Analysis of Thales protected vehicles division (Bendigo)

|[Type the document title] | | | |[Type the document subtitle] | | | |[Pick the date] | | | |Lenovo | Contents Introduction 2 PESTEL analysis 2 Porter’s five force analysis 4 A Business Level Strategic analysis of Thales protected vehicles division (Bendigo), 6 Conclusion 8 Introduction Thales is a French multinational organisation operating in different industries. PESTEL analysis The arm industry is the global manufacturing industry dealing with the sale of weapons, research and development, engineering

qwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasd
fghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmrtyuio
[Type the document title]
[Type the document subtitle]
[Pick the date]
Lenovo

Contents
Introduction...........................................................................................................................................2
PESTEL analysis......................................................................................................................................2
Porter’s five force analysis.....................................................................................................................4
A Business Level Strategic analysis of Thales protected vehicles division (Bendigo),............................6
Conclusion.............................................................................................................................................8

Introduction
Thales is a French multinational organisation operating in different industries. It primarily
builds electrical system and provides services in aerospace, defence and transportation
market. The company operates in more than 56 countries and has a workforce of 64,000
employees. It is the tenth largest defence contractor of the world. It has an international
subsidiary, which contributes to a significant amount in revenue generation. Basically, the
company deals with the manufacturing of electronic equipment for the aerospace and the
defence industry. It is a multinational company, which designs and delivers high quality
solutions in the area of aerospace, ground transportation, defence and security. In the present
report, and analysis of the strategic moves and tactics of the company has been conducted.
PESTEL analysis
The arm industry is the global manufacturing industry dealing with the sale of weapons,
research and development, engineering and production building. In the present, the impact of
the external factors on the armed companies has been analysed.
Political factors: The arm manufacturing and trade is a complex industry with different
divisive policy areas. There are several bodies, which request the ban of the whole industry as
they consider that the defence trade is unethical. There are several polices imposed on the
arm industry as the companies cannot determine, which actors are actually transferring
weapons and the supply chain is getting long and complex. A large number of developed
companies have formed a treaty, which controls the export and international trade of arms.
France has also applied a domestic arms control regime which establishes rules and
procedures to trade in military technology and equipment (Sakas, Vlachos and Nasiopoulos,
2014). The government encourages the companies to share information regarding arm
manufacturing and supply to the international bodies. It has taken several measures to prevent
and control illicit flow of weapons in different countries. The Australian government supports
the research and development in the arm industry (Saeidi, Sofian, Saeidi, Saeidi and Saaeidi,
2015). Recently, Thales has partnered with Australian Universities to design new age
submarines.
Economic factors: In the arm industry, the economic profitability of the production plays a
key role in the large-scale production of the defence products. The government and the firms

benefit a lot by selling the armed equipment in large quantity. It reduces the unit cost. Also, if
the item is procured by the other country’s armed forces, it reduces the overall cost to the
company and increases the profitability. In the present, the arms and defence industry is
characterized by high concentration of production activity within small number of corporate
organizations. It has monopolistic market structure and few companies fight to attain
maximum market share. The economic factors have little impact on the trade of arms industry
as the buyers are the government, who are needed to make a robust armed force for the
country (Taber, 2013). It is a major company in France and provides several jobs, as a result,
the government supports the operations of the organization.
Social factors: The social factors refer to the current trend in the external market, which
impacts on the operation of the company. Thales is globally recognized as he to brand in the
manufacturing of arms and electronic devices. It has operations in over 120 countries with
3500 customers. It also emphasizes employee engagement. In France, the company has in-
house university, which supports employee training and development at all stages of their
professional and personal growth (Schilke, 2014). However, in the past few years, the
company has faced corruption charges. In 2004, World Bank blacklisted the company as it
was found to be engaged in fraudulent practices in Cambodia.
Technological Factors: The arms and defence technologies is one of the most sophisticated
technology equipment trading company. It uses cutting edge technology to develop
sophisticated products. The arm industry has to constantly indulge in research and
development to design innovative products (Tantalo and Priem, 2016). In the current, the
company has production facility in the France, the USA and Australia. As a result, the
company can access excellent infrastructure and technology in these countries. In Australia,
the company has established a production facility at a small town; however, it has established
adequate infrastructure for adequate transportation of the raw material.
Legal factors: In the arms manufacturing industry, there is several numbers of laws applicable
in the manufacturing and international transfer of the arms. There are also several laws
related to prevent corruption in the industry. The USA, France and Australia are part of
international framework, for the international trade of the weapons.
Environmental factors: There are a large number of environmental laws and factors, which
might impact the operations of the company. However, Thales has promoted itself as an
environmentally responsible company and uses product and system design in its operations.

