Lockheed Aircraft Corporation case studies.
Link, Kent "A".
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Lockheed Aircraft Corporation was a financially sound organization during the mid 1960s with a reputation as a leader in the aerospace industry. Long term debt for the corporation amounted to only $17 million in 1966 and was supported by stockholders' equity of $318 million. Lockheed incurred substantial losses in 1969 and 1970 on four major defense contracts. The company was also have financial difficulty with their latest commercial venture. In 1971 the company claimed that it faced bankruptcy unless the government would provide loan guarantees in order to enable them to obtain additional capital. By the end of 1972, long term debt was over $760 million with stockholders' equity of $266 million. This thesis consists of case studies which trace the decline of Lockheed through 1972. Major projects which contributed to the decline, such as the C-5A, the Cheyenne helicopter and the L-1011 TriStar, are highlighted. All cases were prepared from published materials.
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