Business | Assignment 1: Strategic Management & Strategic Competiveness |

Business | Assignment 1: Strategic Management & Strategic Competiveness |

Science Applications International Corp. (SAIC) is currently one of the fastest growing companies in the Charleston, SC area for the past few years.
SAIC is a FORTUNE 500® scientific, engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The Company's approximately 41,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of approximately $10.6 billion for its fiscal year ended January 31, 2012. (SAIC, 2014)
SAIC is rank number 5 on the Top 100 government contractors list of Washington Technology; with $4.1 billion in government contracts revenue and $1.4 billion in civilian contracts revenue and approximately 41,000 employees worldwide.
SAIC is the principal defense contractor for Joint Intelligence Operations Capability-Iraq (JIOC-I), a capability that provides military forces with access to critical intelligence while it has maximum value, and visualization applications that highlight locations and possible vulnerabilities of adversaries across multiple theaters of operation. The company also has led the way in homeland security and public safety, developing the Integrated Container Inspection System (ICIS) to examine U.S. - bound cargo with significantly reduced impact on the flow of commerce. In addition, SAIC is working with the U.S. Centers for Disease Control and Prevention to improve early detection of major disease outbreaks and bioterrorism attacks.
The Industrial Organization (I/O) model basically “assumes that a firm’s strategy is a set of commitments and actions flowing from the characteristics of the industry in which the firm has decided to compete” (Hitt, Ireland & Hoskission, 2013, p. 16); while the Resource-Based model “assumes that each organization is a collection of unique resources and capabilities” (Hitt, Ireland & Hoskission, 2013, p.17).
SAIC seems to be a very good example what and how the Resource-Based model firm should operate; a prime example of how the company is currently operating can be seen by the following: on May 24, 2012, SAIC was awarded a prime contract by the Defense Intelligence Agency (DIA) to provide linguist, operational, translation and management services in support of the National Media Exploitation Center (NMEC). SAIC will provide linguistics and other translation services to the government under a five-year Defense Intelligence Agency (DIA) contract worth $33 million. The award calls for SAIC to assist the NMEC, which provides collection, processing, exploitation and dissemination for intelligence, defense, homeland security, law enforcement and other U.S. federal agencies. SAIC will provide linguist, operational, translation and management services as required, including: translating written, electronic and multi-media material into English or from English into a foreign language; editing; database administration; and operations support, including management of all contractor personnel and related functions. According to Larry Hill, SAIC senior vice president and business unit general manager has said "We are proud of our track record as one of the largest language service providers to the defense, intelligence, and law enforcement agencies, and look forward to providing the NMEC with high-level technical translations in support of the DIA" (DIA Contract para.3). Also, because of SAIC’s resources and experience in the Language Service Field, it could provide DIA and the NMEC with the services they require while at the same time adhering to every aspect of the contract by eliminating some of the cost that other companies may incur and try to pass along to the government. For example, other companies may have to hire a subcontractor to assist them with the performance of the contract. On the other hand, SAIC is one of the largest providers of language services to the intelligence, defense and law enforcement communities. With a portfolio of more than 70 languages, our linguists provide translation, interpretation and analysis services to U.S. government decision-makers at home and abroad (Language Services, 2014).
SAIC’s ability to identify and maximize its companies unique resources and strengths while at the same time competing/bidding on government contracts that will best fit the company and its objectives allows the company to absorb any of those costs that the government is not willing to pay for, all the while still making enough of a profit that the government still considers the price to be fair and reasonable. It seems to me that SAIC’s foresight pertaining to the needs of the US government and its many agencies fighting the ever-changing war on terrorism; created, developed several ideas and techniques that would cater to the needs of our country and other countries around the world all together. I guest these characteristic traits are among the reasons the company is able to attract both government and commercial service contracts and other contracts.
It seems to me that SAIC is currently operating, and profiting more so with the Resource-Based model than on the I/O model; it is clear that they rely heavily on their own resources instead of outside organization’s resources.
