Coping With Planning Problems in Defense Industry Business

by Yu Chang



The U.S. defense industry is confronted with serious planning problems. This condition, largely attributed to the nature of the defense market, challenges the management of defense firms. Executives of these firms, even the most experienced ones, have encountered both rapid growth and sudden decline in business and have found the maintenance of steady growth most difficult and baffling. This paper points out factors peculiar to the defense market that give rise to the fluctuating character of the industry. It attempts to survey problems of planning and developing new business in a firm experienced in defense business, one which has demonstrated success in obtaining a good share of its respective market segment. This paper suggests that planning and developing new business, plus the management of current business, is the dual responsibility of all defense executives and should be carried out concurrently. It further proposes a solution centered around an integrated organizational approach and advocates a systematic development of defense business. The defense market is extremely complex and ever changing. It is complex because defense spending is basically affected by national security, with attendant military, political, and economic problems.

California Management Review

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