1. Matthew Neitzel GB540:01 Economics for Global Decision Makers Week 6
Dr. Barbara-Leigh Tonelli
November 29, 2011

2. About Lockheed Martin
Lockheed Martin is a global securities and information company
Main business is in research, design, development, manufacturing, integration, and sustainment of advanced systems, products, and services
Employs over 126,000 people throughout the world

3. About Lockheed Martin Lockheed consists of four operating units
Aeronautics
Electronic Systems
Information Systems and Global Solutions
Space Systems

4. The Past Company was created in 2005 from a major merger
Lockheed Corporation
Martin Marietta Corporation
Lockheed began in 1912
Created by Allan and Malcolm Loughead
Martin Marietta began in 1912
Created by Glenn L. Martin

5. The Past Sales come from three different avenues
Relies heavily on U.S. Government defense contracts
Revenue from foreign governments
Commercial or other customer sales
2010 revenues of $46,890 million
Up 3.8 percent over 2009
2010 profits of $2,926 million

6. Current State Lockheed Martin is a Fortune 500 company
Ranks 52 in the 2011 list
2011 is positioned to have a great year
Third quarter net sales are up at $12.1 billion
Third quarter operations grew to $665 million
Company is focusing on cutting costs and delivering value to its customers

7. The Future The future is promising for Lockheed Martin
Strong customer satisfaction
Able to attract and retain key employees
Lockheed Martin faces many risks
U.S. defense budget cuts
Sizable pension liabilities
Competition
Foreign government contract uncertainties

8. Room for Improving
Lockheed Martin can continue to improve on its research and development for future products and technologies
Lockheed Martin SWOT analysis
Strengths
Strong national and global operations
Strong product portfolio from each of its operating units
Customer base is very stable
Limited competition

9. Room for Improving SWOT analysis continued Weaknesses Opportunities
Low price approach makes cutting costs difficult
Low concentration of buyers
Government’s budget volatility
Opportunities
Global terrorist attacks and wars
Increase in defense spending
Private sector opportunities

10. Room for Improving SWOT analysis continued
Threats
Volatile commodity prices can make forecasting difficult
Possible employee strikes which delay orders
Defense spending due to politics
Ending wars can decline contracts
Company needs to focus on this analysis in making decisions to improve

11. New Ventures to Add
Lockheed Martin should continue to add new ventures as products are researched and conceptualized
Lockheed Martin’s philosophy is that sometimes you need to make answers, not find them
New ventures are developed for all of Lockheed Martin’s operating units

12. New Ventures Aeronautics Advanced Composite Cargo Aircraft (ACCA)
The ACCA uses advanced composites to make the aircraft more durable and lighter.
Transformer TX
The TX is a dual mode vehicle; a ground vehicle and a vertical take off air vehicle.

13. New Ventures Electronic Systems SPY-1 Family of Radars Marlin
A more integrated and higher capability sensor and weapon system for safe and reliable operations.
Marlin
Ten-foot long submersible for commercial, scientific, and military customers to conduct subsea surveys and inspections.

14. New Ventures Information Systems and Global Solutions MONAX SweepAlpha
4G wireless portable touch-screen tablet with high security infrastructure for convenient, immediate communications.
SweepAlpha
Integrates the functionality of a PC and the freedom of wireless tablet or phone devices.

15. New Ventures Space Systems GeoEye-2 Mars Reconnaissance Orbiter (MRO)
Next-generation of high-resolution, Earth-imaging satellites for map-accurate images and intelligence.
Mars Reconnaissance Orbiter (MRO)
The most powerful suite of science instruments, cameras, and unprecedented data relay capability for research of Mars.

16. Old Ventures to Subtract
Outdated technology
Technology is constantly changing
Old technology should be removed and replaced by new technology
Outdated manufacturing materials
New materials should be researched
Replace older materials for new
Monitor material durability

17. Old Ventures to Subtract
Work with customers
Monitor customer’s product for outdated products
Replace old product with new

18. 18-24 Month Forecast Backlog of orders of more than $78 billion
This backlog is expected to be filled within the next months
Backlog consists of both funded and unfunded contracts
Continued research and development
New research will increase future sales and contracts

19. Strategic Audit U.S. Government continue to grow
84 percent of revenue comes from defense contracts with the U.S. government
Global/Foreign relations are stable
15 percent of revenues comes from contracts with foreign governments
Civilian/Other also are growing
The remainder of revenues come from commercial sales

20. Three Recommendations
Continue aggressive research and development
Obtain more global contracts, including partnerships with the United Nations
Work with the U.S. Government on war preventing products

21. References
CNNMoney. (2011). Fortune 500. Retrieved from
Lockheed Martin Corporation (LMC). (2011). About us. Retrieved from
Lockheed Martin Corporation (LMC). (2010). Lockheed Martin Corporation: 2010 annual report. Retrieved from
Lockheed Martin Corporation (LMC). (2011). Lockheed Martin Announces Third Quarter 2011 Results. Retrieved from
Lockheed Martin Corporation (LMC). (2011). Products by Lockheed Martin Organization. Retrieved from
McConnell, C., Brue, S., & Flynn, S. (2009). Economics (18th ed.). New York, NY: McGraw-Hill Irwin.
WikiWealth. (2011). Lockheed Martin (LMT) SWOT analysis. Retrieved from (this is not wikipedia)