I am not sure how to analyze this. I just need a response to my classmates discu

Question

I am not sure how to analyze this. I just need a response to my classmates discussion below:

In the case of Aviation System Engineering Company (ASEC) matrix things broke down a little differently than they would have for a company that is selling a physical product. ASEC works in the realm of systems development and testing. As such they don’t build the airplane, or the systems being using to accomplish its goals. They do however help develop and test those systems. “We specialize in development, test, acquisition, and delivery support for military and civilian aviation communities” (ASEC, 2018). For the grand strategy matrix the break down took a different shape.

I.Stay the same size, look to reduce costs, stop investing new costs into old contracts, and stop supporting platforms with no future.

II.Expanding into new unrelated markets to current work and take on the role a prime contract holder.

III.Take some Prime contact opportunities and develop alliances, add more contracts related to current skill sets, expand into new geographic markets.

IV.Look internally and concentrate growth with current skills and on current markets and products, determine paths to innovation with current skills.

                  i.Prime contract is the lead company working directly with the government, with sub-contracted companies falling under the prime. ASECs best path forward based on the matrix is quadrant III.

If ASEC is able to capitalize on new prime contract opportunities, while maintaining good sub-contract relationships with larger companies such as Boeing and Raytheon they stand to continue growing into a larger company. While there is risk in losing small business benefits there is more money to be made in growing into a prime contractor. Developing new alliances will provide the opportunity for ASEC to establish themselves into new growing markets and create a stronger foothold on markets they are currently involved in; it will also help meet the third point of quadrant III expanding into new markets.

Explanation / Answer

From the information provided in the case, it seems clear that ASEC is not having a differentiated product. There are many companies having the same service offering as ASEC and thus it is important for the company to evaluate its current market position before strategizing. In a scenario like this, winning and servicing large contracts is the way to go since these bring not only volumes but a sustained cash flow. As government is a key buyer in the military aviation space, winning Prime Contracts should be one of the key priorities of ASEC. Similarly, for civil aviation, being a partner of choice of large corporations should the way to go.

These points are well captured in Quadrant III, which also captures the unique position ASEC is in – being a me-too player in a crowded marketplace.

As suggested, developing alliances and tapping new geographies should also be a focus area.

In short, the organization should look to focus on key accounts and put its heart and soul into it, while also considering geographical and business diversification.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.