Research Paper on Strategic Management in Lockheed Martin

Paper Type:  Research paper
Pages:  7
Wordcount:  1850 Words
Date:  2022-12-05

Introduction

Management of global organizations has over time been a business challenge. However, the nature of the task is changing with accelerating the shift of economic undertakings from North America and Europe to markets in Asia, Africa and also Latin America. Changes over time, somehow are inevitable and thus, how a company addresses such changes coming their way determines how far they can go. Changes like acquisitions, mergers or even loss of major client can't be understood by many, and thus a much has to be done to incorporate all the parties involved to avoid resistance. This will do an analysis report for the second scenario to its CEO. Whereby Lockheed Martin, is faced with a challenge of likelihood to lose its major client 'U.S government.' The loss comes in with the anticipated huge cut in the procurement of the military equipment over the next decade.

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The report analysis will cover lots of areas in the analysis of Lockheed Martin decisions as displayed in the second scenario. For analysis, the paper will make use of various tools by facts and own opinion. There are some models which will be adopted in this analysis to assess the state of Lockheed Martin and the overall defense industry. To begin with, will be the company background which will specify the status of the company and where it stands currently and possible threats that the action in the second scenario may have on both the Lockheed Martin and US department of defense as the client.

Company Background

Lockheed Martin is an American global corporation with worldwide interest as it deals with defense, aerospace, advanced technologies, and security. Initially, it was formed as an outcome of a blend between Martin Marietta and Lockheed Corporation back in March 1995 (Petrescu, Aversa, Akash, Bucinell, Corchado, Berto & Petrescu, 2017). The Corporation has its headquarters in Maryland in Washington DC. By December 2017, Lockheed Martin has had approximately 100,000 employees across the world. The corporation is one of the largest firms in defense, aerospace, technologies industries, and security. It happens to be the world's largest contractor of defense based on its revenue for the year 2014. For instance, taking back in 2013 approximately 78% of the Lockheed's revenue was directly from army sales. It capped in the list America's state government suppliers and also got like 10% of all the coffers paid by the Pentagon.

The company is affianced mostly in research, strategy, manufacture, development, incorporation, and sustenance of technology products and services as well as systems. The firm carries out its operations via its four segments, that is Artilleries and fire regulator, Aeronautics, space systems, and rotary and mission systems. In terms of Client base; the firm serves both America and international clients with products and services that possess civil, security and commercial submissions with its main client being agencies of the U.S. government (Petrescu et al., 2017).

Operating Environment

Lockheed Martin Corporation believes in a comprehensive work atmosphere. It assumes lots of mind power from background to satisfactorily define what the future holds. To enhance the sharing of ideas, the corporation fosters a work environment that facilitates a difference and extensive idea thinking. The corporation believes that being worthy of their customer's trust is their top priority. That way, the company adheres to the highest ethical standards, abide by the rule of law in every country that it does business. Also, the corporation strives to be a responsible corporate citizen in doing what is expected of them. Respect for others is a core towards the success of the corporation. Its success is hinged on the ability of its skilled, talented employees to function as a strongly integrated team. It embraces respect and diversity towards one another, towards its customers, partners and the suppliers that the company interacts with. Finally, the hope of the customers relies mostly on the corporation to undertake every bit as important to the firm as it is to them and every challenge is approached with a greater determinant of success.

Rewards to Its Staffs

The corporation holds NOVA awards which were created in 1995. The award is their highest honor that is out to celebrate and recognize stellar employee achievements. Secondly, the corporation greatly believes in patents and innovations. At this point, it makes are possible efforts of encouraging and rewarding its employees for coming up with discoveries and innovations that are capable of changing the world (Dove, Schindel, & Garlington, 2018).

Thirdly, the firm has a special recognition award, which rewards extraordinary persons and general team performance within each unit of business across the year. Fourthly, there are spot awards which range from cash awards, gift certificates to saving bonds. Such awards are offered to the staffs by their managers for their exemplary performance. Finally, the firm offers Longevity awards. Such awards are given to the members after every five years as a sign of appreciation for their dedication and ongoing services.

Mission/Vision and Values

The mission on Lockheed Martin is that they solve multifaceted challenges, cutting-edge scientific discovery and then deliver advanced solutions in a bid to aid his clients to keep people safe and secure. Their concept is to be a worldwide leader in ancillary its client's missions, solidification security and hence evolving scientific discovery. The corporation believes in three value systems, which includes, doing what is right, respect others and be able to perform excellently.

