III. Internal Analysis
Lockheed Martin employs the use of diversification through its four business segments; aeronautics, space systems, electronic systems, info systems and global solutions. These business segments within Lockheed share their capabilities and culture created by the executive leadership employed by their top level management team. Diversification through these business segments allows Lockheed to handle hits from the economy and regulations and price cuts put into place for the defense industry. This diversification allows for Lockheed to be versatile especially in times of crisis.However, Lockheed is a US dependent entity, which puts them in a place to face risk. Lockheed in order to avoid risk employs the use of low cost operations and adherence to the rules and regulations put into place.Lockheed uses a considerable amount of resources devoted to the innovation of new products and services. Lockheed’s
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In an industry characterized by high competition Lockheed had immersed itself into two scandals, in the 1970’s and in the year 2005. These scandals tarnished the reputation of Lockheed and left many of its customers with little trust in the company. However, in an attempt to reengineer themselves, Lockheed has developed a reputation in improved ethics and transparency.
IIIA. Financial Data and Performance
The net profits of the company totaling $2.66 billion in 2011, coming from its four operating segments: Aerospace, Space Systems, Electronic Systems, Information and Global systems.The ROE is over 112% the company is returning more to its equity holders than the majority of its competitors except Boeing; And the company’s