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H&K International Business Research Paper

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Heckler & Koch GmbH

Table of Contents Introduction 3 Early History 4 Firearms History 4 U.S. Bound 6 Other Countries 8 Negative Image 9 SWOT Analysis 12 Conclusion 13 References 14

Introduction There are over 30 different major firearm manufacturers in the world today. This doesn’t even included small, privately owned companies within the United States and other countries. As children, we have played many different games that include some type of “firearm” whether it is our hand or a plastic toy. So it may come to some more naturally to be drawn towards firearms. Many families around the world own firearms. Even the United States Bill of Rights has a section, that “… the right of the people to keep and bear Arms, shall not be infringed” (U.S. Const. amend. II).
Early History
Interestingly enough, Heckler & Koch came about due to another firearms company, Mauser-Werke Oberndorf Waffensysteme GmbH, otherwise commonly known as Mauser. Mauser was a German arms manufacturer located in Oberndorf, Germany that was started in 1811. They manufactured weapons that would soon be used by the German Army during several wars. It wasn’t until World War II that Mauser would be out of commission as the territory the plant was located in became under control by the French military. The French dismantled the entire factory and destroyed all records. However, former Mauser engineers, Edmund Heckler, Theodor Koch and Alex Seidel, would salvage what they could from the ruins in order to try and continue building the weapons they had started. This would set in motion building blocks toward the new manufacturer named Heckler and Koch (H&K or HK). Heckler and Koch would soon become registered in December 1949 and officially opened for business in 1950 (Heckler & Koch GmbH). Heckler & Koch, while their original intent was to produce firearms, started out manufacturing parts for items such as household machines, bicycles, gauges, and other special tools. This was Heckler & Koch’s way of improving the German and European area way of life after the destruction of World War II (Heckler & Koch GmbH).
Firearms History After providing economical help, Heckler & Koch started to produce their first firearms. The very first firearm produced was the G3 Assault Rifle (AR). The G3 uses 7.62x51mm NATO ammunition. This rifle was the standard issue to all of the German forces by 1959 by the Bundeswehr of the Federal Republic of Germany (Heckler & Koch GmbH). Soon, other countries would be supplying these weapons to their military and police due to their reliability, strength, and low recoil. After many years, Heckler & Koch branched from their rifles to produce their first pistol in 1967. The HK4 would be their premier pistol. The HK4 that was mainly chambered for the .32 ACP (7.65x17mm Browning SR) ammunition. The most notable achievement of this pistol is the capability of being able to fire four different caliber ammunitions; three centerfire and one rimfire. The four different ammunitions were .25 ACP (6.35x16mmSR); .32 ACP (7.65x17mm Browning SR); .380 ACP (9x17mm Short); and .22 Long Rifle (.22LR). In order to be able to fire the different ammunition, all that was needed was to change out the barrel and magazine (Bardwell, 2011). With time and progression, Heckler & Koch began producing many different variations and new weapons. Two of the most popular firearms they produced in the mid-1960s were the MP5 and the P9S. The MP5 is categorized as a sub-machine gun that utilizes 9x19mm NATO ammunition and had become the world’s most popular one that is still sold even today. There are many variations and hundreds of accessories for the MP5 such as suppressors, extendable and retractable buttstocks, barrels of different length, and various sighting options. This sub-machine gun has become very popular with Military Special Forces and SWAT police teams for close-quarters combat situations. A follow up weapon that would be a “big-brother” to the MP5 was the UMP sub-machine gun that was chambered for 9x19mm Parabellum (Luger) ammunition, .40 S&W ammunition, and .45 ACP ammunition (Heckler & Koch GmbH). The P9S pistol was considered a marking achievement due to the use of the roller locking system that was very popular with the G3 and the use of a newly developed high-tech plastic composite called polymer, which molded around the steel frame. This lead to a lighter and more accurate pistol that were embraced by several elite military units, including the US Navy SEALS (HKPRO.com; Heckler & Koch GmbH).