The environmental laws present in the USA, France and Australia are strict. Australia has
established various laws to protect coral reef and indigenous community. It also emphasizes
the strategic environmental programs which increases the sustainability of the organization
(Albrecht, Bakker, Gruman, Macey and Saks, 2015).
Porter’s five force analysis
Major competitors and positioning:
There are several competitors of Thales; however, the major competitors are Rockwell
Collins and SAAB. The Rockwell Collins was established in 1933 and had headquarters in
Iowa. The company generates $7.2 billion higher revenue than other companies. SAAB is
also a top competitor, which has headquarters in Stockholm. It operated in defence industry
and generated about 20% of the total revenue (Datafox, 2018).
It is one of the largest arm manufacturing companies. The French multinational company is
known to be innovative and highly productive. It has a sound financial backing and
operations over hundreds of countries. It has made a distinguished position for itself in the
commercial, defence, space and the service industry. However, in the recent times, several
competitors such as Boeing has emerged; therefore, the company is trying to become more
productive.
Bargaining power of Suppliers: The supplier of the company is electronic manufacturing
companies and metal suppliers. Thales heavily depends on its supplier for raw materials for
the production of arms and electronic equipment. The raw materials are not limited to
aluminium, titanium and composite material. The suppliers also include technology firms,
which develops technology for the manufacturing of the aircrafts (Liao, Rice and Lu, 2015).
The bargaining power of the suppliers is adequate, which is limited by the monopoly in the
market and the financial sounding of the organization.
Bargaining power of the customers: In the present era of information, the power is shifted in
the hands of the customers, as the customer market has become Transparent. The primary
customers of Boeing Group are government, military and the space agencies. Here, it can be
stated that the bargaining power of the customers is high due to several reasons. In this
industry, the technological innovation has primary importance and there are only a few
brands, which are providing high customer value (Palandeng, Kindangen, Timbel and
Massie, 2018). Thales Group is one of the leading brands in the industry; therefore,

bargaining power if the customers is average. The major competitors of the organization have
established a strong relationship with the governments, which is positively impacting the
business of the competitors.
The Threat of Substitutes: In the arms and the electronic equipment manufacturing industry,
there are only almost no substitutes. There is almost no competition no the threat of substitute
product is low. Further, it can be stated that Thames has carved a specific position for itself
by technological innovation and high quality of products. Therefore, there is no fear of
competition.
Threat of New Entrants: In the weapon and electronic equipment industry, the barriers for the
new entrants are very high. There are several challenges such as high financial investment,
supply chain and availability of skilled human resource creates significant barriers to the
entry. Along with it, in the weapon manufacturing industry, there are several barriers related
to laws, regulatory environment and compliance cost (Yun, Won and Park, 2016).
Level of Competitive Rivalry:
In the weapon manufacturing industry, there are only a few large-scale companies. However,
the competition amongst them is quite high. There are several companies such as BAE
systems, Northrop Grumman, Lockheed Martin, Boeing and Textron. They are the major
competitors in aerospace and weapon manufacturing companies (Datafox, 2018).
A Business Level Strategic analysis of Thales protected
vehicles division (Bendigo),
The Thales protected vehicle are being manufactured at Bendigo. The company has selected
Bendigo due to its diverse manufacturing and mining sector. The municipality is always open
for business and has been the home of several manufacturing plants. The government has also
made high investment in economic and residential growth which offers pool of human
resource talent to the business organization. As the company is dealing with the
manufacturing of sensitive weaponry, it does not enquire that this technology is leaked to
other companies. Establishing the manufacturing plant in Bendigo ensure that the company
has adequate level of privacy. The location and weather of Bendigo is ideal for the
manufacturing plant. Bendigo is strategically located at the centre of Victoria, which offers a
dry climate in the county (Bendigo, 2018). It is easily accessible to other cities and location

as it has easy access to ports, rail infrastructure and the airport. However, the outsourcing of
important equipment from other parts of the world will be challenging for the organization.
6) A Business Level Strategic analysis of Thales cyber-
security division
Thales offer cyber-security system to its customers, which ensures optimal performance of
the IT system, resilience and security for the whole organization. It is specifically important
in the era of new technology and cyber threats. The company offers cryptographic security,
cutting edge strategies and provides security framework for government and military
infrastructure, energy utilities and transportation. The company recruits the best talent and
has a team of 5000 engineers and 2000 experts in security. The company has established a
research and development department with the scientific and technical community. The
company is a leader in knowledge sharing and attracting global talents (Thales, 2018). The
company has established a human resource department such that it anticipates and innovate
business development and organization and environmental support.
The human resource strategy of the cyber security department is aligned with the
organization, strategy and the business operations of the company. The HR management
becomes an effective management partner in addressing the current talent issues and meeting
the needs of the future talent demand (Block, Kohn, Miller and Ullrich, 2015). The
organization has established a competitive compensation structure to attract, develop add
retain the organization talent. In order to create a pool of talent, the organization emphasizes
the professional development through training and development activities.
Benefits of Thales strategic relationships
In the research and development, Thales has built a strategic partnership with the leading
edge research agency, CNRS. They have established a long term agreement for five years. In
the arrangement, both the organizations will support each other in creating value-added
innovation for the customers and users of the organization (Thales, 2015). Thales has also
acquired Gemalto, to strengthen its foot in the field of digital security (Helfat, and Peteraf,
2015). The merger was conducted to support each other’s aim of digital transformation and
innovation. It will accelerate Thale’s digital strategy in which the company will invest more

