BUSINESS STRATEGY

Business Strategy and Financial Performance of BAE Systems



Table of Content

Introduction3

Business Strategy - BAE Systems4

Expansion and Restructuring4

Operations Management5

BAE Systems Land Systems7

Organisational Audit - SWOT10

Strengths10

Weaknesses11

Opportunities11

Threats11

Environmental Scanning - BAE Systems12

PESTEL Analysis12

Political12

Economic13

Social13

Technological13

Environmental14

Legal14

Porter's Five Forces Model15

Threat of Substitute Products and Services15

Threat of Entry of New Competitors16

Intensity of Competitive Rivalry16

Bargaining Power of Buyers16

Bargaining Power of Suppliers17

Conclusion17

Recommendations17

References19

Appendix22

Financial Performance22

Business Strategy and Financial Performance of BAE Systems

Introduction

BAE Systems plc is a British company located in Hampshire region of England. BAE Systems is a aerospace and security defence company. Its subsidiary is present in North America under the title of BAE Systems. BAE is classified as the biggest defence contractor in the world. BAE Systems was formed in year 1999 by the merger of two British companies i.e. Marconi Electronic Systems (MES), and British Aerospace (BAe). BAE is listed on London Stock Exchange that is part of FTSE 100(Forbes, 2010, pp. 33-40).

BAE Systems is the world's second largest defense and intelligence contractor and among the top 10 providers of IT solutions for the U.S. Intelligence Community. With a 30-year record of partnership with the Intelligence Community, BAE Systems is an industry leader in delivering the people, processes, and solutions that improve execution of operational missions.

BAE Systems is demanded in various defence designs, including F-35 Lightning II, Eurofighter Typhoon, the Astute class submarines, and carriers of the Queen Elizabeth class craft.

The organisation has been criticised in terms of worldwide enemy to the arms deal and in particular the particular allegements of wrong and corrupt exercises, counting the Al Yamamah contracts with Saudi Arabia that have made BAE and its forerunner £43 billion in twenty years. (Forbes, 2010, pp. 33-40)

Business Strategy - BAE Systems

Expansion and Restructuring

The first annual report identified BAE Systems Airbus, support services to the military and integrated systems for air, land and naval forces as key growth areas. He also expressed the desire to expand the company both in the U.S. and take part in further integration in Europe. BAE depicted in 2001 as a "significant year" for its European joint venture, which was significantly reorganized. BAE has depicted the rationale for development in the U.S., "which is by far the largest defence industry with the passage ran nearly twice that of Western European countries mixed importantly investment U.S. in examines and development is considerably higher than in the west. Europe. (Richard, 2010, pp. 133-140

Operations Management

BAE Systems sold its majority stake of 54% by BAE Systems of Canada, an electronics company in April for £ CAD310 (about 197 million pounds in December 2010). In November 2001, BAE announced the closing of the Avro Regional Jet (Avro RJ) assembly line at Woodford and the annulment of the Avro RJX, a number advanced aircraft fellowship, as the business concern "was no more executable." The Avro RJ was completed last became the last British civilian aircraft. In November 2001, BAE sold its stake of 49.9% of Thomson Marconi Sonar to Thales for £85 million. A step beyond the European defence integration was the amalgamation of Matra ...