Strategic Factor Analysis Summary (SFAS) Framework Analysis - 2015 - World's Top 8 Aerospace & Defense Companies - Airbus Group, Boeing, Lockheed Martin, Northrop Grumman, BAE Systems, General Dynamics, Raytheon, United Technologies
Introduction & Overview:
The report provides comprehensive analysis as well as strategic insights into the overarching strategic positioning of the World’s Top 8 Aerospace & Defense Companies through a Strategic Factor Analysis Summary (SFAS) framework analysis. Strategic Factor Analysis Summary (SFAS); also referred to as Quantitative SWOT Analysis; is a framework developed by T. L. Wheelen and J. D. Hunger, which is used widely across organizations globally as a key business analysis tool. The framework conducts a holistic assessment as well as comprehensive analysis of each company's internal as well as external environmental factors besides incorporating analysis of Business Structure, Strategic & Market Positioning, Business Strategies & Plans and Degree of Environmental & Strategic Responsiveness against the backdrop of an evolving industry landscape & shifting global dynamics.
Industry Backdrop:
The global defense & aerospace industry at present is juxtaposed between strong tailwinds driving tremendous growth momentum in the commercial aerospace segment and continued headwinds in the defense segment, witnessing a cyclical downswing marked by defense budgetary cuts underway across most traditional markets. The global aerospace & defense industry & most industry players are, thus, in the process of harnessing the alternate cyclicality of the commercial & defense segments effectively to partially offset the ongoing slump in the defense segment by leveraging the commercial segment’s growth momentum while preserving the core competencies & capabilities of their defense businesses through maintenance of an optimized defense industrial base, in line with the prevailing industry vicissitudes and to navigate their way through. The commercial aviation sector continues to witness tremendous growth driven by the convergence of strong, long-term growth drivers and a technological leap with the emergence & rapid commercialization of next generation propulsion & other aerospace technologies that has transpired into record order backlogs for latest commercial aircrafts across airframers & engine manufacturers.
The defense segment, on the contrary, faces the paradox of rapidly advancing technological capabilities with limited funding to support & sustain their development & commercialization costs. The industry, thus, has witnessed fastidious budget allocation of-late across the U.S. & Europe based on strategic significance of programs, capabilities & technologies in the overall force structure and contextual analysis with the emerging threat scenario. Some key, high priority programs have received congressional green light of-late in the U.S., especially, the next generation bomber & engine programs, despite continued budgetary pressures while the approval of radar upgrade over the Eurofighter Typhoon program in the EU indicates towards a similar trend. Further, recent changes in the U.S. strategy for the Afghanistan & Iraq war theatres marks an expansion of the campaigns based on redefined strategic objectives as well as broadening of tactical missions & role; with reinforcement of on-ground troop presence through fresh deployments & an enhanced role for airstrikes; which is likely to be sustained by increased OCO funding over near term and is consequently likely to drive an increase in activity for the U.S. defense industrial base reeling under the pressure of ongoing budgetary cuts.
Shifting Global Dynamics:
Further, geo-political dynamics & equations are witnessing significant changes with the ongoing decline in defense spending across the U.S. & EU while defense budgets across the Middle East & Asia-Pacific regions besides Russia continue to witness a significant growth. The share of China, Saudi Arabia & Russia in the Annual Global Defense Spending has been growing with China & Russia projected to overtake EU in terms of defense spending by 2015 while China's defense budget alone is estimated to be larger than France, U.K. & Germany combined by 2015. A number of nations, based in the Middle East region, too, continue to register significant growth rate with respect to defense spending, led by Saudi Arabia. Additionally, the Ukraine crisis has triggered concerns with respect to defense capabilities & has heightened threat perception amongst a number of European states based in Northern & Eastern Europe, led by Poland & Norway, which are focusing on building up military capabilities rapidly to counter growing Russian threat in the region, which is likely to drive an increase in defense spending over near term. Additionally, China’s rapidly growing military, especially, naval capabilities & activity as well as influence in the APAC region are driving an increase in defense spending already across a number of countries based in the Asia-Pacific region; led by Japan, India, South Korea & Australia and as highlighted by the recent changes in Japan’s strategic posture towards defense & active pursuit of defense programs; presenting potential export & growth opportunities for leading global industry players.
Relevance & Usefulness of the Report:
Against this backdrop, the report provides a comprehensive Strategic Factor Analysis Summary (SFAS) framework analysis on each of the World’s Top 8 Aerospace & Defense companies and provides an overall SFAS score based on each company's strategic positioning with reference to current & emerging market dynamics as well as industry trends and the degree of responsiveness to its internal & external environment respectively. The report also provides a comparative ranking of the 8 companies with reference to their SFAS scores, thereby, making it especially useful for competitive analysis & benchmarking purposes.
