2. BUSINESS POLICY
Aeronautic Industry

3. INDUSTRY OVERVIEW:
 Aerospace manufacturing is a high-technology
industry that produces "aircraft, guided missiles,
space vehicles, aircraft engines, propulsion units,
and related parts". Most of the industry is geared
toward governmental work.
 In most industrial countries, the aerospace industry
is a cooperation of public and private industries
 Aerospace activity is very diverse, with a multitude
of commercial, industrial and military applications.

5. LOCKHEED MARTIN:-
 Lockheed Martin Missiles and Fire Control (MFC) is
a recognized designer, developer and manufacturer
of precision engagement aerospace and defense
systems for the U.S. and allied militaries
 . Lockheed Martin is also a leading contractor for
the U.S. Department of Energy and the National
Aeronautics and Space Administration (NASA).
 Lockheed Martin Corporation, major American
diversified company with core business
concentrations in aerospace products—including
aircraft, space launchers, satellites, and defense
systems—and other advanced-technology systems
and services.

6. SAFRAN:
 Safran is an international high-technology group,
operating in the aircraft propulsion and equipment,
space and defense markets.
Pakistan Aviation and Aerospace (Private)
Limited (PAA):
 Incorporated in 1992, PAA markets, supplies
equipment, and provides services to government,
semi-government, and select customers from
international companies and OEMs of high repute.

7. MISSION STATEMENT:-
 L:-We solve complex challenges, advance scientific
discovery and deliver innovative solutions to help our
customers keep people safe.
 S:-To meet the evolving needs of civil and military
aircraft operators worldwide by setting the standard in
terms of service quality, responsiveness, innovation and
value for money.
 P:-PAA aims to constantly strive to set new standards
for current and future projects and requirements. PAA
brings its valuable and credible human resource to
projects to identify and participate in customer and end
users to offer the right solution for their specific
requirement. PAA is constantly striving to set new
standards for current and future projects and
requirements.

8. VISION STATEMENT:-
 L:-Be the global leader in supporting our customers'
missions, strengthening security and advancing
scientific discovery.
 S:-To meet the expectations of our stakeholders,
including employees, partners, customers,
shareholders, suppliers and all the other communities in
our ecosystem.
 P:-The vision of PAA is for the company to continue to
lead the industry in customer satisfaction in our market
niche.PAA will implement improvement continuous
programs to ensure that our products and services
remain highly competitive in the marketplace at all
times.PAA will provide the highest technologically
advanced commercial aviation products

9. STRATEGIC LEADERSHIP:-
 L:-Effective leadership at Lockheed Martin isn’t
only about getting results. It’s about getting results
in the right way
 S:-Their makeup ensure fair representation of all
Safran businesses, as well as corporate functions,
to support operations.
 P:-.PAA concentrates on personal support at all
tiers of client organizations and updates information
and requirements related to latest developments
and strategy of the concerned customers to its
Principals.

10. PEST ANALYSIS:-
 Political Factors:
1.Risk of military invasion
2.Stability
3. Trade regulations &
tariffs
4. Pricing regulations
5. Wage legislation
6. Industrial safety
regulations
7. Taxation
 Economic Factors
1.Exchange rates
2. Business cycle stage
3.Inflation rate
4. Efficiency of financial
markets
5. Unemployment rate
6.Interest rates
7. Economic growth rate

11. PEST ANALYSIS:-
 Social Factors
1.Demographics
2.Skill level
3.Education Level as
well as education
standard
4. Entrepreneurial spirit
5. Class structure,
hierarchy and power
structure in the
society
 Technological
Factors
1.Technological
developments
2. Rate of technological
diffusion
3. Impact on cost
structure
4. Impact on value
chain structure

12. PEST ANALYSIS:-
 Environmental Factor
1. Weather
2.Laws regulating
environment pollution
3.Air and water pollution
regulations in
Aerospace/Defense
Products & Services
industry
4.Waste management in
Industrial Goods sector
 Legal Factor
1.Anti-trust law in
Aerospace/Defense
Products & Services
industry
2.Discrimination law
3.Copyright, patents /
Intellectual property law
4.Consumer protection and
e-commerce
5.Employment law
6.Health and safety law
7.Data Protection