U.S. Bound Heckler & Koch would make its way into the United States in 1976 by basing a U.S. Headquarters in Virginia. This would help to serve the needs of the United States customer markets; military, law enforcement, and civilian. In 1990, Heckler & Koch would make two pistols that were designed with the United States markets in mind. The Universal Self-Loading Pistol (USP) was designed for the American shooter and would be chambered in three different calibers; the USP40 was designed for the .40 S&W ammunition, the USP9 was designed for the 9x19mm Parabellum (Luger) ammunition, and the USP45 was designed for the .45 ACP ammunition. The Mark 23 pistol was designed for the U.S. Special Operations Command (SOCOM). This pistol was specifically designed for the .45 ACP ammunition and incorporated a barrel that was threaded at the end to accommodate a suppressor. The Mark 23 would be the first pistol in .45 ACP to enter United States military service since the Government Model 1911A1 and would help any special force units that would need to operate in stealth (Heckler & Koch GmbH). The United States would see even more of Heckler & Koch with more firearms as time progressed. This is probably due to the many wars and conflicts that the United States has been involved in while needed weaponry for protection. As both the United States Army and United States Marine Corps are the main forces that see combat in today’s age, they have been looking for a replacement firearm for the age-old M16 rifle and M249 Squad Automatic Weapon (SAW). Heckler & Koch have developed various models for the United States military to look at, field test, and decide on. Some of the models that have or are being tested are the XM8, HK416, and HK417. All of these weapons have the capabilities of using the same ammunition and magazines as the current M16. The United States Army decided to forego the XM8 model, which was a big contender, for an upper receiver replacement made by Cold Defense LLC that would shorten the barrel length. This would cost the United States Army $375 million. There is still some controversy as to whether this was the right decision or to have gone with a totally new firearm (Defense Industry Daily, LLC., 2012). Heckler & Koch, along with various other firearm manufacturers such as Colt Defense LLC and FN Herstal, competed for a contract for the United States Marine Corps replacement of their M249 SAW back in 2009. The Marine Corps decided to choose Heckler & Koch as the company to provide the firearms. However, it wasn’t until 2011 that the Marine Corps made the final steps in awarding the contract to Heckler & Koch that would be worth $23.6 million. Heckler & Koch would use their HK416 model firearm to fabricate what the Marine Corps would call the M27 Infantry Assault Rifle (IAR). The HK416 would be able to use the same ammunition, magazines, and picatinny rail system accessories as the M16 and M249, thereby making an easy transition without any compromise (Lamothe, 2009; Lamothe, 2011; Heckler & Koch GmbH; Defense Industry Daily, LLC., 2012). Another weapon that the United States Army decided to accept from Heckler & Koch, after opting out of the XM8, was the XM320 40mm Grenade Launcher Module (GLM). This weapon will replace the current M203 Grenade Launcher for the M16/M4. The GLM is able to provide better safety and accuracy that the M203. The United States Army has stated they will keep the GLM, which can be fired separately from a rifle, and use them for whichever weapon will replace the M16/M4 (Kemp, 2008). While the United States military is an important customer for Heckler & Koch, they are not the only U.S. customer. In 2003, the Transportation Security Administration (TSA) came to a conclusion that they will issue .40-caliber handguns to U.S. commercial pilots if the pilots complete federal law enforcement training with the agency’s guns-in-cockpits program. A three year contract with Heckler & Koch, totaling $3.3 million, has been made for the H&K USP40. While this was an initial shock to other competing companies that were for “Buy American” ideals, Heckler & Koch stated that they would be building a factory in the state of Georgia where the pistols would continue to be built for the contract. The factory would also manufacture assault rifles, machine guns, grenade launchers, and small arms for U.S. military and police forces (Sia, 2003).
