abhishreshthaa
Abhijeet S
Alliant Techsystems Inc., most commonly known by its ticker symbol, NYSE: ATK, is one of the largest aerospace and defense companies in the United States with more than 18,000 employees in 22 states, Puerto Rico and internationally, and 2010 revenues in excess of an estimated US$4.8 billion.[3] The company headquarters is located in suburban Minneapolis, Minnesota.
ATK was formed in 1990 as a subsidiary of Honeywell Inc. as part of Honeywell's plan to exit the defense industry. Under the plan, Honeywell's defense businesses were transferred to ATK which was then spun off to Honeywell stockholders as a separate company.
In 1995 ATK entered the aerospace market with the acquisition of Hercules Inc. Aerospace division. Since then ATK has grown to become a leading supplier of aerospace and defense products to the U.S. government and its allies, and to prime contractors. ATK is also a major supplier of ammunition and related accessories to law enforcement agencies and commercial customers.
ATK is the sole manufacturer of the reusable Solid Rocket Motor used to launch the NASA Space Shuttle. In addition, ATK manufactures the booster separation systems that release the motors away from the Shuttle orbiter and the main liquid fuel tank. Nearly every NASA planetary probe has used some form of propulsion from the one of the company's divisions, and ATK also participated in the X-43A project. The company also produces the propulsion system used in the Trident D5 nuclear missile.
POLITICAL
• Strong global network
The company has strong international operations with customers in around 145 countries, employees in more than 60 countries and operations in 26 states. Worldwide, Boeing and its subsidiaries employ close to 188,000 people with major operations in Washington State; Southern California; Wichita, Kansas; and St. Louis, Missouri. Boeing enjoys the ownership of a brand with good and far reaching awareness on a global scale. Strong relationships with business partners
Boeing enjoys many strong alliances with many other globally powerful companies. In defence projects Boeing works closely with Northrop Grumman in programs such as the joint common missile program. Boeing is also a 50-50 partner with Lockheed Martin in the United Space alliance. Boeing also works with many other organizations such as NASA in close relationships, which strengthen the company’s position in other markets.
• Broad product line that covers most major market niches / R&D development
Boeing Company offers a wide range of product lines. For main commercial product such as aircraft, Boeing has 717, 737, 747, 757, 767, and 777 families of jetliners and the Boeing Business Jet. At the moment it is planning to release a new version, 787, which is called the Dreamliner. The company has more than 14,000 commercial jetliners in service worldwide, which is roughly 75% of the world fleet. Its product line is continuing to expand, creating new versions of its family of commercial airplanes. This pioneering technology development helps ensure Boeing stay a leader in the industry.
To remain competitive, Boeing must invest in developing the latest technologies. Thanks to its strong R& D, Boeing has been on winning side in the head-to-head competition with Airbus so far. Total research and development expense in 2003 was $1.7 billion. The company expects research and development expenses to be between 3.25% and 3.75% of revenue in 2004 and between 3.5% and 4.0% in 2005 as spending increases on the 7E7 program.
ECONOMICAL
• A hierarchical, ridged, and semi autocratic management style, which is a product of its military heritage.
Since the Second World War, the Boeing company still operates under a management style in which the employers makes decisions on their own with little or no input from employees. This does not fit in the modern management and for this reason; Boeing has several problems in management when it practices racial discrimination, tussles with its union workers, and then lets its executives flee the scene to avoid accountability.
• Labour problems
When production problems delayed delivery, Boeing was forced to increase its work force, working in three shifts, to complete the planes. This inexperienced work force created additional problems and the cost per plane is increased substantially. Moreover, the inexperienced workforce found the aircraft design too complex to implement. The managers ordered forced overtime: 50-to-60-hour workweeks became common. The problems affected other Boeing airplanes and complaints from customers began to mount. The Federal Aviation Administration (FAA) ordered special inspections of all Boeing jetliners produced since 1980 to look for defects that might affect safety. The strains of the forced overtime contributed to a 48-day strike in the fall of 1989 that hurt Boeing financially.
