquisition. Economic uncertainty and slowing global growth for some aerospace and defense products products has lead the industry executives to seek consolidation, expansion into new geographies, and new product development outside the aerospace and defense industry (Aerospace &...
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...Porter’s Five Forces Analysis Lockheed Martin’s recent financial performance suggests that the organization has strategically navigated the Aerospace and Defense Industry. The corporation’s strategy—infiltrating its core competencies in its activity systems and simultaneously differentiating itself from its competitors—propelled Lockheed Martin’s achievements. Nevertheless, organizations that sustain long-term profitability, analyze all five competitive forces—customers, suppliers, aspiring entrants, and substitutions (Porter, 2008). In addition to considering existing competitors, Lockheed Martin must assess the risk that a new competitor may invade the market and capture their market share. New entrants bring new capacity and increase...
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...company to succeed is to understand both the internal and external environments. The companies must understand these environments and apply the knowledge to a strategy that will give the company a competitive advantage. The competitive advantage must be measured to fully understand how the strategy is being implemented and to what extent the strategy is creating a competitive advantage. Northrop Grumman (NG) uses environmental scanning to understand the market environment. This helps establish a strategy that will hopefully create a competitive advantage. Internal and external environmental scan Northrop Grumman’s internal environment is very strong. The company has positioned itself well to capitalize on the emerging trends in the national defense market place. Northrop has developed new technologies and internal infrastructure to sustain new business in the new technologies departments. NG is also strong in personnel, although there is a troubling trend emerging. NG has a long history of dedicated workers but has failed to retain or attract new talent. There is a growing gap between the experienced knowhow and the new employees. NG has a large gap in the middle of the workforce. The majority of the work force is either five years from retirement or has less than five years with the company. Therefore the “local knowledge” that is essential for continuing seamless operations as the older generation moves on is failing to be passed down to the newer generation of employees. NG has...
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...ePAPER ON “SUPPLY CHAIN MANAGEMENT IN AEROSPACE INDUSTRY” By- GROUP A3 PGPM1013-006- Anshul Maheshwari PGPM1013-043- Rashmi Ranjan Padhi PGPM1013-060- Vamsi Korlepara PGPM1013-082- Keshav Mishra TABLE OF CONTENTS 1. Cover Page………………………………………………………………………………………………….………….………………………………...1 2. Table of Contents………………………………………………………………………………………….…………………………………………..2 3. Executive Summary………………………………………………………………………………………….……………………………………… 3 4. Introduction……………………………………………………………………………………………………….………………………………………4 5. Aerospace Supply Chain Process………………………………………………………………………….…………………………………….5 6. Description of 5 stages………………………………………………………………………………………….…………………………………..6 7. Global Aerospace Supply Chain……………………………………………………………………………….…………………………………7 8. Sourcing in Aerospace Industry………………………………………………………………………………………………………………8-9 9. Need for Supply Chain in Aerospace Industry……………………………………………………………………………………..10-11 10. Major Aircraft components………………………………………………………………………………………………………………………12 11. Supply chain of Boeing components world wide………………………………………………………………………………………15 12. Criterion for adopting Supply Chain strategies…………………………………………………………………………………….17-18 13. Who does it?.......................................................................................................................................19-20 14. What technology enablers are used?........................................................................................
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...AEROSPACE MANUFACTURING INDUSTRY [pic] GM 105 Professor Hatton December 11, 2009 ___ Report Completed By: Sarah Gregory Leslie Horton Staci Miles Lauren Rolson Marcin Skubala TABLE OF CONTENTS INTRODUCTION 4 BACKGROUND 4 DOMINANT ECONOMIC INDICATORS 5 1. Market Size 5 2. Scope of Competitive Rivalry 6 3. Number of Companies in the Industry 7 4. Customers 8 5. Ease of Entry/Exit 8 6. Technology/Innovation 9 7. Product Characteristics 10 A. Government 10 B. Commercial Aircraft 10 8. Scale Economies 11 A. Internal 11 B. External 12 9. Experience Curve Effects 12 10. Capacity Utilization 13 11. Industry Profitability 13 SIX FORCES OF COMPETITION 14 1. Threat of New Entrants 14 2. Bargaining Power of Suppliers 16 3. Bargaining Power of Buyers 16 4. Threat of Substitute Products/Services 17 5. Intensity of Rivalry among Competitors 17 6. Relative Power of other Stakeholders-Unions 18 COMPETITIVE POSITION OF MAJOR AEROSPACE COMPANIES 18 COMPETITOR ANALYSIS OF MAJOR AEROSPACE COMPANIES 20 Boeing Co. 20 Lockheed Martin Corporation 21 Northrop Grumman Corporation 23 Raytheon Co. 24 Other Manufacturers 25 Airbus 25 United Technologies 26 KEY SUCCESS FACTORS 26 Reducing Costs 26 Maintaining Access to Foreign Markets 27 INDUSTRY PROSPECTS AND OVERALL ATTRACTIVENESS 29 Factors Making the Industry Attractive 29 Factors Making...