Other Countries To go back in time a bit, early 1990s, will take us to another very popular weapon with many other countries that Heckler & Koch has manufactured in order to replace the G3. This firearm is the H&K G36 assault rifle that fires 5.56x45mm NATO (.223 Remington) ammunition. The G36 is a lightweight weapon that delivers high performance and requires very little maintenance. The German, Spanish, and Greek Armed Forces, as wells as over 30 other allied nations, have tested and now field the G36 as their primary weapons. Other international law enforcement agencies utilize this weapon as do some United States forces. German Soldiers fought in Kosovo for first time since WWII with H&K G36. Many components can be utilized on the G36 as compared to the MK416 due to the Picatinny style rail system (Heckler & Koch GmbH). Heckler & Koch has developed another firearm, the MP7A1 sub-machine gun. This was designed for NATO forces in response to the terrorist and criminal gangs, such as the former Soviet Bloc special forces, now the standard NATO test target (CRISAT). This is a fairly new firearm that is a compromise in the sub-machine gun size yet delivers high-powered rifle qualities due to the ammunition that Heckler & Koch developed, a 4.6x30mm round. The round is able to give up to a 50% reduced recoil, when compared to a 9mm NATO round, that helps to provide more accurate shots. The ammunition also has armor piercing capabilities at approximately 200 meters or more that help to combat CRISAT body armor. This weapon has been especially designed to help security forces protect international VIP s (Heckler & Koch GmbH). Not only has Heckler & Koch made firearms, but they are now even producing lines of knives, safes, clothing, and handgun & rifle parts. The knives are a combination of Benchmade blades, materials, and mechanical technology to incorporate H&K polymer materials. These tactical knives incorporate designs based on H&K firearms (Williams, 2005; Benchmade Knife Company, 2012).
Negative Image Heckler & Koch have not always been in the spotlight with good impressions. There have been many allegations about Heckler & Koch in regards to their weapons and ammunition being sold to buyers located in areas that are having human rights violations. Other allegations are that Heckler & Koch are selling weapons and ammunition to terrorists. In 2011, the headquarters of Heckler & Koch was raided in late February by approximately 20 German Police Officers after there were allegations that H&K was bribing Mexican officials in order to boost their sales with deliveries of G36 rifles from 2005-2010. There were also allegations that some German officials were bribed to help sale weapons to Mexican states that have been in drug wars. These four key Mexican states are Chiapas, Chihuahua, Guerrero, and Jalisco. This investigation was brought about by an anti-weapons activist named Juergen Graesslin and a written testimony of an anonymous H&K whistleblower. Hearing this news brought the German officials to a conclusion that something needed to be done. Therefore, an investigation was launched to find out if in fact Heckler & Koch was selling weapons in restricted areas. A continuation of the investigation on Heckler & Koch resulted in another raid on their headquarters; this time with approximately 300 German Police Officers. Several German officials had their apartments searched as well. While firearms sales outside the four Mexican states are allowed, however within them are against Germany’s weapons export regulations (Deutsche Welle, 2011; Baetz, 2011; Heckler & Koch GmbH). Shortly after the first raid on Heckler & Koch’s headquarters, a video emerged on YouTube showing Libyan leader Moammar Gadhafi's son Saif al-Islam addressing a crowd in Tripoli, Libya. In Saif’s hands was a rifle that was deemed to be an H&K G36. Heckler & Koch and German officials are unaware how Saif was able to get ahold of this weapon as all sales to Libya are also illegal. According to Ben Knight, a writer for Deutsche Welle, informs that while Gadhafi was not able to purchase Heckler & Koch weapons, he was able to purchase other German weapons from Daimler and EADS. Knight tried to get in contact with other German weapons manufacturers in regards to selling weapons to both sides of the war in Libya without any success. There was an exception with Heckler & Koch. H&K states to Knight, “A national defense industry ensures control, the independence of political decisions, and underlines the sovereignty of the state. For example, for the fighting troops in Afghanistan it is vitally important that their demand for high-quality and reliable manufacturers is covered. Every weapons export goes through a very tight vetting and authorization process, which is tied to a political evaluation of the reliability of the