Assignment 1- An external audit
Aviation Strategy in the Global Context
ASSIGNMENT 1: An External Audit
AERO2408
Submitted by:
TerryAnne Ryan
Student ID: S3225163
RMIT SAMME-BPO70
Bachelor of Applied Science
(AVIATION)
Lecturer: [email protected]
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Assignment 1- An external audit
INDEX:
Page 1:Title Page
Page 2: Index
Page 3:Introduction
Page 4:Establishing Political,Economical,Social and Technological Events
Assumtion 1:Has shown a strong allegiance with the Australian Government and alliance with its policies
Assumtion 2: LMO has a strong focus within a Global context for the future development of its Business Strategies and platforms
Page 5: Assumption 3: Currently operating under a bilateral trade arrangement under the Obama Government
Page 5:Assumption 4: The Lockheed Martin Corporation seemingly at this point in time is operating in a less favorable environment often seen as Turbulent.
Page 6:cont
Page 7: Technology
Page 8: Technology
Page 9: Conclusion
Page 10:Conclusion
Page 11:References
Page 12: References
Page 13: References
Page:14 References
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Assignment 1- An external audit
Introduction
Lockheed Martin (LMO) is a Global Security and Aerospace Industry,
predominantly better known for its, “research, design, development,
manufacture, integration and sustainment of advanced technology
systems, products and service”(1)
The Corporation's sales for “2012 were US$47.2 billion”(2) With over 27
countries and associated alliances worldwide, the Australian Government
is one of them. Its customers are pre dominantly the US Government, US
Defence Forces, The Department of Energy and NASA. Although it now
has much capabilities to negotiate outside the more mainstream US
Government Departments.
Lockheed’s most famous for its Kelly’s Skunk Works. Which originated
from Research and Development prototype concepts, in 1950. It has since
become a registered trademark of the Lockheed Martin Corporation.
Originating from the platform for the discussions held in June 1943, with
the US Army Air Tactical Service Command (ATSC) showing an
expressed interest in “a new Jet Fighter to counter a rapidly growing
German Threat” (3)
Through a quick succession of talks and handshakes, the identification
and implementation of Kelly Johnsons famous 14 Basic rules, and
concepts. Establishing a “cultural mind set amongst the workers, of
making the impossible happen”(4)
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Assignment 1- An external audit
Establishing Political, Economic, Social and Technological Events and
Trends
Assumption 1:
Has shown a strong allegiance with the Australian Government and
alliance with its policies.
LMO is firmly established in Canberra and has an employee base of 750
staff.
Enabling LMO ability to establish a long term and meaningful
arrangement. Emphasizingwith its Strategic policies and in collaboration
with the Department of Defence Science and Technology Organisation
(DSTO). With a consolidation on a long term arrangement with DSTO,
enabling the future “in predictive logistics, trusted assurance, the Aegis
combat system, and over the horizon radar, hypersonic and operational
analysis” (5) projects.
Assumption 2:
LMO has a strong focus within a Global context for the future
development of its Business Strategies and platforms. A Strategy is a
mission statement to differentiate the Organisation to that of its
competitors. Therefore enabling the utilization of its strengths,
weaknesses, threats and opportunities. LMO globally has employment of
118,000 people in 27 countries worldwide.
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Assignment 1- An external audit
Assumption 3:
Currently operating under a bilateral trade arrangement under the Obama
Government. Which has shown un-favorable trade agreements towards a
more Trilateral arrangement with North America.
The requirements for a more,
Efficient Integration with North America. To align the three countries
US, Canada and Nth America in competiveness, enabling a more
succinct and better border controlled policies. Providing for a more
cohesive and marketable, atmosphere, under a more appropriate,
Trilateral climate. To better ensure that trade regulations and that the
increase of economic trade forum is of equal standing to all, so to
gather momentum in profit and efficiency (6)
Assumption 4:
The Lockheed Martin Corporation seemingly at this point in time is
operating in a less favorable environment often seen as Turbulent. A
Strategic Business Plan would help eliminate the propensity of this feeling
of unease and the strength of the Corporations Strategies and Policies
should be the guidance to remove them from this threat of uncertainty
whilst operating in this setting. LMO are seen as a more conservative
player in the field of Business. As mergers and acquisitions are handled
delicately due to their previous experiences. LMO mission statement is
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Assignment 1- An external audit
reflective of the Kelly’s 14 Basic rules, whilst remaining intensely
sensitive and conservative to
“diverse social and cultural settings in which they have conducted their
business. We are a company that values teamwork, sets team goals,
assumes collective accountability for actions, embraces diversity and
promotes full-spectrum leaders - those who meet their performance
objectives while also exhibiting the leadership behaviors we value.(7)
With the next generation of fighter Jets required, the intensity and the
Theatre of War has thus emerged the need for a renewed Technology.
