Textron's Web Site (Www.Textron.Com) to

¶ … Textron's Web site (www.textron.com) to see whether the firm still operates with the five divisions. While at the web site, determine whether the industrial division has the same product segments that are mentioned in the mini-case. If you find differences, what do you think influenced the decisions to make changes to one division's product segments or to the firm's set of divisions? The reason why Textron increased the number of divisions from five to nine; is because they were overly concentrated in: the defense and aviation sectors.

In the event that there was some kind of significant slow down or decrease in defense spending, this could have an impact upon the overall bottom line of the company. As a result, they began to focus on other divisions that could help to protect against these challenges. A good example of this can be seen with the company becoming involved in: the manufacture of golf carts (through EZGO) and in cable system installations (with Greenlee).

This is important, because it shows how Textron has been aggressively diversifying their businesses among a number of different sectors. ("Textron Businesses," 2011) At the same time, they could expand into other areas and offer products that could compete against other defense contractors. A good example of this can be seen with Textron Systems. This division works with aerial drones and unmanned combat vehicles. The creation of this unit is significant, because it shows how the company is expanding into areas that were once dominated by their competitors (such as Boeing).

("Textron Businesses," 2011) As a result, Textron has been: expanding the number of divisions and the various segments that they are focused on, to reduce the impact from commercial / military aviation. This is accomplished, by going into areas that will be in demand in the future and diversifying into other industries. ("Textron Businesses," 2011) Use the internet to find sources describing Textron's financial performance during the most recent quarter of the most recent year.

Did sales revenue and earnings increase during the time period you examined relative to the same period the prior year? What do you think influenced the financial results you found? Yes. Earnings for the company increased during the year over year time frame. What influenced the results is that some of the core businesses; that are a major contributor to Textron's earnings, began to see an improvement in sales. A good example of this can be seen with Cessna, as this accounted for 38% of the company's revenues in 2007.

Once the financial crisis began, is when earnings for the division declined sharply. Recently, Textron is reporting that sales at Cessna have improved enough, that it will be able to deliver positive results for 2011. This is because Textron was seeing substantial improvements in their core divisions to include: a 12% increase for Cessna, a 21% improvement at Bell and a 14% increase in the manufacturing division. As a result, the total revenues that they were making in 2010 increased by: $341 million to $3.1 billion.

This is important, because it shows how economic conditions, would have an impact upon the operating results for Textron. The reason.