destination country," it went on. "The German weapons export law is among the strictest in the world,” (Deutsche Welle, 2011). In August 2011, Gadhafi’s residence in Tripoli, Libya was stormed by rebels. When they searched the residence, a large amount of assault rifles were found that happened to be Heckler & Koch G36s. This brought more speculation upon H&K as to whether they were illegally selling weapons to areas that not allowed by German laws. Heckler & Koch deny any supplying of weapons to Libya and that the German government has no knowledge of any weapons being shipped to Libya (Deutsche Welle, 2011). An activist group, Shut Down H&K, out of the United Kingdom is dedicated to trying to get Heckler & Koch shut down, hence the organizations name. Their website states, “The campaign’s aims are threefold: To raise awareness of the presence of a major arms company in Nottingham. To investigate and expose the company’s unethical business dealings and the tragic consequences. To stop the company from using Nottingham and the UK as a base for its arms deals.” The organization updates its website with news that targets Heckler & Koch and times that the organization schedules campaign picketers (Shut Down H&K). In 2004, Colt Defense had sued both Heckler & Koch and Bushmaster Firearms for patent and trademark infringement, false advertising, unfair competition and deceptive trade practices. Heckler & Koch decided to change the name of their firearm from the HK M4 to HK416 in order to forego going to court while Bushmaster Firearms went to court and won. While this was not big hit on Heckler & Koch, it still could have put a negative image towards them (Christopher, n.d).
SWOT Analysis
Strengths:
Heckler & Koch has been a successful company with many ups and downs. There are several strengths that the company has. Heckler & Koch has been around for over 60 years with history ranging back to 1811. This shows that the company has been, is, and will be around for many more years to come. This will inevitably draw customers. Heckler & Koch is one of the top firearms manufacturers in the world that produces top quality products and is often sought out by military, law enforcement, and civilians alike.
Weaknesses:
The same quality that draws military, law enforcement, and civilians is also a weakness for the company as terrorists, drug cartels, and gangs seek to get their hands on these same weapons that are supposed to help protect and enforce. Heckler & Koch also have a negative image to contend with due to the weapons that have found their way into the wrong hands.
Opportunities:
Some of the opportunities that Heckler & Koch have are that they have the capabilities to expand in the market with newer model firearms. This is evident by their contract with the United States Marine Corps. Militaries are always seeking newer and better options to their current weapons. With H&K having weapons that have been around for a long time results in dependability weapons that get updated tweaks as time progress and newer advances are made.
Threats:
One of the threats facing Heckler & Koch is their competition. As there are many different weapon manufacturers in the world, some of the main competitors are Bushmaster, Colt, Glock, Ruger, Sig Saur, and Smith & Wesson. All of these companies make variations of the same similar models and therefore H&K needs to “keep on top of their game” by bringing advancements that will hopefully draw in more customers than others. Another threat noticed is that due to Heckler & Koch’s quality products, they tend to be on the higher price range which could lead to fewer customers. In my research of Ruger and then Heckler & Koch, I found that the average price range for pistols for H&K ranged from $1,000 – $2,000 while Ruger ranged from $400 - $800. This could be at a disadvantage for H&K in the way of sales to the civilian population that may be looking for lower priced weapons (Sturm, Ruger & Co., Inc., 2012).
Conclusion
After much research, I found a larger interest in Heckler & Koch. I have fired many different weapons in my lifetime, even an H&K pistol. I’m sad to say that I have not had the opportunity to fire any of the H&K rifles or sub-machine guns, but after this research, I am determined as these firearms seem to be a top brand that everyone wants to get ahold of. While it is questionable as to whether or not Heckler & Koch are supplying weapons to human rights violation areas, it makes me wonder how a whole organization and country could be in a scandal such as this; especially when Germany has such stringent laws on weapon exportation. “Heckler & Koch is a company that adheres to the laws and regulations of the Federal Republic of Germany” (Heckler & Koch GmbH). Heckler & Koch have been around a long time and I foresee them to be around even longer.