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...components Abstract Counterfeiting has a long and despicable history, ranging from art and literature to manufactured goods. Unlike other industries, counterfeiting in the aerospace industry may have life or death Consequences. We take the problem seriously. Thus, all stakeholders from industry and government must work together to effectively reduce the introduction of counterfeit parts into the aerospace supply chain and minimize their impact. The introduction of counterfeit parts whether they are electronic, mechanical or other adversely affects government, industry, consumers which includes National security or civilian safety issues and costs of enforcement. Counterfeit parts are an escalating global supply chain challenge where a single occurrence represents widespread risk to product cost and quality, human safety, and national security. Aerospace and defense products are targets for counterfeiters because the systems are intended for use over extended time, leaving them vulnerable to obsolescence of parts, materials, subsystems and technologies. As the time of system use increases, a substantial number of the parts required to support aerospace and defense products are no longer available from the original equipment/component manufacturers (OEMs/OCMs) or through franchised or authorized suppliers. The aerospace and defense product manufacturer and government, however, both take on risks when acquiring parts and materials through distribution channels other than...
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...FIN 6406 A Financial Ratio Quarterly Trend Analysis of: The Boeing Company BA Listed on New York Stock Exchange Prepared for: Dr. Deanne Butchey Corporate MBA Program Florida International University By: Justin Papcun Computations Financial Trend Comparison Liquidity: The Boeing Company financial data shows that the company is in place to settle up its obligations in the short term business strategy. As it appears right now, 1.20 is the current ratio and the company’s assets offset its liabilities by 1:2. The quick ratio of 0.37 is lower than the current ratio due to the variance from competition forming from the industry average. The current ratio posted a value of 1 or above consistently, but the same cannot be said for the quick ratio which posted below the value one for Q1-Q4. This decline comes from a recession, a decrease in airline traffic, and the instability of fuel cost. Despite this the current ratio was able to increase value while the quick ratio decreased while still posting a positive number. This was due to an inventory and production decrease. In current liabilities to inventory sector, the numbers did not suffer. In Q1-Q4 Boeing did not post a value below 1, varying between 1.13-1.21. The cash ratio saw numbers between 0.13 and 0.14 for Q1-Q3, and increasing to a 0.21 for Q4. Assets Utilization: This asset ratio shows Boeing is competently generate profitable sales revenues by properly using investments. Looking at the ratio turnover...
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...Analysis Northrop Grumman is one of the world’s major defense contractors. Northrop Grumman Corporation information services and solutions to a variety of customers internationally. Its Information and Services business provides various command, control, communications, and intelligence support to United States government intelligence community, supports the U.S. integrated Missile Defense system and the Intercontinental Ballistic Missile Program, and offers infrastructure management, training and preparedness, and logistics management services. The Aerospace business designs integrated systems in the areas of battle space awareness, command and control systems, and more. The Electronics business produces high performance sensors, intelligence processing, navigation systems, and controls for shipping. The ships business designs and constructs nuclear powered aircraft carriers. The visualization of the company is to be the most trusted technologies and systems supplies that guarantee sanctuary. A business analysis of Northrop Grumman Corporation, a global aerospace and defense technology company is presented, focusing on its strengths, weaknesses, opportunities and threats (SWOT) faced. Strengths include its strategically balanced portfolio of products and revenue streams. Weaknesses include its dependence on a single customer. Opportunities include the positive outlook for the industry. Threats include the declining defense spending by the U.S. government. Northrop Grumman primary...
