Internal & External Environment

Tale of Contents

Introduction2

SWOT analysis2

Strengths3

Acquiring BBT technologies3

Reliable financial performance4

Weaknesses4

Lack of scale compared to competitors4

over dependence on the US government5

Dependence on few suppliers5

The bargaining power of suppliers6

The bargaining power of buyers6

Differentiation (STRATEGY)6

Over-dependence on US government contract7

Heavily dependence on few suppliers (7

Threat of several competitive competitors (THREATS)8

Competitive rivalry)8

Recommendations and conclusion9

Internal & External Environment

Introduction

In 1922, Raytheon was founded as an American appliance corporation. After 88 years' operating, Raytheon has become one of the largest defence suppliers in the fortune top 500, and is ranked at 95 in the top 500 through the newest statistics data in 2010. The company is focused on developing defence, homeland security and government market globally. Raytheon focused on supplying defence electronics, information technology, space, and technology services. The key products and services which are provided by Raytheon including missile systems, integrated defence systems, network centric systems, space and airborne systems, intelligence and information, and technical services. According to the 88 years' operating, the company was mainly expanding its scale through adapting an aggressive acquisition strategy. Such as: acquiring Amana Refrigeration in 1965, takeover a textbook publisher D.C. Heath in 1966 and three other petrochemical companies which is cited in Marketline (2010). Raytheon faced three aspects strategic challenges in the future. According to the overview of Raytheon (2010), it explained those three challenges are including Government contract and regulation, heavy rely on the few suppliers, and the pressures arising from the competitive competitors which is cited in Marketline (2010).

SWOT analysis

In a universal situation, the SWOT analysis is often used as planning tool to assess the strategic which are implemented by the corporation. The SWOT is divided in to strengths, weaknesses, opportunities and threats which is cited by Morrison (2006, p.31). Following will analysis the internal environment of Raytheon in terms of strengths and weaknesses.

Strengths

According to Marketline (2010), there is an introduction about the strengths of Raytheon. The strengths are divided into three parts. Those are including diversified product and well balance revenue, acquiring BBT techniques, and reliable financial performance.

Diversified product and well balance revenue of Raytheon

Raytheon operates a diversified product as the main competitive strategy. Six business fields are involved by Raytheon. They are network centric systems, missiles systems, space and airborne systems, integrated defence systems (IDS), and intelligence and information systems (IIS). The IDS is focusing on balancing its knowledge field and capabilities in some aspects. Those fields are involved in command, effects and mission support, control and communication, air and missile defence, and civil security response systems. The IIS is specialized in providing the intelligence and information solutions in terms of ground processing, unmanned ground systems, and homeland security.

In addition, Raytheon has well balance revenue. From the (Pie 1), it clearly shows that there is well balance revenue of Raytheon. TS generate 20% of total revenue, which is considered as the biggest revenue. Both MS and IDS get a 19 % of total revenue, which is considered as the second biggest one, followed by NCS (16%), SAS (15%), and IIS ...