The framework generates an insightful snapshot of the prevailing, overall strategic equation for each company by identifying, weighing, prioritizing & ranking strategic factors present in the internal & external environment through an Internal Factor Analysis Summary (IFAS) matrix followed by an External Factor Analysis Summary (EFAS) matrix based on their strategic significance & potential degree of impact along-with each respective company's corresponding degree of responsiveness to those factors. SFAS, as a framework, thus, scores over the traditional SWOT analysis framework, in terms, of its ability to quantify strengths, weaknesses, opportunities & threats respectively based on the potential degree of effect of each strategic factor being analyzed and the company's commensurate degree of responsiveness to that, thereby, making it much more effective from the perspective of strategic planning and from a competitive assessment & analysis standpoint with the creation of a quantitative strategic snapshot on the company.
The report provides comprehensive business & competitive analysis and provides insights & inputs to be incorporated into the broader strategic planning & decision making processes.
The report will be useful for:
The SFAS Framework analysis report will be quintessential for those associated with and having strategic interest in the Global Aerospace & Defense industry and/or any of these companies. The report will be especially useful for Key Decision-Makers, Top Management of Companies, OEMs, Suppliers, Distributors, Vendors and other Key Players in the Industry Value Chain as well as existing & potential Investors, Industry & Company Analysts, M&A Advisory Firms, Strategy & Management Consulting Firms, PE Firms, Venture Capitalists & all those associated with the Global Aerospace & Defense Industry or any of these companies.
Highlight:
The report is comprehensive yet concise & compact at the same time; is custom-built for meetings & presentations, being built on the Microsoft PowerPoint platform; in addition, to being a ready self-reckoner as well as a quick reference guide driving, enabling & ensuring prompt and informed decision making.
The report provides comprehensive analysis as well as strategic insights into the overarching strategic positioning of the World’s Top 8 Aerospace & Defense Companies through a Strategic Factor Analysis Summary (SFAS) framework analysis. Strategic Factor Analysis Summary (SFAS); also referred to as Quantitative SWOT Analysis; is a framework developed by T. L. Wheelen and J. D. Hunger, which is used widely across organizations globally as a key business analysis tool. The framework conducts a holistic assessment as well as comprehensive analysis of each company's internal as well as external environmental factors besides incorporating analysis of Business Structure, Strategic & Market Positioning, Business Strategies & Plans and Degree of Environmental & Strategic Responsiveness against the backdrop of an evolving industry landscape & shifting global dynamics.
Industry Backdrop:
The global defense & aerospace industry at present is juxtaposed between strong tailwinds driving tremendous growth momentum in the commercial aerospace segment and continued headwinds in the defense segment, witnessing a cyclical downswing marked by defense budgetary cuts underway across most traditional markets. The global aerospace & defense industry & most industry players are, thus, in the process of harnessing the alternate cyclicality of the commercial & defense segments effectively to partially offset the ongoing slump in the defense segment by leveraging the commercial segment’s growth momentum while preserving the core competencies & capabilities of their defense businesses through maintenance of an optimized defense industrial base, in line with the prevailing industry vicissitudes and to navigate their way through. The commercial aviation sector continues to witness tremendous growth driven by the convergence of strong, long-term growth drivers and a technological leap with the emergence & rapid commercialization of next generation propulsion & other aerospace technologies that has transpired into record order backlogs for latest commercial aircrafts across airframers & engine manufacturers.
The defense segment, on the contrary, faces the paradox of rapidly advancing technological capabilities with limited funding to support & sustain their development & commercialization costs. The industry, thus, has witnessed fastidious budget allocation of-late across the U.S. & Europe based on strategic significance of programs, capabilities & technologies in the overall force structure and contextual analysis with the emerging threat scenario. Some key, high priority programs have received congressional green light of-late in the U.S., especially, the next generation bomber & engine programs, despite continued budgetary pressures while the approval of radar upgrade over the Eurofighter Typhoon program in the EU indicates towards a similar trend. Further, recent changes in the U.S. strategy for the Afghanistan & Iraq war theatres marks an expansion of the campaigns based on redefined strategic objectives as well as broadening of tactical missions & role; with reinforcement of on-ground troop presence through fresh deployments & an enhanced role for airstrikes; which is likely to be sustained by increased OCO funding over near term and is consequently likely to drive an increase in activity for the U.S. defense industrial base reeling under the pressure of ongoing budgetary cuts.
