Stakeholder Analysis: Lockheed Martin Corporation

In a competitive world market, businesses must have a thorough understanding of the processes and systems used within the company in order to determine whose interests need to be taken into account when implementing policies and/or programs. This stakeholder analysis is integral to growth and development. For large corporations which have multiple divisions and companies within their corporate structure it is essential to look at all aspects of the business model to identify stakeholders. Establishing the given responsibilities of the various divisions and the direct role they play in the economic success of the firm must also be considered. Many of the largest and most lucrative corporations in the world are those related to supporting military

At Lockheed Martin, shareholders represent a significant portion of this demographic. They are anyone who owns Lockheed’s stock and is impacted by its performance; positively when the stock rises and negatively in times of poor performance. Lockheed is concerned about its shareholders because they are entitled to earning profits from its stock as investors and owners of the company. If shareholders become dissatisfied they can change how the company is run; for example, they can replace the existing board of directors through a voting process. Consequently, Lockheed Martin’s decisions are focused on generating profit for their shareholders to increase stock valuation. Lockheed Martin’s shareholders are classified as dominant stakeholders because they have power to affect decisions and wield the authority to do so. This power originates from the shareholders ability to make Lockheed base its business decisions around earning money for its investors, thereby validating their legitimacy to the company as rightful owners. Despite these attributes, shareholders have little to no impact on most of the corporation’s daily management and have a low threat capacity and necessary cooperation level; they merely own the stocks. Given shareholder's status as type two stakeholders Lockheed Martin needs to monitor stock

Day after day, they influence the success of the organization through their productivity and efficiency in performing routine tasks and duties. Even more important is their ability to adapt to unforeseen circumstance that arise and correct any issues in an efficient manner. Within Lockheed Martin, specifically the Sikorsky sector, are the people who develop and create military helicopters sold for a profit. Sikorsky wants its employees to be more than satisfied; happy employees will maintain or better still, increase productivity and efficiency in the workplace, driving more sales and generating more revenue. As the core of Sikorsky, the employees are dominant stakeholders due to their power over decisions and legitimacy. Correspondingly, Lockheed Martin offers an attractive benefits package, including a competitive salary. For instance, the median salary for engineers at Sikorsky is approximately $70,000-$80,000. Additional benefits include a 401K, paid vacation days, sick leave as well as maternity and/or paternity leave. Similarly, the employees have a legitimate stake in Sikorsky because they are the building blocks on which the company soars to success or plummets to failure. Given these two qualities and employees typical willingness to cooperate with their company and high threat capacity, Sikorsky should try to collaborate with this type four stakeholder. If Sikorsky values its