“Technology has become the newest game changer, compared to that of
Stealth which changed the battle of space”(8)
LMO have a policy of completing projects at a fast rate with great
successes to prove their strengths in their Strategy policies are working
both in Business and also in the competitive Theatre of War.
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Assignment 1- An external audit
Technology:
Currently today the Lockheed Martin Organisation is establishing
Technical concepts such as the:
1/ Falcon which is capable of Mach 20 (13,000mph), with hypersonic
weaponry on board.
Also the:
2/ Unmanned Air Vehicle to travel at speeds, Mach 6
Displaying a “Hybrid Engine” with an integration of a turbine supersonic
ramjet engine.
Previously LMO have had to go into an extreme lock down phase and
produce an internal and external Audit of their current Strategy policies.
With the reinvention of the Organisation which has virtually saved the
Corporation. With the US Government monetary affairs failing the
defence budgets, we have seen in the 1980’s slashed funding’s for the
NASA projects amongst others. The Government proclaims in 1993 “that
many organisations will not weather the storm and will not be given any
help to sustain themselves profitably.
Changes in warfare culminated in funding cuts and expenditure, as belt
tightening and purchasing power of materials and its management began
to jeopardize the future of the “jet Fighter, transport, and other products’(9)
The Financial Engineering concept enters the Business world as the Re-
engineering platform, phase of LMO takes shape, both internally and
externally. Its focus and vision was the savior of their fortunes, before the
turbulence of the Global financial crisis and economic recessions of
1990-1997 hit the Defence industry.
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Assignment 1- An external audit
As a defence mechanism, in 1994 an intense recovery period for LMO,
focusing on their expansion and growth, amongst its more Technical
oppositions. In 1995 new purchasing contracts and a more specific focus
on supplier agreements arose.
“New purchasing arrangements was arranged with lesser suppliers”(10)
With lucrative buy ups and mergers and acquisitions. This was the
fundamental basis for creating increased wealth in its market share, as a
role reversal compared to many others in this industry players who were
competing for survival on the share market.
The Organisation expanded collectively, both in Economic Business
worlds and more importantly in the World of Technology. Government
deals were signed with the US Defence Department, Department of
Energy and NASA. The US Anti-Trust Laws became an element of
uncertainty for the LMO, with US Government restrained in paper work.
Lockheed’s major restructuring saved large amounts of money up to the
$2.6 Billion mark.
The two strategies the Lockheed Group supported were, enter into new
markets with external re-engineering and secondly increasing their market
shares, by consolidation.”With the combinations of mergers or
acquisitions, changing the way the company does business”(11)
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Assignment 1- An external audit
Conclusion:
As the battle for Speed and Stealth highlights the Theatre of War, the
“barriers of entry” for the LMO as a Global Security and Aerospace
entrant is conclusive, with the Next Generation of Fighter Aircraft and the
availability of the newest Technological design platforms. This renewed
Technology, was cultivated from mergers and aquisitions, enabling LMO
to enter into a new area in the “Theatre of Battle to what Stealth was for,
in the change of the Battle of space”(12)
As trade agreements threatened to slow their growth they sought refuge
globally and became aligned with different Government policies around
the Globe. They gave themselves Power of substitute products: such as the
new “Hybrid engines displaying an integration of a turbine supersonic
ramjet engine”(13)
Rivalry among industry members: ensured LMO
Keeps its cost low and productivity high as an approach to its
leadership and style of management as encouraged by Kelly Johnston.
Now seen as a more semi autonomous entity within Lockheed
Martin”(14) Advanced experimental platforms such as the “Falcon
hypersonic vehicle” collection of Air vehicles data, such as
Aerodynamics, thermal and navigational challenges of hypersonic
flight(15)
The new game change being speed as the next big
game changer in theatre as the Falcon can penetrate at Mach
20(13,000mph), with hypersonic missiles with a strike capability of
one hour across the continent”(16)
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Assignment 1- An external audit
Stealth capabilities to that of speed are represented here. Now being seen
as the new Stealth (17)
The Government in respect to Lockheed Martin Organisation was its
“final customer” and could not afford complicated legal battles (18)
Key Strategies in Focus” Simultaneous strategies co-ordination. ”Where
we are today and where we want to be tomorrow” (19)
The Lockheed Martin Organisation today maintains a philosophy of
“Keeps its cost low and productivity high as an approach to its
leadership and style of management as encouraged by Kelly Johnston.
