Investment Scope Analyzing Boeing and Lockheed Martin

Question: Describe about portfolio of Boeing and Lockheed Martin. Answer: Introduction This report tries to evaluate through the factors like company strength, competition, advantages and past records that of Boeing and Lockheed martin with the company that works feasible to invest (Shaw, 2011). Portfolio of Boeing The worlds biggest company in aerospace and leader in commercial jetliners manufacturing along with defense security systems and space. This American company is largest exporter of these systems along with support to other 150 countries and their governments in use of these technologies (boeing, 2016). The company products and services are military and commercial aircrafts, the weapons, satellites, electronic systems related to defense, launch, advanced communication and information, logistics and the training that is performance based. The company corporate office operating from Chicago has employee strength of 1,60,000 based out of united states and other more 65 countries. This speaks of the much talented, diverse and the innovative staff. The company also leverages on the large skilled talented people those working for their suppliers across the world (boeing, 2016). The two business units Boeing as a company is organized are the commercial Airplanes and the areas of Defense, security and space. The units are supported by Boeing Capital corporation who is global provider related to the financial solutions, the group related to shared services that gives Boeing worldwide services that ranges broadly. The Boeing engineering, the technology and operations helps acquiring, developing, applying and protecting processes and the innovative technologies. The company working in these two markets faces the challenges with economic downturn with the world market but at the same time, it provides the Boeing customers with financial solutions (Sato, 2013). The company is valued approximately by 2015 end with more than dollar 100 billion makes it the company that has financial and global strength and reach. Further the company strategic advantage are the innovation that the people bring to the fore front that has helped the company to handle competitors though the company had to go through the difficult times in the past but people being the core to success of Boeing. The company had also looked in the past with merger with Lockheed for Rockets that had run into issues with legal terms and the company strategic advantage of commercial and the defense systems have evolved through the model of innovation. The fact that Boeing had been through periods of merger and acquisitions that with the innovation the company emphasizes on the people power and the market along with the competition that has helped the company to thrive. The company has been working towards creating highest customer value and strong future for employees. Therefore, it is worth investing in this company that has innovation and commercial business that provides the edge. Portfolio of Lockheed Martin The company operating out of Bethesda, Maryland headquarters in US is into aerospace and global security. The company has estimated 98,000 employees working world over and primarily engaged in areas of research, the design, manufacture, development, integration and advance technology sustainment services and products (lockheedmartin, 2016).The company is mainly into defense unlike the Boeing. The company mainly deals with US Defense department and the government federal agencies in US. The company operations spread over 590 facilities in US and in territories and nations internationally with more than 70 locations. The financial performance of the company as of 2015 estimated with sales of dollar 46.1 billion and with backlog amounting to dollar 99.6 billion. The operational cash flow are dollar 5.1 billion. The company operating units into these broad areas related to business are organized like the Aeronautical, the fire control and the missiles, the mission training and systems, and the areas of space systems. The fact that the company is primarily involved with defense deals mostly unlike the Boeing that has been more profitable in terms of the financial strength and the international reach; however, the one advantage that the company has its strong engineering strength that is the strategic advantage with the company in aerospace defense area. The challenges though are many with the fall of the cold war era the deals in defense is limited to the strategic decisions of the government of the countries. The market is demanding with higher areas of technology and defense systems that the company needs to meet which however is true for all the players. The move that has indeed helped the company is to stick to the engineering of the defense aerospace technologies is bringing back the company to provide large deals in defense that it needs to capitalize. Conclusion Thus based on the financials and the reach of the both companies that is Boeing and Lockheed Martin provides the edge to Boeing regarding the investment to be made. Apart from the above, the Boeings strength in the commercial Airlines space and innovation apart from the defense market provides with greater market and technological strength. References Sato, R. (2013). Risk assessment in airlines stocks market.J. Transp. Lit., 7(2), pp.352-372. Shaw, S. (2011).Airline marketing and management. Burlington, Vt.: Ashgate. boeing.(2016).BoeingInternational.[online]Availableat:https://www.boeing.com/company/key-orgs/boeing-international/ [Accessed 8 Sep. 2016]. lockheedmartin.(2016).lockheedmartin.[online]Availableat:https://www.lockheedmartin.com/us/who-we-are.html [Accessed 8 Sep. 2016].