External Analysis
In the case of external analysis I choose Heckler and Koch , a German defense manufacturing company that manufactures handguns, military rifles, submachine guns, and grenade launchers. It has subsidiaries in the UK, France, and the US
The type of industry of the firm we choose to analyze is defense manufacturing industry. It mainly focuses on manufacture of weapons and military technology and equipment. As it is a global business that manufactures weapons and military technology and equipment. The arms industry also conducts significant research and development and provides other logistics and operations support.
Industrialized countries have a domestic arms industry to supply their own military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by its citizens. Heckler and Koch is the defense manufacturing company of Germany, an industrialized and developed country in the world.
This firm face problems when it run its operation with other giant firms of foreign counties e.g. United States, Russia, UK, France and others. In its own national border there are a lot of arm manufacturers e.g. Hugo Schneider AG, Alkett, Berlin-Lübecker Maschinenfabrik, Deutsche Waffen und Munitionsfabriken, Hartmann & Weiss.
The arms trade has also been one of the sectors impacted by the credit crunch, a reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from the banks.
Major competitors in this industry are the producer of defense instruments. In most of the developed this industry is handled by the government. Heckler and Koch face severe problems when it competes with a government subsidized company.
An illegal trade in small arms is prevalent in many countries and regions affected by political instability.
There is significant