• Dependence on US government and WTO-incompatible subsidies
At the moment, Boeing mainly gains the benefit from the US which is 65 % of the company total annual sales. Moreover, Boeing is being criticized by Airbus for the subsidy contracts as well as foreign and domestic support all amount to aid for Boeing’s 7E7 model that is double what was available for the new Airbus A380. Whilst this fact is on one hand a great strength of the company with many opportunities it could also be construed as a weakness.
SOCIAL
• New aircraft to gain market share
With the impressive show of Airbus A380 recently, Boeing also plans to release its powerful weapon in the competition with Airbus. The new version Boeing 787 which inherits the most advanced technologies and advantages of the previous models is hoped to be a big hit to the airline industries. At the moment, Boeing has received a number of orders for Boeing 787- Dreamliner and this opportunity actually shows that Boeing still insists on its successful business strategy to build longer-range, more capable, smaller aircraft that could go point-to-point and, therefore, serve city pairs directly rather than having to hook them up through a hub. The new 787 is the proof that Boeing does not lag behind the competition.
• Increase demand for point to point routes
This is related to the booming market of low-cost airline. All the low-cost airline companies use point to point routes in order to reduce the costs substantially. Fortunately, this is suitable with the strategy of Boeing as mentioned in the previous parts. Airbus A380 is still unsure about its future because most of the big airline companies at the moment are not gaining profit.
TECHNOLOGICAL
• Slowdown in the commercial jet market
No industry was hit harder than airline industry after the 11th Sept. Boeing and Airbus as well have to suffer big losses in revenues from 2001. Recently, there are some good signals recently for both of the companies with the increase of order number. The demand for international tourism and delivery is increasing. However, it still does not reach the level before the terrorism event.
• Uncertain airline industry environment
The airline industry environment is so dynamic and uncertain that to guess long-term or even short-term outcomes is very questionable. Competition in the commercial aircraft industry is particularly
intense with regard to price, operating costs and production schedules. Increasingly, major manufacturers are teaming with global suppliers to reduce their risks, cut costs, and boost profitability.
Besides, a number of low-cost carriers continue to gain market share, remain profitable and are ordering new airplanes. There have been encouraging signs that the US economy and global air traffic are recovering and airline interest is slowly increasing. However, the timing of a commercial airplane recovery remains uncertain. Currently, airplane deliveries are likely to remain roughly flat in 2004 and 2005 and begin increasing in 2006.
ATK was formed in 1990 as a subsidiary of Honeywell Inc. as part of Honeywell's plan to exit the defense industry. Under the plan, Honeywell's defense businesses were transferred to ATK which was then spun off to Honeywell stockholders as a separate company.
In 1995 ATK entered the aerospace market with the acquisition of Hercules Inc. Aerospace division. Since then ATK has grown to become a leading supplier of aerospace and defense products to the U.S. government and its allies, and to prime contractors. ATK is also a major supplier of ammunition and related accessories to law enforcement agencies and commercial customers.
ATK is the sole manufacturer of the reusable Solid Rocket Motor used to launch the NASA Space Shuttle. In addition, ATK manufactures the booster separation systems that release the motors away from the Shuttle orbiter and the main liquid fuel tank. Nearly every NASA planetary probe has used some form of propulsion from the one of the company's divisions, and ATK also participated in the X-43A project. The company also produces the propulsion system used in the Trident D5 nuclear missile.
POLITICAL
• Strong global network
The company has strong international operations with customers in around 145 countries, employees in more than 60 countries and operations in 26 states. Worldwide, Boeing and its subsidiaries employ close to 188,000 people with major operations in Washington State; Southern California; Wichita, Kansas; and St. Louis, Missouri. Boeing enjoys the ownership of a brand with good and far reaching awareness on a global scale. Strong relationships with business partners
Boeing enjoys many strong alliances with many other globally powerful companies. In defence projects Boeing works closely with Northrop Grumman in programs such as the joint common missile program. Boeing is also a 50-50 partner with Lockheed Martin in the United Space alliance. Boeing also works with many other organizations such as NASA in close relationships, which strengthen the company’s position in other markets.
