External Environment Analysis of Raytheon Company

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Business Finance

Description

Complete an analysis of the key external factors that have implications for successful implementation of your organization’s VMO, strategy and goals/objectives. You will examine your organization’s industry and the competitive conditions/positioning affecting it now or likely to do so in the future. Submit your work in your assignment folder in the form of an approximate 2,000-word double-spaced APA-formatted paper. The title page, reference list, and any appendices are not included in this suggested word count. You do not need to include an abstract.

My organization : Raytheon

Your paper should address these topics:

  1. A brief explanation of the industry (or industries) in which your organization operates as well as context for your organization’ current positioning.
  2. Analyze the current conditions in your organization’s industry and in its relevant general environment and their likely implications for successful implementation of your organization’s strategic goals and related actions. Be sure to address the PESTEL framework.
  3. Apply Porter’s Five-Forces Model to enrich your understanding of the environment in which your organization is now or may be operating. The Five Forces model should stress that this model is used to evaluate the industry, not your selected organization’s activities. The model should be used to isolate the dominant force(s) in the industry faced by all competitors and that produce the greatest threat to your organization’s profits and/or strategy. You should discuss how your firm can provide a defense against this threat or threats.
  4. Describe your organization’s strategic group and construct a map to show its relative market position. Add in a discussion of your rationale for the grouping.
  5. Summarize the threats and opportunities facing your organization gleaned from your analysis. (SWOT analysis) Submit the SWOT format in Table form and add in some narrative to discuss the threats and opportunities in more detail. Explain in your discussion (not in the table) why you selected them and how they relate to the VMO and organization’s strategy.
  6. Evaluate the extent to which your organization’s current strategy appears a good match for the competitive conditions it confronts or any gaps that must be addressed.
  7. Add in a strong conclusion that ensures the reader leaves your paper with a clear recap of your key points.

IMPORTANT: Do not just use someone else's SWOT, Five Forces, or other analysis. We want you to think for yourself. Critically analyze your firm and write about your original conclusions. Again, imagine you have been asked by the organization’s CEO or top leader to offer an assessment of the organization and how well it is positioned (or not) to deliver on the VMO and strategy in the external environment. This is a critical element, stand back and offer thoughtful criticism and recommendations.

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Explanation & Answer

Attached.

Answer outline to ANALYSIS OF RAYTHEON COMPANY








Overview of the defense industry
PESTEL Analysis
Porter’s five forces analysis
Strategic group
SWOT analysis
Current strategies and how they competitive conditions
Conclusion


Running head: ANALYSIS OF RAYTHEON COMPANY

Analysis of Raytheon Company
Name
Institutional affiliation

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ANALYSIS OF RAYTHEON COMPANY

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Overview of the defense industry
Raytheon operates in weapon or defense industry as well as in commercial electronics. The
weapon or defense industry is one that is very competitive and has several players because most
military technology comes from America. The industry involves intensive research and
development of better military equipment which will meet the demands of the contract. Raytheon
produces guided missiles, and it is the world’s largest producer a position it has maintained since
2007. According to SIPRI a peace research institution, it estimated that in 2015 the military
expenditure in defense was approximately 1.8 trillion dollars. The amount being spent in defense
in massive. The U.S is the largest producer of defense in the world as it is home to 100 of the
largest companies in the world. According to SIPRI (2016) report over $30 billion was spent in
arms trade in the international market a figure which excludes the domestic market. The figure
continues to grow by 16% every year since 2009.
Following the declining demand for military weapons such as guided missiles, many companies
such as Raytheon were forced to diversify their products. Raytheon is also involved in
telecommunication industry with specialization in military communication technology. The
defense industry is one that is extensive, and Raytheon has acquired a substantial share of the
market through involving itself in several areas. Raytheon offers air traffic control systems,
satellite sensors, communication, radars, and sensors. For the commercial industry Raytheon
manufacturers semiconductors for UK and US. In the semi-conductors industry, Raytheon ranks
in the top 20 in the U.S (SIPRI, 2016).
According to a report by SIPRI (2016), the top 100 companies globally made a total of 370.7
trillion dollars in 2015. For Raytheon it’s annual revenues are on average 20 billion dollars based
on their financial statements (Raytheon, 2017). The demand for arms continues to rise every day

ANALYSIS OF RAYTHEON COMPANY

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in markets such as Russia, U.S., and Western Europe (Brown, Browne & Cohen, 2016).
Raytheon ranks 4th among the world’s largest manufacturers of defense systems, and it is the
guided missile that gives it this position (Brown, Browne & Cohen, 2016).
PESTEL Analysis
Political factors
Politics affect the defense system which in term determines the profitability of companies such
as Raytheon. For Raytheon, it operates in the defense products and aerospace industries in more
than 20 countries, and this exposes the company to political environment and risks (SIPRI,
2016). Political risks have forced Raytheon to diversify their products in the market so that they
maintain their marke...


Anonymous
Just what I needed…Fantastic!

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