CASE ANALYSIS: LOCKHEED MARTIN Harvard Case Solution & Analysis

Case Analysis: Lockheed Martin Case Solution

1         Introduction and History of the company

            Lockheed martin is an aeronautical company which deals in different segments of the same industry. The company came into existence following a merger of $ 10 billion among Lockheed Corporation and Martin Marietta. However, this merger was done in 1995 and it is known as merger of equals.

lockheed case solution

lockheed case solution

            However, these business segments make this company a complete aerospace, defense and information security company.

            In addition, the company is headquartered in Bethesda, Maryland. On the other hand, the company is the world’s largest defense company and its CEO is the 28th highest paid CEO among the world’s 50 top most paid CEOs. In 1996,the company did a merger with Northrop Grumman due to the government’s control and rights which should be given to the company.

            Furthermore, a major chunk of the company’s revenue is coming from the military arm and equipment since in 2009, 74% of the revenue was accounted for the military arms and equipment.

On the other hand, the company also makes billion of revenue through government contracts as, the company has the most innovative and cost efficient solutions which makes it the government’s choice. The company sellsnumerous types of missiles, helicopters, jet fighters, and radar and space satellites to the government of America.

Moreover, the merger of equals the company is working in the industry for many years. The company also bought Loral corporation defense electronic and system integration business in 1996. However, the company won collier trophy a couple of times but recently the company has started to lay off its employees due to the cut in defense budget.

2         Problem Statement and Pre-mortem

The company is working in a good position in both terms i.e. strategically and competitively however, there are some potential threat and problems which are causing hurdles to the company’s business plan. The major problem is that the government is declining the defense budget and due to this, the company has to pay close attention to its cost structure.

Furthermore, the American government is trying to stop military operations and to call back their army from where they are working and due to this the military budget will also decrease which will ultimately hit the revenue of the company. However, there are very few contracts and so many companies are competing to gain those contract from the US government which is also causing trouble to the company.

Moreover, according to the Pre-mortem analysis, the analyst is assuming that the issues have lead the company towards failure and therefore, all the things will be discussed in a manner that the company will be able to revive from the situation

In addition, the controlling cost of the company is rising, while the company is facing intense competition and the international market risk is also rising due to changing technology and regulations across the world. In this study, the investigator will try to suggest the recommended actions and initiatives for the described problem and the study will also enable the reader to find out the final recommended strategy for the aforesaid problems.

3         Generic Environment

The company is operating in defense industry and many large and established players are already operating in the industry with having significant market share. Therefore, the company is operating in a more competitive environment which could affect the future goals and strategies of the organization.

The company is operating in such an industry, which demands greater technological advancements and chances of obsolescence of technology are also high as compared to the other industry, which could also affect the future decision of the company regarding organic and strategic growth,

In addition to this, the largest buyer of the products of the company is the US government and US government is planning to cut down its defense budget, which creates further threats for the organization regarding future business and corporate objectives......................

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