• Broad product line that covers most major market niches / R&D development
Boeing Company offers a wide range of product lines. For main commercial product such as aircraft, Boeing has 717, 737, 747, 757, 767, and 777 families of jetliners and the Boeing Business Jet. At the moment it is planning to release a new version, 787, which is called the Dreamliner. The company has more than 14,000 commercial jetliners in service worldwide, which is roughly 75% of the world fleet. Its product line is continuing to expand, creating new versions of its family of commercial airplanes. This pioneering technology development helps ensure Boeing stay a leader in the industry.
To remain competitive, Boeing must invest in developing the latest technologies. Thanks to its strong R& D, Boeing has been on winning side in the head-to-head competition with Airbus so far. Total research and development expense in 2003 was $1.7 billion. The company expects research and development expenses to be between 3.25% and 3.75% of revenue in 2004 and between 3.5% and 4.0% in 2005 as spending increases on the 7E7 program.
ECONOMICAL
• A hierarchical, ridged, and semi autocratic management style, which is a product of its military heritage.
Since the Second World War, the Boeing company still operates under a management style in which the employers makes decisions on their own with little or no input from employees. This does not fit in the modern management and for this reason; Boeing has several problems in management when it practices racial discrimination, tussles with its union workers, and then lets its executives flee the scene to avoid accountability.
• Labour problems
When production problems delayed delivery, Boeing was forced to increase its work force, working in three shifts, to complete the planes. This inexperienced work force created additional problems and the cost per plane is increased substantially. Moreover, the inexperienced workforce found the aircraft design too complex to implement. The managers ordered forced overtime: 50-to-60-hour workweeks became common. The problems affected other Boeing airplanes and complaints from customers began to mount. The Federal Aviation Administration (FAA) ordered special inspections of all Boeing jetliners produced since 1980 to look for defects that might affect safety. The strains of the forced overtime contributed to a 48-day strike in the fall of 1989 that hurt Boeing financially.
• Dependence on US government and WTO-incompatible subsidies
At the moment, Boeing mainly gains the benefit from the US which is 65 % of the company total annual sales. Moreover, Boeing is being criticized by Airbus for the subsidy contracts as well as foreign and domestic support all amount to aid for Boeing’s 7E7 model that is double what was available for the new Airbus A380. Whilst this fact is on one hand a great strength of the company with many opportunities it could also be construed as a weakness.
SOCIAL
• New aircraft to gain market share
With the impressive show of Airbus A380 recently, Boeing also plans to release its powerful weapon in the competition with Airbus. The new version Boeing 787 which inherits the most advanced technologies and advantages of the previous models is hoped to be a big hit to the airline industries. At the moment, Boeing has received a number of orders for Boeing 787- Dreamliner and this opportunity actually shows that Boeing still insists on its successful business strategy to build longer-range, more capable, smaller aircraft that could go point-to-point and, therefore, serve city pairs directly rather than having to hook them up through a hub. The new 787 is the proof that Boeing does not lag behind the competition.
• Increase demand for point to point routes
This is related to the booming market of low-cost airline. All the low-cost airline companies use point to point routes in order to reduce the costs substantially. Fortunately, this is suitable with the strategy of Boeing as mentioned in the previous parts. Airbus A380 is still unsure about its future because most of the big airline companies at the moment are not gaining profit.
TECHNOLOGICAL
• Slowdown in the commercial jet market
No industry was hit harder than airline industry after the 11th Sept. Boeing and Airbus as well have to suffer big losses in revenues from 2001. Recently, there are some good signals recently for both of the companies with the increase of order number. The demand for international tourism and delivery is increasing. However, it still does not reach the level before the terrorism event.
• Uncertain airline industry environment
The airline industry environment is so dynamic and uncertain that to guess long-term or even short-term outcomes is very questionable. Competition in the commercial aircraft industry is particularly
intense with regard to price, operating costs and production schedules. Increasingly, major manufacturers are teaming with global suppliers to reduce their risks, cut costs, and boost profitability.
Besides, a number of low-cost carriers continue to gain market share, remain profitable and are ordering new airplanes. There have been encouraging signs that the US economy and global air traffic are recovering and airline interest is slowly increasing. However, the timing of a commercial airplane recovery remains uncertain. Currently, airplane deliveries are likely to remain roughly flat in 2004 and 2005 and begin increasing in 2006.