Thales Group Research Portfolio: Strategies for Competitive Advantage

Business 1
BUSINESS: THALES GROUP RESEARCH PORTFOLIO
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Business 2
Introduction
Effective business strategic plans are developed with the focus on both internal and external
environments affecting or influencing the business. Many businesses tend to focus much on their
internal environments by analyzing their business strengths and weaknesses. Competition has
rapidly increased in the modern business world forcing many companies to develop their
strategic plans very carefully to achieve their performance goals and objectives (Gerow et al.
2014, p. 1072). There is, therefore, a great need for companies to develop as well as implement
efficient business by repositioning their firms with the changes in the business environment for
them to remain competitive in the industry. The business analysis, therefore, plays an essential
role in the development of a strategic business plan in understanding the various or specific areas
of concern through which the business should focus regarding resource development to enhance
business efficiency (Wolf & Floyd, 2017, p. 1762). This essay seeks to develop a research
portfolio of the Thales Group which will help us understand the origin of the company, the
business strategy, the company structure as well as the company strengths and weaknesses.
Background information on Thales Group
Thales Group is a French multinational company that operates in 56 countries globally with most
activities of the company being based in France. The company was founded in the year 1968
through a business merger of Thomson Brandt Company and the Compagnie Generale de
Telegraphie San Fil (CSF). These two companies were operational before the alliance with the
Thomson Company having being established in the year 1893 whiles the CSF being operational
since its establishment in the year 1918. The company operates in three different markets

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including the Aerospace, defense and security markets as well as the transport market or industry
(Hill et al. 2014, p. 14). The company designs and manufactures electrical systems for all the
above markets and over the decades the company has been able to develop close relationships
with local customers.
The company has been able to employ 64 000 employees globally with 34 000 employees
working in France. The company culture for working for the employees is based on a proactive
policy which advocates for corporate responsibility and plays a vital role in managing company
risks as well as driving company performance. It is a significant player in the French economy in
the high technology industry with over 70 sites in 7 regions (Mcdonald & M.A.L.C.O.L.M,
2016, p. 132). The company business strategy is based on innovative solutions and has achieved
a significant milestone in the innovation division with innovations such as the magnetic radar
used in the aerospace and defense industry. The company strength is in its ability to provide
innovative solutions to solve critical security and defense as well as transport systems.
The structure of the Thales business is through differentiated products offered in different
regions. The company produces protected vehicles including the bushmaster and Hawkeye in the
small regional towns of Bendigo in Victoria, Australia. The company space, aerospace,
communication and data systems are produced in France while the tactical electronics systems
are designed and built in the United States. Such a structure is strategically planned with a
significant focus on the markets and the customers of the company (Botelho de Sousa et al. 2014,
p. 4). The company plays a significant role in keeping the public safe and secure as well as
safeguarding vital infrastructure and protecting the national security interests of different
countries.

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A PESTEL analysis describing Thales Operational Landscape
To understand the external influences of a company most companies have embraced the use of
PESTEL Analysis which has been used as an efficient analytical tool for strategic business
planning. When companies analyze their external environments, it is in a position to maximize
the company available opportunities as well as minimize the possible threats to the company
(Matelly & Lima 2016, p. 71). The analysis, therefore, focuses on understanding the political,
economic, social, technological and environmental as well as influences for a business.
Depending on the landscape where Thales Group operates or offers their services to their three
different markets, the company has been exposed to different influences which in one way or the
other have impacted the business strategy.
Thales Political influences: the dominant political forces for Thales Company include the rapid
populist sediments as well as the geopolitical tensions in the global market. The increasing
political pressures in various parts of Thales essential markets such as in the Middle East, United
States, South Africa among other countries has provided an excellent opportunity for increasing
Thales Market since most governments have shifted into obtaining external or private
consultancy services for their defense and security systems instead of developing their existing
capabilities. Secondly, there is increased shift towards anti-globalization affecting regional
development which has changed the French and Australia as well as the UK industries due to the
impact of Brexit and the US elections.
Social influences: increasing aviation demands in the emerging markets such as Middle East,
Africa, and Australia have provided the company with an opportunity to diversify their services