13. BUSINESS LEVEL STRATEGY:-
 . L:-The Lockheed Martin International team works
closely with each of the corporation’s business
areas to deliver the breadth of Lockheed Martin’s
portfolio of products. Lockheed Martin has used a
differentiation strategy which is when the firm
produces non standardized products or services for
customers who value the differentiated features
more than they value low cost
 S:-Minority venture capital investment
take minority stakes in startups with disruptive
technologies and/or new business models.

14.  P:-PAA concentrates on personal support at
all tiers of client organizations and updates
information and requirements related to
latest developments and strategy of the
concerned customers to its Principals.

15. CORPORATE LEVEL STRATEGY:-
 L:-According to aerospace experts, the
development of emerging markets on the customer
side is the most important area for corporate
strategy. This can be attributed to the large number
of aircrafts ordered in Asia and the Gulf States in
2014.
 S:-Safran Corporate Ventures will focus in
particular on startups in the Group's business
sectors — aerospace, defense and security —
but it will also work with companies in other
industries if their technologies are applicable to
Safran's businesses.

16.  P:-People at PAA work as a team and as
such smaller requirements do not get lost in
a bureaucratic shuffle. Each member of PAA
is encouraged to be flexible and responsible
to suggest and find ways to satisfy
requirements of advancement of business
with a sense of ownership. PAA is TRACE
certified and registered with the US State
Department

17. GLOBAL STRATEGY:-
 L:-Committed to advancing global security and
strengthening local economies, Lockheed
Martin is dedicated to strengthening our global
partnerships. From the F-35 Lightning II and C-
130J aircraft, to integrated air and missile
defense, to commercial satellites and cyber
security — Lockheed Martin International is
devoted to helping our customers achieve their
missions with proven performance, key
industrial partnerships, and an expanded base
of operations.

18.  S:-Safran Electronics & Defence (Safran) and
Thomas Global Systems (Thomas Global)
announced a ground-breaking strategic alliance
to manufacture and support high-end defence
and related technologies in Australia. As part of
the alliance, Thomas Global plans to create a
specialist advanced manufacturing facility in
Australia, which will provide production and
long-term support for a range of Safran
technologies, including Safran’s advanced
PASEO sighting system.

19.  P:-Pakistan Aviation and Aerospace (Private)
Limited (PAA) has current and past extensive
business relationships with International
Companies like Cessna Aircraft Company, MD
Helicopters, TAI Turkey, Flight Safety International,
EMGEPRON Brazil, IN Services France, Reims
Aviation Belgium, Chemring UK, IAC UK, BA, AAR
Allen Airmotive Holland, Denel Sounth Africa,
Eurodef Greece, MKEK, MEREX USA, and many
other reputed companies.

20. SWOT ANALYSIS
 L:- Strengths
 Strong research and
development.
 Human resource
 strong product portfolio
 long term contracts
with government
agencies
 P:- Strengths
 Brand Name
 Cost advantage
 Customer Loyality
 Technology
 Strong Management
 Supply Chain

21.  Weaknesses
 contract misconduct
 Maximum
dependency on
government
contract
 Low price
approach.
 Weaknesses
 High Staff Turnover
 Lack of scale
 Work Inefficiencies

22.  Opportunities
 Acquisition and joint
ventures .
 Lockheed should
Increase the
international market
share
 Introduce more
innovative defense
products.
 New international
contracts
 Opportunities
 New Markets
 New services
 Financial Leverage

23. SWOT:_
 Threats
 Intense competition
globally.
 Economic slowdown.
 Reduction in defense
budget.
 Boeing strike perhaps
impact on company
reputation.
 Threats
 Bad Economy
 Substitude Products
 Govt. Regulations
 Volatile currency