References
Baetz, J. (2011, Nov 10). Prosecutors raid Heckler & Koch's headquarters. Associated Press. Retrieved from http://news.yahoo.com/prosecutors-raid-heckler-kochs-headquarters-112109194.html
Bardwell, J. (2011). HK 4. Retrieved from http://hkp7.com/hk4/bardwell.htm
Benchmade Knife Company. (2012). Heckler & Koch Knives. Retrieved from http://www.benchmade.com/products/product_list.aspx?category=27
Christopher, S. (n.d). Firearms Lawsuit Is in Norfolk, Va.'s Court. Daily Press (Newport News, VA),
Defense Industry Daily, LLC. (2012, Apr 29). The USA’s M4 Carbine Controversy. Retrieved from http://www.defenseindustrydaily.com/the-usas-m4-carbine-controversy-03289/
Deutsche Welle. (2011, Apr 21). Arms exports show apparent hypocrisy of German foreign policy. Retrieved from http://www.dw.de/arms-exports-show-apparent-hypocrisy-of-german-foreign-policy/a-15014836-1
Deutsche Welle. (2011, Jan 3). Investigation closes in on German weapons company. Retrieved from http://www.dw.de/investigation-closes-in-on-german-weapons-company/a-14742625-1
Heckler & Koch GmbH. (2008). Military & Law Enforcement Catalog. Retrieved from http://photos.imageevent.com/smglee/cltactical/HK%20Military%20LE%20Catalog.pdf
Heckler & Koch GmbH. (2011, Aug 31). Statement by Heckler & Koch regarding speculations on arms deliveries to Libya. Retrieved from http://www.heckler-koch.com/en/military/company/news/detail/article/statement-by-heckler-koch-regarding-speculations-on-arms-deliveries-to-libya.html
Heckler & Koch GmbH. (2011, Feb 28). Statement on the allegation of illicit weapon deliveries to Mexico. Retrieved from http://www.heckler-koch.com/en/military/company/news/detail/article/statement-on-the-allegation-of-illicit-weapon-deliveries-to-mexico.html
Heckler & Koch GmbH. CIVILIAN PRODUCTS: Semi-Automatic Pistols. Retrieved from http://www.hk-usa.com/civilian_products/pistols.asp
Heckler & Koch GmbH. Heckler & Koch: A Company History. Retrieved from http://hkus.nutech.com/index.jsp?loc=21&REFID=a0000&SITEID=A
Heckler & Koch GmbH. MILITARY & LAW ENFORCEMENT PRODUCTS: Semi-Automatic Pistols: Mark 23. Retrieved from http://www.hk-usa.com/military_products/mark23_general.asp
Heckler & Koch GmbH. MILITARY & LAW ENFORCEMENT PRODUCTS: Submachine Guns & PDWs: MP5. Retrieved from http://www.hk-usa.com/military_products/mp5_general.asp
Heckler & Koch GmbH. MILITARY & LAW ENFORCEMENT PRODUCTS: Submachine Guns & PDWs: MP7A1
Heckler & Koch GmbH. MP5: The most popular submachine gun. Retrieved from http://www.heckler-koch.com/en/military/products/submachine-guns/mp5/mp5/overview.html
HKPRO.com. P9. Retrieved from http://www.hkpro.com/index.php?option=com_content&view=article&id=60:p9&catid=6:the-pistols&Itemid=5
Kemp, I. (2008). The Infantry's 40 mm Punch. Armada International, 32(5), 34-38.
Lamothe, D. (2009, Dec 2). Corps chooses H&K to make SAW replacement. Marine Corps Times. Retrieved from http://www.marinecorpstimes.com/news/2009/12/marine_IAR_120209w/
Lamothe, D. (2011, Oct 31). Corps awards $23.6 million IAR contract. Marine Corps Times. Retrieved from http://www.marinecorpstimes.com/news/2011/10/marine-iar-contract-awarded-103111w/
Shut Down H&K. Why the campaign? Retrieved from http://www.shutdownhk.org.uk/
Sia, R. P. (2003, July 30). At Chairman's Urging, TSA Revisits German Gun Contract. CongressDaily AM. p. 7.