Shifting Global Dynamics:
Further, geo-political dynamics & equations are witnessing significant changes with the ongoing decline in defense spending across the U.S. & EU while defense budgets across the Middle East & Asia-Pacific regions besides Russia continue to witness a significant growth. The share of China, Saudi Arabia & Russia in the Annual Global Defense Spending has been growing with China & Russia projected to overtake EU in terms of defense spending by 2015 while China's defense budget alone is estimated to be larger than France, U.K. & Germany combined by 2015. A number of nations, based in the Middle East region, too, continue to register significant growth rate with respect to defense spending, led by Saudi Arabia. Additionally, the Ukraine crisis has triggered concerns with respect to defense capabilities & has heightened threat perception amongst a number of European states based in Northern & Eastern Europe, led by Poland & Norway, which are focusing on building up military capabilities rapidly to counter growing Russian threat in the region, which is likely to drive an increase in defense spending over near term. Additionally, China’s rapidly growing military, especially, naval capabilities & activity as well as influence in the APAC region are driving an increase in defense spending already across a number of countries based in the Asia-Pacific region; led by Japan, India, South Korea & Australia and as highlighted by the recent changes in Japan’s strategic posture towards defense & active pursuit of defense programs; presenting potential export & growth opportunities for leading global industry players.
Relevance & Usefulness of the Report:
Against this backdrop, the report provides a comprehensive Strategic Factor Analysis Summary (SFAS) framework analysis on each of the World’s Top 8 Aerospace & Defense companies and provides an overall SFAS score based on each company's strategic positioning with reference to current & emerging market dynamics as well as industry trends and the degree of responsiveness to its internal & external environment respectively. The report also provides a comparative ranking of the 8 companies with reference to their SFAS scores, thereby, making it especially useful for competitive analysis & benchmarking purposes.
The framework generates an insightful snapshot of the prevailing, overall strategic equation for each company by identifying, weighing, prioritizing & ranking strategic factors present in the internal & external environment through an Internal Factor Analysis Summary (IFAS) matrix followed by an External Factor Analysis Summary (EFAS) matrix based on their strategic significance & potential degree of impact along-with each respective company's corresponding degree of responsiveness to those factors. SFAS, as a framework, thus, scores over the traditional SWOT analysis framework, in terms, of its ability to quantify strengths, weaknesses, opportunities & threats respectively based on the potential degree of effect of each strategic factor being analyzed and the company's commensurate degree of responsiveness to that, thereby, making it much more effective from the perspective of strategic planning and from a competitive assessment & analysis standpoint with the creation of a quantitative strategic snapshot on the company.
The report provides comprehensive business & competitive analysis and provides insights & inputs to be incorporated into the broader strategic planning & decision making processes.
The report will be useful for:
- Strategic Planning, Competitive Assessment & Analysis and Benchmarking Exercise
- Identification of Key Strategic Factors classified & categorized under Strengths, Weaknesses, Opportunities & Threats for each company along-with their Quantitative Weights indicating Strategic Significance of each respective Factor through a Strategic Factor Analysis Summary (SFAS) Matrix.
- Assessment & evaluation of each Company's Strategic Positioning, Degree of Environmental Responsiveness and Strategic Orientation towards Internal & External Environmental factors as assessed through the Internal & External Factor Analysis Summary (IFAS & EFAS) Matrices.
- Generation of an overall Strategic Equation & Quantified SFAS score for each company based on analysis of Strategic Positioning and Market Dynamics.
- Relative/Comparative Ranking of the 8 Companies based on their SFAS scores and strategic analysis.
- Identifying & highlighting areas for making potential Strategic Changes, Adjustments & Realignment.
- Gaining a Strategic Perspective on the Business & Strategic Outlook for each company.
- Gaining access to Key Industry Trends, Issues & Challenges, Risk Factors & Industry Outlook.
- Analysis of Forces Driving as well as restraining the Industry & their overall Dynamics
The SFAS Framework analysis report will be quintessential for those associated with and having strategic interest in the Global Aerospace & Defense industry and/or any of these companies. The report will be especially useful for Key Decision-Makers, Top Management of Companies, OEMs, Suppliers, Distributors, Vendors and other Key Players in the Industry Value Chain as well as existing & potential Investors, Industry & Company Analysts, M&A Advisory Firms, Strategy & Management Consulting Firms, PE Firms, Venture Capitalists & all those associated with the Global Aerospace & Defense Industry or any of these companies.
