Internal Analysis Of Sikorsky Aircraft Corporation

Sikorsky Aircraft Corporation is one of the main helicopter manufacturers in the world. The company has proved to be successful in its business development. At the same time, its business success depends on multiple factors, while the further development of the company may raise substantial challenges which the company will have to overcome to maintain its position in the world market and to keep progressing. In this regard, the internal potential of the company is particularly important because the company progresses on the ground of its internal resources and potential. The internal analysis of Sikorsky Aircraft Corporation reveals that the company has a considerable potential, but there are some issues, which may raise substantial barriers in face of the company in the future and Sikorsky should come prepared to overcome them successfully.

Organizational

            Value

The value of Sikorsky Aircraft Corporation production facilities, infrastructure and offices is high. The development of Sikorsky Aircraft Corporation involved the expansion of the company’s infrastructure and production facilities worldwide. Today, the company operates worldwide and develops its infrastructure respectively to the expansion of its business operations (Daft, 2007). At this point, it is worth mentioning the fact that the company tends to the localization of production and builds production facilities, plants and related infrastructure in target markets. In addition, the company develops its distribution network as well to reach the target customer group faster and more effectively. In this regard, Sikorsky has proved to be successful and increased its value due to the extensive expansion of its production facilities and network worldwide.  The value of the organizational structure of Sikorsky Aircraft Corporation is high because it is quite effective. In spite of the large organizational structure, Sikorsky is still capable to the effective decision making process. Even though the company is based in the US mainly, it operates worldwide and has its outlets abroad. Hence, the company has to interact effectively with all of its units and accelerate the cooperation between all units to maintain the positive organizational performance. In this regard, Sikorsky’s value increases since the company has managed to establish the effective communication between its units.

            Rarity

The rarity of plants, production facilities and infrastructure of Sikorsky Aircraft Corporation is rather moderate than high because the company has large aircraft manufacturing plants, where the mass production of aircrafts is well-organized. In fact, other leading aircraft manufacturers of the world have similar infrastructure and production facilities. In this regard, Sikorsky Aircraft Corporation is similar to other behemoths of the aircraft industry in the world.

The rarity of the organizational structure of Sikorsky Aircraft Corporation is high. Even though the company does not offer many exclusive approaches to the organization of its business and other large aircraft manufacturers have the similar organizational structure, Sikorsky Aircraft Corporation still remains one of the leaders in designing, development and manufacturing of helicopters. In this regard, Sikorsky Aircraft Corporation traditionally focuses on innovativeness and the company invests considerable financial resources into its research and development department.

At this point, it is worth mentioning the fact that Sikorsky Aircraft Corporation has lost its rarity the company had half a century ago, for example, because the production of helicopters is not the exclusive domain of Sikorsky anymore. Instead, there are many rivals that manufacture helicopters that challenge the position of Sikorsky in the global market. In such a situation, the company cannot count on its rarity any more at such a rate as it used to do before. Nevertheless, there are still some exclusive products and innovations that help the company to take a competitive advantage in the market.

            Imitability

The imitability of the production facilities and infrastructure of Sikorsky Aircraft Corporation is relatively high because other aircraft manufacturers have similar physical structure. The mass production of aircrafts requires the development of plants, supply chains, infrastructure and distribution channels, which are, to a significant extent similar. In such a situation, only exclusive aircraft manufacturers that produce rare and exclusive vehicles have the low level of imitability, for example, when the aircraft assembling process involves manual labor mainly (Sanna, 2005). As for Sikorsky, its physical infrastructure is similar to that of other large aircraft manufacturers. The imitability of the organizational structure of Sikorsky Aircraft Corporation is relatively high because large aircraft manufacturers use the similar organizational structure to develop their business successfully. They focus on the development of the supply, production and distribution of their aircrafts worldwide.

            Organization

The organization of the production process, supply and distribution channels of Sikorsky Aircraft Corporation is also similar to those of its major rivals. The organization of the production process requires the use of the development of the effective supply of aircraft parts and materials to keep the production running and Sikorsky is similar in this regard to other companies.

The organizational structure of Sikorsky Aircraft Corporation is quite effective because the company has managed to create the effective organizational structure that allows the company to operate worldwide and to keep growing. At the same time, Sikorsky has become a part of the Lokheed Martin but the company has preserved its autonomy in the corporate organizational structure and operations. In such a way, Sikorsky remains to be the autonomous unit and continues its operations as it used to do before the acquisition of the company by Lockheed Martin. Therefore, at the moment, Sikorsky has to integrate into the organizational structure of Lokheed Martin but the wide autonomy of the company allows Sikorsky to operate comfortably without drastic organizational changes. In this regard, the specialization of the company plays a particularly important part in the performance and position of SIkorrsky within Lokheed Martin organizational structure. Sikorsky specializes on helicopters design, development and product, which differentiates its products and services from other units of Lokheed Martin.

At the same time, the development of Sikorsky organizational structure tends to integrate into the performance of Lokheed Martin and its organizational structure. At this point, it is worth mentioning the common project of Sikorsky and Lokheed Martin to create new aircrafts that basically combine features of both helicopters and planes. In this regard, the further integration of Sikorsky in Lokheed Martin is virtually inevitable because being a part of the larger company Sikorsky cannot conduct independent policies anymore. Its autonomy will likely to preserve in the field of helicopter development and marketing of helicopters manufactured by the company.

Conclusion

Thus, Sikorsky Aircraft Corporation has proved to be a successful company operating in the aircraft manufacturing worldwide, but the company experiences some internal challenges and difficulties, which the company has to overcome to keep progressing and enhancing its competitive position in the world market. The development of Sikorsky now involves considerable organizational changes triggered by its acquisition by Lokheed Martin. Nevertheless, Sikorsky remains one of the leaders in the world helicopter manufacturing industry and the current organizational structure, production process and uniqueness of its technological developments allow Sikorsky to maintain a strong competitive position in the global market. In actuality, Sikorsky preserves the extensive autonomy within the new organizational structure and preserves its key elements of the traditional organizational structure. However, Sikorsky will have to integrate closely into Lokheed Martin to enhance the cooperation and interaction between the parent company and Sikorsky.

References:

Daft, R. (2007). Understanding the Theory and Design of Organizations. New York: Random House.

Volti, R. (2015). Society and Technological Change. New York: Random House.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 29, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]
close
Haven't found the right essay?
Get an expert to write you the one you need!
print

Professional writers and researchers

quotes

Sources and citation are provided

clock

3 hour delivery

person