Sia, R. P. (2003, October 22). TSA Reaffirms Decision On German Firearm Supplier. CongressDaily. pp. 13-14.
Sturm, Ruger & Co., Inc. (2012). Centerfire Pistols. Retrieved from http://www.ruger.com/index.html
U.S. Const. amend. II
Williams, R. H. (2005, March). Firearms Maker Unveils Line of Tactical Knives. National Defense, 89(616). 40.

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...TMKT402 International Marketing Management Unit Outline – 2014 (Semester 1) Unit Coordinator: Dr. Nigel Hardiman Introduction Welcome to TOP Education and TMKT402 International Marketing Management. This document provides you with information relevant to successful completion of this unit; including the schedule of lecture topics, prescribed texts, assessment policies, assessment tasks, examinations, academic and administrative contacts and online learning support facilities. Student Handbook and Administration Office The TOP Student Handbook provides valuable general information for students and a printed copy will be provided to you. In addition, TOP staff are available to assist you personally during office hours. Office Contact Details: TOP Education Institute Suite 1, Biomedical Building, 1 Central Ave Australian Technology Park Eveleigh NSW 2015 Tel: 02 9209 4888 Unit Overview This unit deals with key international marketing concepts, analytical methods and decision tools necessary for understanding the dynamic nature of international marketing situations facing different organisations, and to make international marketing decisions to deal with such international marketing situations. Its objective is to enable students to acquire relevant knowledge and techniques to deal with the various international marketing challenges, and to develop meaningful solutions to overcome such challenges. The unit offers...

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...[pic] Ecole Superieures Libre des Sciences Commerciales Appliquees Doctorate of Business Administration Human Capital Management Paper on Dynamic Capabilities of Firms Presented to: Dr. Sherif Delawar By Mohamed Antably March 2012 Cairo, Egypt. Abstract: From one hand the dynamic capabilities of firms are the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. Other hand, Human capital ultimate objectives are linking HR practices and knowledge with goals of the firm to achieve and develop Competitive advantages. Accordingly, linking both statements would generate that HC is not only working to achieve the organizations objectives and but also to formalize, maintain and develop the firm dynamic capabilities. HC should also work on sharing and collecting success stories, lessons learnt and implicit individuals' knowledge into institutional explicit knowledge. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining which is more difficult among horizontal levels but easy in the vertical levels applying the chain of command), shaped by the firm's asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is ampled...

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...Etemad, H. and Wright, R.W. (2003), “Internationalization of SMEs: Toward a New Paradigm”, Small Business Economics, 20, 1-4. Ibeh, K.I.N. (2003), ‘Toward a Contingency Framework of Export Entrepreneurship: Conceptualisations and Empirical Evidence’, Small Business Economics, 15 (1), 49-68. Prashantham, S. and Floyd, S.W. (2012), “Routine Microprocesses and Capability Learning in International New Ventures”, Journal of International Business Studies, 43: 544–562.| Reuber, A.R. and Fischer, E. (1997), “The Influence of the Management Team’s International Experience on the Internationalization Behaviors of SMEs”, Journal of International Business Studies, 28 (4), 807-825. Sen, Arup; Haq, Kushnood. Internationalization of SMEs: Opportunities And Limitations In The Age Of Globalization, The International Business & Economics Research Journal9. 5 (May 2010): 135-142. Smolarski, Jan; Kut, Can., The impact of venture capital financing method on SME performance and internationalization, International Entrepreneurship and Management Journal7. 1 (Mar 2011): 39-55. falseZhu, hong; hitt, michael a; tihanyi, laszlo. The internationalization of smes in emerging economies: institutional embeddedness and absorptive capacities, journal of small business strategy17. 2 (fall 2006/winter 2007): 1-26. 2. SMEs internationalisation and Networks Chetty, S.K. and Holm, D.B. (2000), “Internationalisation of Small to Medium-Sized Manufacturing Firms: A Network Approach”, International Business Review...

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