Founded by J. Robert Beyster, Ph.D., and a small group of scientists in 1969, SAIC has played a key role in helping the armed forces and various intelligence agencies respond quickly to emerging threats and prepare for future challenges. Today, SAIC’s work ranges from battlefield biometrics to cutting-edge sensing devices to electronically linking together all of our forces for tomorrow’s possible conflicts. SAIC’s mission statements claims
SAIC is a company of people dedicated to delivering best-value services and solutions based on innovative applications of science and technology. We commit to exceeding our customers' expectations for quality, responsiveness, and professional excellence while delivering within the agreed price and schedule. We maintain the highest standards of ethical behavior and professional integrity. We employ people of exceptional creativity, expertise, and determination who work closely with one another and with our customers. We pursue technical growth and market diversification to increase value for our customers and opportunity for our employees. We foster a working environment that encourages technical objectivity, professional and financial growth, and entrepreneurial freedom (About SAIC 2012).
In my opinion and going back throughout the history of this organization, SAIC’s growth, diversity of employees, and continued success has a direct correlation to its mission statement. Not only is SAIC a major player in the government contracting arena, this firm also play a vital role in the commercial sector as well; combing with other companies, numerous government agencies, both foreign and domestic.
Despite its ranking in the top 100 Government Contractors, SAIC appears to be continuing on that path that was set forth by the original founder of the company and improving on it by making and continuing a strong active commitment to supporting programs of national importance, all the while providing as much assistance as possible to help solve or undertake our country’s most significant problems.
In all publicly traded companies there are stakeholders; those “individuals, groups, and organizations that can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance” (Hitt, Ireland & Hoskission, 2013, p.19). In my opinion each category of SAIC’s stakeholders, the Capital Market, Product Market and the Organizational stakeholders all seem to play a very vital role in the past present and future success of the firm. This is clearly reflected in the continued rewarding of both commercial and government contracts; the capital market stakeholders have willingly invested in the company’s ability to produce high returns from the high-risk investments that they continue to invest in. The product market stakeholders in the case of SAIC consist mainly of customers, suppliers, and host communities; the company’s biggest customer is the United States government and the fact that this companies rating among government contractors speaks volumes. It says to me that the government is willing to invest the public’s money on this firm and the products it is capable of producing at a fair and reasonable price. In my opinion, the host community of metro Charleston has a very satisfied and impressed attitude towards this firm that has recently completed another building here. The community also benefits from the number of job possibilities that continue to accumulate here also; the firm is active in a number of charities along with the military bases here as well. I would think that the last of the stakeholders of the company, the employees are just more satisfied, if not more than some others for a couple of obvious reasons. First the sheer number of jobs that the firm has brought to the economy, and secondly, the compensation that the employees enjoy are among the industries best. I’m sure the other benefits that the employees enjoy help to keep the morale, and pride levels high for this company. The new, stimulating, and technologically advanced working environments all play a role in the company maintaining consistency and productivity of its employees.
In my opinion the numbers and continued growth of this companies depicts the stakeholder’s dedication to their company; I don’t know of many people who would continue to invest funds, resources, time and hard work into a company that is not producing high returns. This tells me that strategically this organization has a good foundation set, which could only lead continued and future success.

References:
SAIC website, visited on 7th April 2014. Retrieved from: http://www.saic.com/about/
Hitt, Michael A., Ireland, R. D., & Hoskisson, Robert E. (2013), Strategic Management-
Concepts and Cases, Competitiveness and Globalization, Mason, OH: Cengage Learning.
Noland, Katelyn, (2012), “SAIC To Translate Languages for DIA Media Center”. Retrieved
From: http://www.govconwire.com/2012/05/saic-to-translate- languages-for-dia-media center/ SAIC, (2014), “SAIC: National Security: Intelligence Solutions: Language Services”. Retrieved
From: https://www.saic.com/natsec/language-services.html