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Group 03 History Landmarks Strengths Weaknesses
- 1. Group 03
- 3. INTRODUCTION
- 4. History (Pioneers Loughhead Brothers, Glen L. Martin)
- 5. Significant Landmarks 1945 - B-29 Heavy Bombers 1959 – Lockheed’s Agena 1940’s - Skunk Works
- 6. 1984 - Manned Maneuvering Unit (MMU). 1990 - SR-71 – 3451.72km/h "Houston, Tranquillity Base here. The Eagle has landed."
- 7. Vision Statement “Do What's Right”“Respect Others”“Perform With Excellence”
- 9. STRENGTH National & Global Operations LMT's Strong Product Portfolio Customer Base Stability Barriers to Entry Government
- 13. THREATS Isolationist Mentality Volatile Commodity Prices Boeing Strike Defence Spending
- 16. POLITICAL Lobbying for Contracts Political Donations Influence on Policy Decisions Merger & Subsidies
- 17. ECONOMIC Market Scope: 80% Business with US. (26% Air Force, 19% Navy, 10% Army, 16% Civil Government / Homeland Security, 7% other) 16% International Customers 4% Domestic Commercial Customers International Customers
- 18. SOCIAL & ENVIRONMENTAL Toxic Waste Materials Racial Discrimination Strikes
- 19. LEGAL Lockheed Martin is no stranger to litigation and controversy.
- 20. Technology(Where do we begin?!)
- 21. CONCLUSION Restraint over Massive Power. Diversity! Massive Opportunity in IT Solutions & Homeland Security & Transportation. Following Acquisition Spree!
Editor's Notes
- Lockheed Martin is an American global aerospace, defence, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995.Itis one of the world's largest defence contractors, currently employing more than 1,40,000 people worldwide.Lockheed Martin operates in four business segments. These comprise, with respective percentages of 2009 total net sales of $45.2 billion,Aeronautics (27%), Electronic Systems (27%), Information Systems, & Global Solutions (27%), and Space Systems (19%). In 2009 US Government contracts accounted for $38.4 billion (85%), foreign government contracts $5.8 billion (13%), and commercial and other contracts $0.9 billion (2%).
- Lockheed and Martin Marietta had evolved from relatively small aerospace manufacturers into titans of the global defence industry.Glen L. Martin and the Loughhead brothers, Allan & Malcolm join the ranks of the world’s aviation pioneers in 1910’s with their own maiden voyages.Throughout the 1920’s several developments were made in advanced aircraft instruments, including hydroplanes, artillery attachments, bomber loads, compasses, air speed indicators, altimeter, etc. These inventions were utilized during World War II and many more wars too come.In 1926, after the demise of the original company, Allan Loughhead officially forms the Lockheed Company, the name is spelled phonetically to alleviate earlier problems with pronunciation.
- The development team in the early 40’s adopted the name ‘Skunk Works’. Numerous projects were taken under in complete secrecy. Fighter Jets were the main cause for concern.In 1945, two B-29 heavy bombers built by Martin dropped bombs on Hiroshima and Nagasaki ending the Pacific conflict.In 1959, Lockheed’s Agena spacecraft puts America’s first Earth-oriented satellite into orbit.
- 1969 - Neil Armstrong's first steps on the moon to the latest space exploration, Lockheed Martin and it’s heritage companies have contributed to nearly every part of the space program. His first message from the moon was over an RCA communications system.In 1984, Man becomes a human satellite using Martin Marietta’s Manned Maneuvering Unit (MMU)1990 – The SR-71 breaks the speed record flying at an average speed of 2,144.8 mph (3451.72 km/h)
- We are committed to the highest standards of ethical conduct in all that we do. We believe that honesty and integrity engender trust, which is the cornerstone of our business. We abide by the laws of the United States and other countries in which we do business, we strive to be good citizens and we take responsibility for our actions.We recognize that our success as an enterprise depends on the talent, skills and expertise of our people and our ability to function as a tightly integrated team. We appreciate our diversity and believe that respect - for our colleagues, customers, partners, and all those with whom we interact - is an essential element of all positive and productive business relationships.We understand the importance of our missions and the trust our customers place in us. With this in mind, we strive to excel in every aspect of our business and approach every challenge with a determination to succeed.
- Strengths:1,000 facilities in 500 cities and 46 states throughout the U.S.; Internationally, business locations in 75 nations and territoriesProduct Portfolio:Aeronautics, reported approximately $11.5 billion in 2008 sales, includes tactical aircraft, airlift, and aeronautical research and development lines of business. Electronic Systems, reported approximately $11.6 billion in 2008 sales, includes missiles and fire control, naval systems, platform integration, simulation and training and energy programs lines of business.Information Systems & Global Services (IS&GS), reported approximately $11.6 billion in 2008 sales, includes C4I, federal services, government and commercial IT solutions.Space Systems, reported approximately $8 billion in 2008 sales, includes space launch, commercial satellites, government satellites, and strategic missiles lines of business.As a global security and information technology company, the majority of Lockheed Martin's business is with the U.S. Department of Defense and the U.S. federal government agencies. They are the largest provider of IT services, systems integration, and training to the U.S. Government. Barriers to entry established by the government limits the amount of competition within a segment. Limited competition increases prices and margins for companies that are already in the industry. Companies wanted to participate in this business, must seek approval before competing. This can be a time consuming process.
