¶ … SAIC's problem is that it is vulnerable to downturns in U.S. defense spending, as 90% of its revenue comes from defense contracts. No company is without risk when it only has one major customer -- the solution is to diversify the revenue streams. Taking a look at the list of competitors -- IBM, HP, Accenture are among them. These are large, diversified organizations that are not dependent on DoD business in the same way that SAIC is. There is no reason that SAIC cannot diversify its business away from DoD dependency. In order to execute this, the company will need to look at areas where it can take its existing capabilities and market them to the private sector. This will likely require a shift in the organizational mindset and culture, because there are some rather significant differences between competing for private sector business and competing for DoD business.
A lesser solution, but still an option, is to structure the business around the...
Essentially, this means scaling back the costs of the business somewhat, so that the company will still be profitable in the event of a decline in business. SAIC would seek to become a more efficient company by doing this, retaining much of its capabilities but at the same time trimming the fat from its operating costs. By doing this, the company will still be dependent on the Department of Defense, but it will also be in a position where that dependency is not necessarily a threat to its profitability. This is clearly a second-best option, but it is possible.
The best solution is the first one. It is a somewhat riskier solution, because it involve increasing the level of entrepreneurial activity within the organization, but it is also something that is in line with many of the competitors, who all have various degrees of entrepreneurial mindset in their companies. It is also the solution that direct addresses the core problem that was identified. The second proposed solution does not address the problem, only seeks to mitigate the effects of that problem. Thus, the more aggressive solution that directly addresses the problem is the one that should be tackled.
The proposed strategy of entering new businesses is an entrepreneurial one. SAIC will need to be creative in identifying new uses for the products and…
Saic The two proposed changes for Science Applications International Corporation (SAIC) include diversifying its revenue stream to include a growing customer base in the private sector, and streamlining its operations by attempting to reduce costs while still maintaining its profits. The problem addressed by these two solutions is that approximately 90% of SAIC's business is attributed to the Department of Defense (DoD), and that in the wake of governmental budgetary
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2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will