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...different fighter jets for the United States. A MarketLine SWOT Analysis stated that "The sequestration of appropriations in 2013 imposed by the Budget Control Act of 2011 (Budget Act) began in March 2013. The budget calls for the termination of a few programs which include C-17 Airlifter, F-22 stealth fighter, Future Combat Systems, Multiple Kill Vehicle, Kinetic Energy Interceptor, Airborne Laser, Combat search and rescue helicopter, and Presidential helicopter"(SWOT,2014). The termination of those programs have directly affected Lockheed Martin in terms of production. Issues: Future Lower quality of new employees Lockheed Martin is in the global defense, aerospace, and information technology industries, and after conducting extensive research, it is clear that those three industries could be changing in the future. "The Defense Department budget cuts will make the hiring hurdle...
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...A comparative analysis of Airbus and Boeing 7 5.1 Airbus Group 7 5.2 Boeing 11 6.0 Examination of Key Stakeholders and Information Disclosure 14 6.1 Customers 15 6.2 Suppliers 16 6.3 Employees 16 6.4 Shareholders 17 7.0 Way Forward 18 8.0 References & Bibliography 19 1.0 Introduction to the Report This Consultant’s report has been compiled based on information gathered from the annual reports and financial statements of The Boeing Company and the Airbus Group (formerly EADS) for the year 2012. While analyzing the level of disclosure of both companies, this report aims to shed light on industry standards and critically examine whether the needs of key stakeholder groups have been sufficiently addressed in the chosen annual reports. Further suggestions for the improvement of these reports are also made in order to increase benefits for named stakeholders. As the complexity of business and capital markets increase, companies are required to manage risk and uncertainty in order to satisfy stakeholder needs. The role of transparent and clear financial reporting disclosure has heightened importance in the present business environment, providing useful information for decision making. Investors, lenders,...
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... Location decisions such as these are special events that require careful attention to many conflicting strategic, operational, financial and intangible factors that can set the stage for either great success or fantastic failures. these issues will be one of the biggest challenges facing the industry in the coming years. This whitepaper explores the key drivers impacting the aerospace industry, the process for developing a comprehensive location strategy in response to industry expansion, and these critical locations factors that lead to location strategy success in the Southeast U.S.: Global commercial aircraft orders have increased six percent in 2011, with accelerating demand for new, more fuel efficient and technologically advanced aircraft. According to a number of studies, the industry will have to increase production by 45 percent to meet demand in the coming year to address the backlog orders. This is evident by the recent announcement by Airbus to double its current $12 billion spend on U.S. suppliers. The demand issues up and down the supply chain will place greater pressure on program management, manufacturing capability and capacity, cost and the greening of aerospace products. Collectively, Strategic Shift in Supply Base Location...
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...Executive Summary- Boeing Although there are high barriers to entry into the aerospace industry, once inside the industry, there is even higher rivalry. Boeing entered the aerospace market just a few years after the Wright Brothers made their first flight. At this point, the industry was growing very quickly. There were so many innovations that allowed several new models of airplanes to come out every year. However, now, almost one hundred years later, the aerospace market has matured and growth has slowed down. The pace of new airplane technology was slowing down and its competitors were catching up. Boeing was a leader in technology and new models of airplanes, therefore, their prices were higher than some of the competition. The government was giving subsidies to Airbus to develop new aircrafts. Most analysts believed that the airplane manufacturer segment of the industry was about to enter an era of unprecedented price competition, “one that would lead Boeing to disaster unless it drastically cut costs.” However, the cost cutting measures that Boeing had implemented had caused Boeing to take a $178 million loss in 1997- its first red ink in 50 years. In response to this, Boeing fixed the production issues stemming from their cost-cutting measures, and decided to focus on where their customers are going and how they can help them be successful. This led to the creation of the e-Enabling Advantage. The problem that Boeing faces is whether e-Enabling could...
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...2012 Cassandra Molavrh Boeing Innovation Strategy Innovations are a fundamental prerequisite for competitiveness. The economic crisis forced most businesses to conserve funds in various operational areas. Innovation strategy in any business or industry involves aligning the product life cycles in the company with the various research and development activities. Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. A top United States exporter, the company supports airlines and United States and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and, performance-based logistics and training (Boeing, 2012). Boeing’s Background In the ever-changing business environment, organizations are constantly seeking ways to diversify products and revenue sources, create the best organizational structure, and foster productive work environment cultures through innovation strategies. Boeing is a leading innovator in the aviation industry. The organization faces industry-wide challenges including increasing fuel costs, price-conscious customers, and increased demand for convenient air travel to a multitude of destinations. Innovative thought leadership is the key to “thinking outside the box” and identifying alternative...
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