than 1 billion euro in cyber security, artificial intelligence and data analytics. It will also
benefit the stakeholders of the organization.
Conclusion
Thales is a French multinational organisation in weapon manufacturing and electronics
manufacturing industry. The external environment of the organization suggests that there are
macro factors such as government policies, environmental laws and the economic conditions
of the country or government, which might impact the business of the organization. The
company is operating in different countries and has adopted several strategic moves to create
a specific place in the international market.

References
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1),
pp.7-35.
Bendigo. (2018). Made in Bendigo: City of Greater Bendigo. [Online]. Available at:
https://www.bendigo.vic.gov.au/sites/default/files/2016-09/City-of-Greater-Bendigo-Made-
in-Bendigo.pdf [Accessed on: 19 March 2018].
Block, J.H., Kohn, K., Miller, D. and Ullrich, K., 2015. Necessity entrepreneurship and
competitive strategy. Small Business Economics, 44(1), pp.37-54.
Datafox. (2018). Top 5 Thales Competitors. [Online]. Available at:
https://datafox.com/competitors/thales [Accessed on: 19 March 2018].
French Government. (2016). FRANCE AND THE CONTROL OF THE ARMS TRADE.
French government.
Helfat, C. E., & Peteraf, M. A. (2015). Managerial cognitive capabilities and the
microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), 831-850.
Liao, T.S., Rice, J. and Lu, J.C., 2015. The vicissitudes of competitive advantage: Empirical
evidence from Australian manufacturing SMEs. Journal of Small Business
Management, 53(2), pp.469-481.
McMohan, A. (2018). Thales partners with Australian universities for Future Submarine
research. [Online]. Available at:
https://www.defenceconnect.com.au/maritime-antisub/2232-thales-partners-with-australian-
universities-for-future-submarine-research [Accessed on: 19 March 2018].
Palandeng, D.I., Kindangen, P., Timbel, A. and Massie, J., 2018. Influence Analysis of
Supply Chain Management and Supply Chain Flexibility to Competitive Advantage and
Impact on Company Performance of Fish Processing in Bitung City. Journal of Research in
Business, Economics and Management,(10), 1, pp.1783-1802.

Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of
competitive advantage, reputation, and customer satisfaction. Journal of Business
Research, 68(2), pp.341-350.
Sakas, D., Vlachos, D. and Nasiopoulos, D., 2014. Modelling strategic management for the
development of competitive advantage, based on technology. Journal of Systems and
Information Technology, 16(3), pp.187-209.
Schilke, O., 2014. On the contingent value of dynamic capabilities for competitive advantage:
The nonlinear moderating effect of environmental dynamism. Strategic management
journal, 35(2), pp.179-203.
Taber, N. (2013). Commercial Interests, Political Influence, and the Arms Trade. Clocks and
Clouds 3(1).
Tantalo, C. and Priem, R.L., 2016. Value creation through stakeholder synergy. Strategic
Management Journal, 37(2), pp.314-329.
Thales Group. (2018). Thales and the environment. [Online]. Available at:
https://www.thalesgroup.com/sites/default/files/asset/document/Thales_Environnement_eng.
pdf [Accessed on: 19 March 2018].
Thales. (2015). R&D: Thales and CNRS extend strategic partnership. Press Release.
[Online]. Available at:
https://www.thalesgroup.com/sites/default/files/asset/document/pr_150924_rd_thales_and_cn
rs_extend_strategic_partnership_vf-1.pdf [Accessed on: 19 March 2018].
Thales. (2018). Critical Information Systems and Cybersecurity. [Online]. Available at:
https://www.thalesgroup.com/en/global/activities/security/critical-information-systems-and-
cybersecurity#who-we-are [Accessed on: 19 March 2018].
Yun, J.J., Won, D. and Park, K., 2016. Dynamics from open innovation to evolutionary
change. Journal of Open Innovation: Technology, Market, and Complexity, 2(1), p.7.