PESTLE, Strategic Analysis, and Organizational Strategy of L3 Technologies

Running Head:STRATEGIC CASEANALYSIS 1
PESTLE, STRATEGIC ANALYSIS, AND ORGANIZATIONAL STRATEGY OF L3
TECHNOLOGIES
Institutional Affiliation
Date

STRATEGIC CASEANALYSIS2
History of L3 Technologies
L3 Technologies is an American company formerly known as L3 communications Holdings that
started in 1997.The Company deals with the supplies of communications, command and
controls, surveillance and reconnaissance systems and products, intelligence, ocean products,
training devices and services, avionics, instrumentation, navigation products and
instrumentation.L3 technologies is one of the leading Companies in the provision of a broad
range of electronic and sensor systems used in military, homeland security, communication and
commercial platforms. The company is also the key contractor in security and detection systems,
piloting training and aerospace. Their products are mainly sold to the departments of defense,
U.S. Government intelligence agencies, NASA, aerospace contractors and commercial
telecommunications, Department of Homeland and Security and wireless customers (Stanal,
Lwin& Murphy 2011). L3Company was started by Robert LaPenta and Frank Lanza in the
company of Lehman Brothers.The two founders LaPenta and Lanza had served as executives at
Lockheed and Loral before beginning L3. As a result of forming unions and acquisitions, L3
Company continued to expand and has become one of top ten U.S. government contractors.
Some of the companies it was able to merge and able to acquire included Paramax Systems
Corporation from Lockheed Martin, Training & Simulation Division of Raytheon Systems Co.,
based in Arlington, Texas which was formerly known as Hughes Training, Litton Electron
Devices from Northrop Grumman (renamed L3 Electron Devices) in 2001 and more recently in
2016 MacDonald Humfrey (Automation), a Luton, UK based checkpoint security and
automation company among many others.
Mission
L3 Company mission is “to provide customers with state-of-the-art communications and
telemetry solutions for airborne, Intel, maritime, space and terrestrial applications”.
Vision
“To be the most trusted supplier of high-reliability communications solutions.”
L3 Technologies is a worldwide company supported by over 31,000 employees who enable the
company to continue by distributing its products and providing services. L3 Company recorded

STRATEGIC CASEANALYSIS3
$9.573 billion in 2017, an increase of $0.363 billion from 2016 in sales making a profit of $863
million. L3’s cash flow was recorded at $862 million in the same year.L3 Company is said to
have poor and inefficient financial planning which leads the company to keep lots of money in
the bank which could otherwise be put in measures likely to open new windows of opportunities.
The salaries entitled to the executives in the company includes $98,078 for Financial Planning
and Analysis Manager and $88,006 - $111,983 range for Financial Planning and Analysis
Manager based on 7 L3 Technologies financial planning and analysis salary for manager
reported (Thomson Reuters. 2018, January 25).
Organizational structure
Here we look at the structure in terms of corporate and management structures. L3 Company is
divided into four subsystems which includes Communication systems that deals with delivering
of products and services for the global communication market, space, ground, specializing in
strategic and tactical airborne, and sea-based communication systems.The other system is
Electronic Systems which provides a wide variety of subsystems, components, systems and
related services for military, products, and commercial customers.Sensor Systems offers varied
services inland, space and cyber domains,airborne and innovative sensor technologies in the
maritime and the fourth system is Electronic Systems that provides various components such as
subsystems, products, systems and related services for commercial and military
customers(Ferreira ET AL., 2015).
The main competitors of L3 Technology are UTC Aerospace Systems, Northrop
Grumman, Lockheed Martin, Harris Corporation and Honeywell.Despite the completion L3
Technologies faces it has managed to thrive in market because of putting their customers’ needs
as their first priority, retaining the potential and key employees and high new ones with the
needed capabilities, capabilities of their facilities, personnel, and equipment, innovative and
effectiveness of technologies, systems and R&D programs (Chen ET AL., 2012, June).
Internal Environmental Factors (SWOT)
Strength: The greatest strength for L3 is the acquisition and merging with other companies
which have greatly helped in acquiring very competitive personnel with talents in science,
engineering, architecture and developers cleared by the U.S. government Securities. There is also

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a high demand for securities across the border where different countries are looking for better
solutions. This is evidenced in 2013 when the Company won a contract worth $ $38.5 millionto
supply SATCOM terminals to Australian Defense Forces with other contracts amounting to $6 to
provide engineering support, program management and other services for Canada’s CC-150
Polaris fleet.This has helped in the expansion of international business which has resulted in
increased market share. L3 takes high considerations in diversity and Inclusion amongst their
employees and is seen as an opportunity(Watson&Strayer2010).
Weakness and threats: There is a gap in products range where consumers do not have a range of
products to choose from which is likely to benefit the competitor in the market (Vogel-Heuser et
al., 2014). L3 communications have poor financial planning as the Company has more cash in
the bank which could otherwise be used to benefit it the more. The other weakness with L3 is a
limited success to explore other business other than the core business segment they have(L3
Technologies 2018, January 25). The company has limited expansion towards adjacent products
segment due to the fact that its organizational structure is only friendly to current business
model(Hakiri et al., 2014). L3 research and development investment is below other fastest
growing competitors in the industry posing a big threat to the future of the company through its
investment is above the industry average on research and development. Last and not least L3
lacks good products demand forecast and this leads to missed opportunities which when rectified
its position in the market can rise against its competitors (L3 Technologies 2018, January 25).
External Environmental Factors
Demographics
The Aerospace division of L3 Technologies is located in Greenville, TX. It is the largest campus
of the four segments with over six thousand employees and is located fifty miles from Dallas
with an approximate population of 26 thousand. This limits the amount of local talent from
which to draw. Therefore, it maintains a diverse group of employees recruiting talent from
similar markets as itself. Much of the talent required is highly specialized, such as aerospace
engineers, aircraft mechanics, and software engineers, therefore, L3 recruits through an internet
presence and career fairs to attract talent. L3 also recruits recent college graduates and intern
partnerships through their co-op program to attract promising new talent. More senior recruits