Lockheed Martin is an American organization concentrating on the production of aerospace products such as space launchers, defense systems, and satellites. Lockheed Martin leads the U.S. market ass it supplies products to most of the US departments (Weiss & Amir, n.d.). For instance, most of the company’s annual sales are made to the U.S department of defense and the U.S Department of Energy Company. The company focuses on technological improvements to serve the interests of customers. Technological innovations and sustainability take into consideration all the external factors capable of affecting the performance of the company. Lockheed Company operations are influenced by political, environmental, economic, and social factors.
Macro-environment factors such as inflation, interest rates, and foreign exchange rate affect the functioning of Lockheed Martin Company. These factors have an influence on the performance of the company in the aerospace and defense products and services. The rate of investment and sales in the market depend on factors such as consumer spending and industry growth rate, which determine the overall sales revenue of the company in different countries (Dean & Phillips, 2015). The stability of economy in different countries and government intervention in the free market affect the performance of Lockheed Martin Corporation in the United States and other international markets.
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Social factors such as community culture affect how Lockheed Martin Corporation designs the products and marketing message. In effect, the company can analyze different social factors such as level of education and skill development in a particular region (Weiss & Amir, n.d.). This analysis provides adequate information related to the ability and knowledge in the population needed in using the company’s products. Education level determines the standard for people living in a particular geographical region and likelihood of purchasing the products. Factors such as gender roles and cultural values also play an essential in determining the success of Lockheed Martin Company’s products in the market because they determine the perception of the products by the community.
Lockheed Martin company operations are affected by different norms or environmental factors in its operation. Environmental clauses such as waste management and recycling affect the profitability of aerospace products and services. As a result, violation of the environmental roles by Lockheed Martin Company has the possibility for experiencing fines and charges likely to reduce revenue (Weiss & Amir, n.d.). The emergence of climate change has increased the degree in which companies remain committed to implementing corporate social responsibility in their operations. Lockheed Martin Corporation commits to innovating strategies such as reducing the level of environmental pollution.
Lockheed Martin Corporation operates in many countries exposing its products and services to political and system risks. In effect, Lockheed Martin Corporation needs to analyze various economic strategies such as political stability capable of influencing the functioning of aerospace products (Weiss & Amir, n.d.). Political stability determines the level of investment and consumption in a country as invasions may affect the protection of products in the market. Factors such as corruption, intellectual property, and legal framework in a country determine the ability of Lockheed Company to offer the aerospace products in different markets. In situations where there is weak intellectual protection rights and corruption, the company’s operations are likely to incur losses, thus recording a reduction in sales revenue. Trade regulations and tariffs of industrial goods also determine the ability of the company to expand its products and services to different countries.
Lockheed Martin Corporation depends on minerals such as copper, tin, and silver in space systems. This information indicates that the extraction of such resources needs to consider the future of the company and stakeholders. These resources are limited, and expensive to be obtained. Aerospace products need these minerals, but the companies need to consider the availability of such resources for future generation when using copper, lead, and tin. Lockheed Martin Company should consider several activities such as renewable minerals to be used in the production of services in the market (Motel, 2016). The limited nature of the minerals may increase the need for ensuring that products serve the interests of the company and those of people in society.
The operation of Lockheed Martin Company reflects stakeholder and the bottom line corporate social responsibility theories. The triple bottom line indicates that the company takes into consideration the returns into the company and the effects that the corporation can cause to the social realm. This information indicates that Lockheed Martin Corporation can maximize profit and sales revenue by implementing corporate social responsibility strategies capable of addressing the costs versus revenue needs of the company and those of the community (Dean & Phillips, 2015). For instance, aerospace and energy products may have a direct impact on the environment. As a result, Lockheed can consider the effects associated with its activities and include strategies such as renewable sources of energy and alternative solders capable for reducing the level of pollution.
Stakeholder corporate social responsibility theory creates an opportunity for a company to analyze different categories of people likely to be affected by its operations. The company should start the business by considering the entire environment and determine the effects that the company can cause to the stakeholders. The central idea is looking at the stakeholders and the impacts they have on the company. Lockheed Martin Company can consider the effects of its activities on government, community, employees, and shareholders (Department S. M., n.d.). Aerospace products and services have the impact of causing environmental pollution, thus compelling Lockheed Martin Company to consider ecological roles in different regions and implement strategies for curbing the level of greenhouse gas emissions. Lockheed Martin Corporation operates in different countries, and it has to satisfy the government regulation roles in such countries.
Lockheed Martin Company applies various strategies in improving its image to the public. For instance, the organization considers the effects of its operations on climate change. Climate change has become an interest at both domestic and international markets. Lockheed Martin Company has implemented lead-free space system by replacing the excessive use of lead with copper as a way for improving the company’s commitment in corporate social responsibility (Dean & Phillips, 2015). In the past, all the solders contained lead, but the Lockheed Martin Company has seen the need for coming up with lead-free solders. This strategy reinforces complying with the interests of the government in protecting the environment. The lead replacement approach focuses on creating solders with a combination of tin, silver, and copper.