Highlight:
The report is comprehensive yet concise & compact at the same time; is custom-built for meetings & presentations, being built on the Microsoft PowerPoint platform; in addition, to being a ready self-reckoner as well as a quick reference guide driving, enabling & ensuring prompt and informed decision making.
SECTION 1
Business Structure & Strategic Snapshot – For each of the 8 Leading Aerospace & Defense Companies
a) Founded
b) Headquartered
c) Business Segments
d) Employees
e) Revenues
f) Market Capitalization
g) Key Executives
h) Shareholding/Ownership Pattern & Structure
SECTION 2
Financial Performance Analysis – Q1-Q3 2014 Vs. Q1-Q3 2013, H1 2014 Vs. H1 2013 & 2013 Vs. 2012 Charts & Analysis for each Company:
Sales Revenues Growth Trend
Gross Earnings & Margin Trend
Operating Earnings & Margin Trend Analysis
Profitability Growth Trend
Net Profit Margin Analysis
Cash from Operations & Free Cash Flow Position
R&D Expenditure Growth Trend
CAPEX Trend
SECTION 3
Internal Factor Analysis Summary (IFAS) Matrix – For each of the 8 Key Industry Players
Quantified Strategic Factors categorized under Strengths
Quantified Strategic Factors categorized under Weaknesses
SECTION 4
External Factor Analysis Summary (EFAS) Matrix
Quantified Strategic Factors categorized under Opportunities
Quantified Strategic Factors categorized under Threats
SECTION 5
Strategic Factor Analysis Summary (SFAS) Matrix – With reprioritization, quantification & ranking of respective strategic factors deriving from IFAS & EFAS matrices.
Quantified Sources of Strengths which could be Leveraged
Quantified Weaknesses to be Worked Upon
Opportunities to be Capitalized Upon & their Quantification to Assess Degree of Relevance & Usefulness
Threats to be Mitigated, Negated & Overcome & their Quantification to Assess Potential Degree of Impact
SECTION 6
Comparative Ranking of Industry Players – Based on SFAS Scores
Airbus Group
BAE Systems
The Boeing Company
Lockheed Martin Corporation
Northrop Grumman Corporation
General Dynamics Corporation
Raytheon Company
United Technologies Corporation
SECTION 7
Global Aerospace & Defense Industry Force Field Analysis
Driving Forces
Restraining Forces
SECTION 8
Key Industry Trends
SECTION 9
Key Issues, Challenges & Risk Factors
SECTION 10
Strategic Industry Outlook
Business Structure & Strategic Snapshot – For each of the 8 Leading Aerospace & Defense Companies
a) Founded
b) Headquartered
c) Business Segments
d) Employees
e) Revenues
f) Market Capitalization
g) Key Executives
h) Shareholding/Ownership Pattern & Structure
SECTION 2
Financial Performance Analysis – Q1-Q3 2014 Vs. Q1-Q3 2013, H1 2014 Vs. H1 2013 & 2013 Vs. 2012 Charts & Analysis for each Company:
Sales Revenues Growth Trend
Gross Earnings & Margin Trend
Operating Earnings & Margin Trend Analysis
Profitability Growth Trend
Net Profit Margin Analysis
Cash from Operations & Free Cash Flow Position
R&D Expenditure Growth Trend
CAPEX Trend
SECTION 3
Internal Factor Analysis Summary (IFAS) Matrix – For each of the 8 Key Industry Players
Quantified Strategic Factors categorized under Strengths
Quantified Strategic Factors categorized under Weaknesses
SECTION 4
External Factor Analysis Summary (EFAS) Matrix
Quantified Strategic Factors categorized under Opportunities
Quantified Strategic Factors categorized under Threats
SECTION 5
Strategic Factor Analysis Summary (SFAS) Matrix – With reprioritization, quantification & ranking of respective strategic factors deriving from IFAS & EFAS matrices.
Quantified Sources of Strengths which could be Leveraged
Quantified Weaknesses to be Worked Upon
Opportunities to be Capitalized Upon & their Quantification to Assess Degree of Relevance & Usefulness
Threats to be Mitigated, Negated & Overcome & their Quantification to Assess Potential Degree of Impact
SECTION 6
Comparative Ranking of Industry Players – Based on SFAS Scores
Airbus Group
BAE Systems
The Boeing Company
Lockheed Martin Corporation
Northrop Grumman Corporation
General Dynamics Corporation
Raytheon Company
United Technologies Corporation
SECTION 7
Global Aerospace & Defense Industry Force Field Analysis
Driving Forces
Restraining Forces
SECTION 8
Key Industry Trends
SECTION 9
Key Issues, Challenges & Risk Factors
SECTION 10
Strategic Industry Outlook