Lockheed Martin vision, mission, and values can motivate approximately half of the firm's employees. Besides being paid, the firm's mission statement is the most critical thing concerning their work for 10% of its staff at Lockheed Martin. From the statistics over 10% of the staffs say that the reason as to why they stay at Lockheed Martin is because at the firm's mission. Also, when an inquiry was made in regards to whom they feel the most loyal at work, like 20% of the employees confess that both vision and mission statements of Lockheed Martin keep them going. Therefore, with a strong focus on cohesive core company values and mission statement are of great importance to maintaining the employee's alignments.

From all the above review for the company, it is evident that Lockheed Martin values its clients very much and all its undertakings are geared towards achieving success from the client's sides. As an international security and aerospace firm, the mainstream of the Lockheed Martin's undertakings is with the U.S defense division and the US central government agencies. Additionally, Sikorsky offers martial and a rotary-wing craft to its all five subdivisions of the American equipped forces together with the military services and profitmaking operators across the 40 states. The residual section of Lockheed Martin's commerce encompasses global government and commercial sales of services, products, and platforms (Petrescu et al., 2017). . The way Lockheed Martin is organized, it is made into operating units which are further organized into broader business areas.

Lockheed Martin Business Model

A business model describes the importance of how exactly an organization can create, deliver and also get value in social, economic cultural and other possible fronts. The strategies towards business model construction and modification are commonly referred to business model innovations which ends-up forming part of the business strategy. Lockheed Martin encourages a traditional approach where it relates to Lockheed Martin as the core manufacturer of its military wares. With the traditional approach to doing business, an agency enters into a contract with a corporation which delivers on all its requirements (Thompson, Strickland & Gamble, 2015).

How the Mission/Vision of Lockheed Martin Relates to Scenario 2

Lockheed Martin should try and prepare adequately for the anticipated loss of its key client, the American government. From the corporation's vision, it is geared towards being a global leader in supporting its client's missions (Petrescu et al., 2017). For that case, its major client the U.S. government aims at reducing the procurement of military equipment as their goal. Therefore, Lockheed Martin has to try as possible to make the U.S mission his. That calls for acceptance and possibly try a renegotiate better or new terms all together to ensure their coexistence remains.

In support of what the client feels it's okay, Lockheed Martin will have to allow for flexibility in goal planning because of life circumstances. Sometimes customers need to assume detours on the road to success when working towards achieving their own goals. US Department of defense could rethink the option of resuming where they left off before the detour to get back to their original plan if they still think of perusing their original agreements. In addition to helping their clients as their mission states, they can create milestones along the way for the U.S government to be able to celebrate the step by step success in working towards their bigger goal regardless of how small the success can be.

It can sometimes be overwhelming to wait until the end, and thus the milestone celebrations along the way may keep the U.S government as the client to be motivated. What the Lockheed Martin would do as promised in its mission and vision is to see that its client can transition as well as achieve its procurement cut for the next ten years. The cut is not something that can be achieved instantly, but rather it requires some milestones to be achieved until the full goal is realized. Being a gradual change, Lockheed Martin will be obliged to help in attaining such goal with some set milestones from time to time.

When meeting the client, Lockheed Martin needs to recognize what has been achieved out of their relations with U.S government and see what has been achieved so far, rather than what is likely to happen as a result of a change in their procurement strategy. The client needs to be encouraged to press on their plans and ten years goal. The reason is that they generated and developed their very own goals regarding procurement (Dove, Schindel, & Garlington, 2018). Thus they had their buy-in. Thus, with the adoption to the latter of what they vision states, the Federal government will feel supported and empowered as they work towards making their ten years goal a reality.

Lockheed Martin Strategic Management

Driving strategic change at a hundred thousand company begins by choosing the right leadership. According to Betz, (2016), bringing on board Dr. Mackay, oversaw a sweeping reorganization of the department, which saw the peddling claims cut by almost 30% while eliminating $300 million in terms of cost from the western world's largest integrated healthcare network. Lockheed Martin has invested in five strategic approaches in which it undertakes its businesses.

Lockheed Martin believes in business integrity as a strategy. Undertaking business by high ethical standards attracts better and quality employees and customers as well as reducing pressure from the regulators of the government. Ideally, the success of Lockheed Martin's business success squarely depends on the company's commitments towards integrity (Betz, 2016). The firm is always geared towards doing what right daily, rather than just being law and regulations compliant is. The firm undertakings are always corresponding sustainability priorities which include anti-bribery, leadership, ethical governance, corruption control, responsible sales and supplier contact.

The staff well-being strategy-nurtu...

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Research Paper on Strategic Management in Lockheed Martin. (2022, Dec 05). Retrieved from https://proessays.net/essays/research-paper-on-strategic-management-in-lockheed-martin

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