Lockheed Martin Company also focuses on resource efficiency as an approach for maximizing the company’s viability in the market. This approach shows that the company is focused on reducing the level of greenhouse gas emissions to the environment, thus increasing a chance for developing a competitive advantage in the global market. Environment footprint for the company’s products contributes approximately to 70% of the organization’s financial recordings (Department S. M., n.d.). This approach shows Lockheed Martin Corporation’s commitment to the level of resource efficiency, thus maximizing the level of return in the market. This approach is accompanied by a commitment to improving the lives of employees in an environment. The employees from different diverse backgrounds increase the level of innovation and commitment to improving functioning in the market. In effect, the company is focused on hiring from the environment where they operate as a way of creating a positive image to society. Customers measure the success of the company’s products through quality, cost, reliability, and safety. As a result, Lockheed Martin Company has an opportunity for maximizing the rate of return by implementing strategies capable likely to add on the effects of existing approaches.
The human resource department is in a position to implement different recommendations capable of improving the performance of the Lockheed Martin Corporation in different markets. For instance, the company can seek to enhance the level of commitment in the community investment program. As a result, Lockheed Martin Corporation can improve its image to the public by considering some of the programs affecting the community. For instance, the organization can consider the needs of people in society, thus implementing a strategy for funding the functioning of such programs (Petrescu et al., 2017). This activity acts as a survey monkey approach for identifying applications such as youth development organizations, boys and girls clubs in implementing the success of the business in the market.
Lockheed can also improve its corporate social responsibility by increasing the effectiveness of its commitment to protecting the environment. Through this process, the company can increase community loyalty to its products and services by taking the initiative for creating awareness of its commitment to protecting the environment (Petrescu et al., 2017). For instance, schools environmental education program creates awareness to the public in the fight against climate change. This activity affects the increasing viability of the products in the market and increasing the level of community commitment to making purchases of the company’s products and services.
The human resource department can also maximize the level of commitment n receiving success in the company by focusing on hiring a significant number of employees from the target market. Lockheed Company operates in the international market, thus creating an opportunity for varying the corporate social responsibility strategies to be implemented in each market segment. As a result, employee diversification can be strengthened by creating an approach where three-quarter of workers come from the community they target to locate their offices. Employees act as ambassadors of the products and services offered by the company.
The company has to consider various activities in operationalizing mechanisms for improving corporate social responsibility strategies. For instance, an environmental protection campaign is associated with different costs, and it is likely to cause an increase in the level of profits. In effect, Lockheed Martin Corporation can consider the tradeoffs between the expenses incurred in funding the environmental protection campaigns and supporting community-based programs. Ecological protection campaigns and sponsoring community development programs have a marketing impact (Motel, 2016). As a result, the effects of sponsoring such programs can be based on the marketing value for the products. The community evaluates the company’s commitment to supporting the company by considering the number of employees from the society where the business operates. Lockheed Martin Company’s human resource department considers the quality of employees in improving productivity. As a result, the human resource department needs to balance, serving the interest of the community and environmental sustainability.
Lockheed Martin Company faces social, environmental, political, and economic factors that influence its functioning in domestic and international markets. The company applies different strategies that affect the viability of the company in the market. Lockheed Martin Corporation focuses on improving corporate social responsibility by promoting employee diversity and investing in innovative strategies to improve company’s protection of the environment from pollution. The human resource department can develop the company’s corporate social responsibility by funding community social development programs, contacting environment protection campaigns, and hiring workers from the environment.
References
Dean, M. A., & Phillips, M. J. (2015). Model-based Advancements at Lockheed Martin Space Systems Company. In AIAA SPACE 2015 Conference and Exposition (p. 4461).
Department, S. M. (n.d.). Lockheed Martin Corporation PESTEL Analysis & Environment Analysis. Retrieved from http://fernfortuniversity.com/term-papers/pestel/nyse4/2391-lockheed-martin-corporation.php
Motel, L. (2016). Increasing diversity through goal-setting in corporate social responsibility reporting. Equality, Diversity and Inclusion: An International Journal, 35(5/6), 328-349.
Petrescu, R. V., Aversa, R., Akash, B., Bucinell, R., Corchado, J., Berto, F., & Petrescu, F. I. (2017). Lockheed martin-a short review. Journal of Aircraft and Spacecraft Technology, 1(1).
Weiss, S. I., & Amir, A. R. (n.d.). Lockheed Martin Corporation. Retrieved from https://www.britannica.com/topic/Lockheed-Martin-Corporation