- Weakness:Barriers to entry established by the government limits the amount of competition within a segment. Limited competition increases prices and margins for companies that are already in the industry. Companies wanted to participate in this business, must seek approval before competing. This can be a time consuming process. A low concentration of buyers gives them a lot of power during negotiations. This limits the ability of a manufacturer to increase their prices and margins by seeking the highest bidder for their product.Government contracts are highly volatile and demand on political action. These contracts can be large, which influences business development and future planning. Government contracts also supply other industries, like education, with money, which is then spend on education related investments. Those investments are also subject to the spending discretion of the government.
- Opportunity:Rising defense spending in the US and worldwide due to terrorist acts should help any company that specializes in security and warfare.Continued terrorism risk will bring additional benefits to aerospace and defense stocks. Security-related stocks will also benefit as the private sector invests in security.
- Threats:Isolationist Mentality is Sweaping the World Due to Prolong Wars Volatile commodity prices increase the risk to the company, since a sudden change in commodity prices can hurt profits and increase the chances of bankruptcy. It also makes long-term forecast more difficult and long-term investments to meet demand more difficult.Strike affect shares in the short term, but will provide additional revenue in the future. The strike delays orders for their product, decreases revenue and potentially annoys the customer enough that they cancel orders. A strike usually results in higher expenses for the company after it is resolved. Defense spending will have a direct impact on any company with limited other customers. Since defense spending is politically driven and often changes quickly, companies can not make the necessary long term planning required to efficiently build a business. This increases risk to the companies financial results and decreases their potential value.
- Four-basic Business Areas:AeronauticsElectronic SystemsInformation Systems & Global SolutionsSpace SystemsA matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms.Examples:The Lockheed Martin Tactical Aircraft Systems (LMTAS) was developed through such structure with the teams created from the Aeronautics department as well as the Electronics Systems Department.“Skunk Works” was such a team which under secrecy created and innovated many fighter-jets which were elite in their time, and to this day tracking location systems developed then are used in modern commercial aero planes today.
- Between 1998 and 2004, Lockheed Martin spent $55,373,840 on lobbying members of the US Congress and federal officials on legislation and regulations.Lockheed Martin’s strategic political donations were designed to favour candidates who have power to make favourable defense policy decisions.When Lockheed and Martin Marietta merged in 1995, taxpayers in the United States paid for the almost $1billion Lockheed Martin received from the Federal Government to cover the costs of related plant closures and employee relocations. Also through mergers there was lack of competition and monopolization of markets
- Lockheed Martin’s products are responsible for devastating consequences in many countries around the world. The corporation, which sells and has sold products to dozens of national governments, does not seem to be concerned that many of their products are involved in on-going conflicts and could be potentially used in catastrophic military exchanges.Examples include: the Israeli military in the Israel/Palestine conflict; Colombian government in the ongoing civil war; LockheedMartin products have been purchased by both India and Pakistan, two countries with nuclear capabilities, and a history of aggression towards each other.
- Weapons produced by Lockheed Martin have littered the world with toxic and nuclear waste, discarded fuel, chemicals and unexploded bombs.Lockheed Martin’s production facilities, past and present, have also inflicted damage on the land and people who lived and worked near these plants.Equal Employment Opportunity Commission (EEOC) sued Lockheed Martin in August, 2005 accusing the company of ignoring a black employee’s complaints of racial harassment and retaliating after he complained.A racist attack had taken place where 6 black men were killed, investigation found that Lockheed Martin permitted a racially hostile work environment for black employees at the plant to grow in intensity until the massacre took place.Many strikes have taken place within the companis life-cycle due to lack of consideration and efforts taken towards the employee satisfaction. Just recently (2003), 4000 workers at Lockheed Martin’s Fort Worth plant went on strike on April 14 in response to a contract proposal that included cuts in health-care coverage for production workers and increases in medical and prescription co-payments.
- In Fact,the corporation’s affection for providing bribes in exchange for contracts during the 1970s helped write anti-bribery legislation in the United States.Lockheed Martin has established a pattern of misdeeds and has been subjected to fines and been involved in a number of lawsuits related toViolations of the anti-bribery Foreign Corrupt Practices Act, Overcharging and submitting fraudulent claims to the Government of the United States,Selling US state secrets to other governments,wrongful dismissal of whistle-blowers.Delay in Scheduled Work-flows Practice of illegal and anti-competitive conspiracy.
- In terms of it’s contribution to the development in technology even an entire presentation dedicated to such wouldn’t be able to encompass the vast unending knowledge produced through this company.Where it is in advanced aeronautics, Information & Database Systems, Outer space Voyages, Interstellar Studies and god know what not, Lockheed Martin ranks ‘Uno's Grande’ (No.1). This was achieved through its policy of growth through acquisition and fierce competition within itself.Recently,Lockheed Martin Suffers Massive Cyber attack in the month of June, though the perpetrators couldn’t get past the security measures placed within the system, thus being caught within seconds of the breach.
- Their vision of becoming “the world's best advanced technology systems integrator” and their use of political connections and strategic donationshas brought them to the point where they are a major driving force behind developing many aspects of the United States Government’s information technology capacities. What this presentation shows, is that Lockheed Martin is working to bring high technology solutions to everything from a ballistic missile defence shield to software that will track US mail and distribute welfare cheques.The level of diversity means that Lockheed Martin is a major actor in everything from the development of potentially catastrophic weapons for space to he management of the livelihoods for some of the United States’ most marginalized people to contributing to the alarming rise in racial profiling in the name of homeland security. This seems unfathomable, yet it is an alarming reality.