Fortune 500 Analysis

Lockheed Martin Corp.

Strategic Management
Group Project
Introduction and Overview-

Lockheed Martin Corp. is a global security and aerospace company principally engaged in the research,
design, development, manufacture, integration, and sustainment of technology systems and products.
The Company also provides a range of management, engineering, technical, scientific, logistic, and
information services. Lockheed Martin serves both domestic and international customers with products
and services that have defense, civil, and commercial applications, with the principal customers being
agencies of the United States Government. Lockheed Martin Corp. was formed in 1995 by combining the
businesses of Lockheed Corporation and Martin Marietta Corporation. Lockheed Martin is a public
company listed on the New York Stock Exchange (LMT).

http://bi.galegroup.com/essentials/company/420432?u=mlin_c_nichols

Organization Chart-

http://www.theofficialboard.com/org-chart/lockheed-martin
Mission Statement-

We solve complex challenges, advance scientific discovery and deliver innovative solution to help our
customers keep people safe and provide them essential services.

http://www.lockheedmartin.com/us/who-we-are.html

SWOT Analysis-

http://advantage.marketline.com/Product?pid=2640761E-E6A0-4777-8F90-
C232BBE4C541&view=SWOTAnalysis
Stakeholder Analysis-
Internal-
Marilyn Hewson- CEO
Bruce Tanner- CFO
150,000 employees
Subsidiaries of parent company- http://advantage.marketline.com/Product?pid=2640761E-E6A0-4777-
8F90-C232BBE4C541&view=LocationsSubsidiaries

External-
U.S. Government/Military
N.A.S.A.
Foreign Countries
U.S. Market- big company so if their stock goes down market could be affected

Five Forces Analysis-

Supplier Power-

Lockheed has monopolistic characteristics as a supplier there are few suppliers for
aeronautics, electronic systems, information systems and global solutions, and space systems.. This
gives them a large amount of power over their customer not easy to switch from Lockheed to another
supplier Since there are very few suppliers like Lockheed and the need for their products is imminent,
they have a lot of supplier power.

Buyer Power-

Government accounts for 79% of Lockheed revenue. Government is very powerful and could
potentially drive prices down, but they are also wealthy and can afford. Buyers dictate companies
operations, if U.S. needs more aeronautics and less information systems that would dictate Lockheeds
manufacturing.
Threat of New Entrants-
Not a major threat due to high barriers to entry. Lockheed has a strong reputation which is
valuable especially when manufacturing planes. Lockheed has contracts with government which will not
likely be terminated for other competitors.

Threat of Substitute products or services-

Not a big issue because the contracts that Lockheed holds with the government will last for a
long time and are hard to get out of.. Unlikely government will find substitute for Lockheed
products.. Patents on Lockheed products do not allow for competitors to create substitutes

Intensity of Competitive rivalry-

Major competitors are also large corporations (Boeing, UTC).industry is in a mature stage so
most growth will come from taking market share from competitors. Competitive advantage comes
from cost savings because competitors bid for contracts

Financial Analysis-

Ratios

http://www.mergentonline.com/companyfinancials.php?pagetype=ratios&compnumber=5271&period=
Annuals&dataarea=BS&range=3&currency=AsRep&scale=AsRep

Income Statement
Balance Sheet

Strategic Issues and Opportunities-

One of the most recent opportunities that Lockheed Martin has strategically designed is their
acquisition of Sikorsky Aircraft in late July of this year. The Sikorsky acquisition fits naturally into
Lockheed Martins portfolio of world-class aerospace and defense products as well as technologies. The
areas within Lockheeds portfolio that they are seeking to expand their development are in Sikorskys
core business functions of helicopter production and sustainment. Together they will have the capacity
to offer helicopter solutions to Lockheeds global customers while accelerating their pace of innovation
and new technology development.
Purchased Sikorsky Aircraft for $7.1 Billion, 20th July 2015.
Plans to align Sikorsky under the Lockheed Martin Mission Systems and Training (MST)
business segment.
Currently partnered on a number of critical programs including: VH-92 Presidential
Helicopter; Combat Rescue Helicopter; and the Naval MH-60 Helicopter.
Sikorsky Aircraft had 17,000 employees at the time of the acquisition.

On the strategic issue side of Lockheed Martins success; the aerospace, defense product and
technology industry is often exposed to many unidentified threats. The largest at hand is Lockheeds
over dependence on the United States Government, relying on one customer manipulates their ability
to grow. Another major area that Lockheed struggles with is cost efficiency, however, this comes with
the territory of being the world leader in aerospace technology and defense. Cost efficiency an
innovation and development do not necessarily go hand-in-hand. But beyond all other strategic issues
facing Lockheed Martin one stands supreme above all. Lockheed Martin holds the number one US
ranking for federal misconduct. Paired with their high turnover rate, not only does this negatively affect
the companys reputation, but it also makes them extra susceptible to internal and external threats.
Malicious behavior by employees or unintentional human error could drastically affect not only the
company and their ability to remain an industry leader, but it could also have negative repercussions to
the safety of our nation and Lockheeds many foreign consumers.
Deterring cyber attacks.
 Cost efficient development
Minimize or eliminate inappropriate use of computer systems by employees or former
employees.

PRN Newswire - Lockheed Martin to Acquire Sikorsky Aircraft and Conduct Strategic Review of IT and
Technical Services Businesses
http://www.prnewswire.com/news-releases/lockheed-martin-to-acquire-sikorsky-aircraft-and-
conduct-strategic-review-of-it-and-technical-services-businesses-300115382.html