AASkunk Works Current Audit Process and Strategies

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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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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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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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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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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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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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.

7


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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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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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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References

(1) 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/


(5) http://images.defence.gov.au/S20140477-media release

(6) Harvard Business review May-June 97


(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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http://images.defence.gov.au/S20140477-media



References

(10)

Title: Streamlining supply at Lockheed Martin

Author(s): Tom Stundza

Source: Purchasing. 123.3 (Sept. 4, 1997): p60.


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





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References

(14)

Title: Streamlining supply at Lockheed Martin

Author(s): Tom Stundza

Source: Purchasing. 123.3 (Sept. 4, 1997): p60.


Copyright: COPYRIGHT 1997 Reed Business Information, Inc. (US)

http://www.cahners.com

(15)






(16)




Copyright : COPYRIGHT 2013 CNN Newsource Sales, Inc.


13



References

(17)






(18)






(19)




Copyright: COPYRIGHT 2013 CNN Newsource Sales, Inc.


(20)





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AASkunk Works Current Audit Process and Strategies