Now seen as a more semi-autonomous entity within Lockheed Martin”
(20)
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Assignment 1- An external audit
References
(1) lockheedmartin.com.au
(2) lockheedmartin.com.au
(3) Title: Lockheed Martin to develop a son of Blackbird
Source: The Engineer Online. (Nov. 4, 2013):
Document Type: Brief article
Copyright: COPYRIGHT 2013 Centaur Communications Limited
http://www.theengineer.co.uk/
(4) lockheedmartin.com.au
(5) http://images.defence.gov.au/S20140477-media release
(6) Harvard Business review May-June 97
(7) lockheedmartin.com.au
(8) Harvard Business review May-June 97
(9)
Title: ‘Son of Blackbird': Plan for a new spy plane
Source: CNN Wire. (Nov. 5, 2013):
Document Type: Article
Copyright : COPYRIGHT 2013 CNN News source Sales, Inc.
http://news.blogs.cnn.com/tag/the-cnn-wire/
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Assignment 1- An external audit
References
(10)
Title: Streamlining supply at Lockheed Martin
Author(s): Tom Stundza
Source: Purchasing. 123.3 (Sept. 4, 1997): p60.
Document Type: Article
Copyright: COPYRIGHT 1997 Reed Business Information, Inc. (US)
http://www.cahners.com
(11)
(2005 Business Operations of the Lockheed Martin Organization, and the
conduct of business in the 2005 (Savage, Luiza CH.))
(12)
Source Citation (MLA 7th Edition)
"Lockheed Martin to develop a son of Blackbird." Engineer Online 4 Nov.
2013. Academic OneFile. Web. 20 Mar. 2014
(13)
Title: Lockheed Martin to develop a son of Blackbird
Source: The Engineer Online. (Nov. 4, 2013):
Document Type: Brief article
Copyright: COPYRIGHT 2013 Centaur Communications Limited
http://www.theengineer.co.uk/
12
Assignment 1- An external audit
References
(14)
Title: Streamlining supply at Lockheed Martin
Author(s): Tom Stundza
Source: Purchasing. 123.3 (Sept. 4, 1997): p60.
Document Type: Article
Copyright: COPYRIGHT 1997 Reed Business Information, Inc. (US)
http://www.cahners.com
(15)
Title: Lockheed Martin to develop a son of Blackbird
Source: The Engineer Online. (Nov. 4, 2013):
Document Type: Brief article
Copyright: COPYRIGHT 2013 Centaur Communications Limited
http://www.theengineer.co.uk/
(16)
Title: ‘Son of Blackbird': Plan for a new spy plane
Source: CNN Wire. (Nov. 5, 2013):
Document Type: Article
Copyright : COPYRIGHT 2013 CNN Newsource Sales, Inc.
http://news.blogs.cnn.com/tag/the-cnn-wire/
13
Assignment 1- An external audit
References
(17)
Title: ‘Son of Blackbird': Plan for a new spy plane
Source: CNN Wire. (Nov. 5, 2013):
Document Type: Article
Copyright : COPYRIGHT 2013 CNN Newsource Sales, Inc.
http://news.blogs.cnn.com/tag/the-cnn-wire/
(18)
Title: ‘Son of Blackbird': Plan for a new spy plane
Source: CNN Wire. (Nov. 5, 2013):
Document Type: Article
Copyright : COPYRIGHT 2013 CNN Newsource Sales, Inc.
http://news.blogs.cnn.com/tag/the-cnn-wire/
(19)
Title: ‘Son of Blackbird': Plan for a new spy plane
Source: CNN Wire. (Nov. 5, 2013):
Document Type: Article
Copyright: COPYRIGHT 2013 CNN Newsource Sales, Inc.
http://news.blogs.cnn.com/tag/the-cnn-wire/
(20)
Title: Lockheed Martin to develop a son of Blackbird
Source: The Engineer Online. (Nov. 4, 2013):
Document Type: Brief article
Copyright: COPYRIGHT 2013 Centaur Communications Limited
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Assignment 1- An external audit
http://www.theengineer.co.uk/
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Assignment 1- An external audit
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