BAE SYSTEMS SWOT ANALYSIS

BAE Systems is a plc which provides defence, land, aerospace, naval and security services across the globe.

STRENGTHS

• Focus on R&D with over 85,000 people employed.
• Strong growth and revenue profits.
• Has a global presence in countries like: Australia, India and Saudi Arabia.
• Diversified business maintainencee training and consulting.
• Revenue of £16.5 billion in 2013

WEAKNESSES

• Relatively low employee productivity.
• Unfunded employee post-retirement benefits.
• Allegations of corruption have affected brand image.
• In 2013 cash reserves fell by £1.11 billion.

OPPORTUNITY

• Strategic acquisition would help build the foundation.
• Rise in global defence spending.
• Growth in global aerospace and defence market.
• 70% of the UK's defence industry revenue is generated from domestic trade.

THREATS

• Intense competition from: Lockheed Martin and Boeing.
• Change in government policy might affect profits.
• Slow down in economy will result in budget cuts for emerging markets.