BAE SYSTEMS

Sustainable Business Practices at BAE SYSTEMS

Sustainable Business Practices at BAE SYSTEMS

Executive Summary

BAE Systems is a UK based multinational company for security, defence and aerospace engineering. BAE Systems have been striving hard to sustain in this dynamic world. They are working on different innovative projects which can help them to survive and earn high revenues. For this BAE reorganized its European joint ventures in 2001. In 2004 BAE reviewed their businesses which result in different acquisitions and mergers. In 2005 these strategic expansion resulted BAE to become 2nd largest land system suppliers. During year 2008 and 2011 BAE was able to acquire 5 cyber security companies. As a part of its strategic expansion BAE stepped into support services. The leaders and decision makers of BAE Systems kept on acquiring different companies and relevant businesses according to the need of time. They acquired a Marine support company in May 2010. During their journey BAE system also faced declines. In 2012 a decline of 10% was seen in the revenues of BAE Systems but they kept on striving. In May 2012 there was an agreement between the UK government and Saudi Arabia government which resulted in £1.6 billion contract awarded to BAE (Szakonyi, M. 2010; Hoyos 2012). There are news of merger of BAE Systems and EADS NV in the market (Reuters, 2012). BAE Systems has also stepped into a diversified field where none of its competitor has yet stepped. They have stepped into sports technology to support the athletes to improve their efficiency. They have designed such devices which will help the experts and coach to focus more on sports to increase the efficiency and productivity of their sportspersons.

Introduction

BAE Systems was formed by the merger of two famous British companies, one was (MES) Macroni Electronic Systems and the other was (BAe) British Aerospace. MES was a subsidiary of (GEC) General Electric Company and its functions includes electronic defence equipments and building of naval ships. On the other hand BAe was the manufacturer of aircraft, munitions and naval systems. In Initial BAE Systems identified integrated system for aircrafts, applications for land and naval forces, Airbus and military support services as the growth areas for the company.

BAE Systems has worked hard to maintain their sustainability. Despite of the fact that the environment of the world is changing dynamically, BAE Systems has integrated changes in their environment so as to cope up with the changes. It was seen that when the government lowered their budget on defence items like tanks and warships BAE Systems noticed the change and acquired 5 cyber security companies to counter the effects of reduced spending. To sustain in the market BAE Systems also restructure the organization. There was no pause on acquiring new technology by BAE Systems. They kept on moving to mergers and acquisitions. BAE Systems not only kept on investing and acquiring companies but they at times sold their majority shares to different organizations.

BAE Systems and Their Sustainability Strategies

As a part of their growth and sustainability strategy ...