This presentation a part of Deloitte Maverick : case-study analysis competition, 2014.

1. Submitted By,
Team SIBM-B Stalwarts, SIBM Bangalore
Member Name Email ID Contact No.
Kashyap Shah kashyap.shah16@sibm.edu.in 8884822208
Akash Dhar Akash.dhar16@sibm.edu.in 9916800018
Vrinda Jain Vrinda.jain16@sibm.edu.in 9886800063

2. Financial Assessment Competitive
Position
Opportunities Areas to grow SWOT
Analysis
1) More than 11 % cut in Annual defence budget of
US over the period of 4 years due to reduced arm
conflict in Iraq and Afghanistan.
2) long term debt is increasing over the year’s
period but company’s total assets minus total
liabilities (Shareholder’s Equity) remains same in
2014-2015.
3) High Account Receivables Turnover Ratio (A/R)
suggests that company’s extension of credit and
collection of debt is efficient.
3
2
1

3. Financial Assessment Competitive
Position
Opportunities Areas to grow SWOT
Analysis
73%
16%
3% 2% 4% 2%
2014 Avg Profit / Unit or Service
Military Flight Simulator
MRO IT system
Military Flight Simulation
Instruction
Military Flight Simulator
Services / Maintenance
MRO IT System Services
Military Facility
Construction
74%
14%
3%
2% 4% 3%
2019 Avg Profit / Unit or Service
Military Flight Simulator
MRO IT system
Military Flight Simulation
Instruction
Military Flight Simulator
Services / Maintenance
MRO IT System Services
Military Facility
Construction
Particulars Amt (in $) Particulars Amt (in $)
Military 9000000
Flight Simulator
MRO 3000000
IT System
Military 600000
Flight Simulation
Instruction
Military 1000000
Flight Simulation
Services
MRO IT
System 1000000
Services
Military
Facility 600000
Construction
Sales Revenue 26750000
Total Avg.
COGS 14200000
Total Avg.
Profit 12550000
Income Statement
OR
P/L Account
for year 2014

4. Financial Assessment Competitive
Position
Opportunities Areas to grow SWOT
Analysis
 MRO IT System has longer lifespan of 20 years and Global rise is expected in this market. Milco
should not only try to increase its current US market share in MRO IT and services , but also
look towards new markets such as emerging economies for its most profitable products
Military Flight Simulators and MRO IT System.

5. Financial Assessment Competitive
Position
Opportunities Areas to grow SWOT
Analysis
 Defence spending is increasing in some areas of globe like : India, China, The Middle East,
South Korea, Brazil, Russia and Japan.
 India, where FDI in Defence sector limit has been increased from earlier 26% to 49% now;
it may become a crucial market for A&D companies.

6. Financial Assessment Competitive
Position
Opportunities Areas to grow SWOT
Analysis
 Over the next decade by 2023, commercial aircraft annual production levels are
anticipated to increase significantly by an estimated 25 %.
 Accelerated replacement cycle of obsolete aircraft with next generation fuel-
efficient aircraft, and continued increase in passenger travel demand will lead to
projected increase in commercial aerospace.
By 2022, Global Military IT,
Data and Systems security
market ( Cyber Security ) is
expected to rise by 38.5%
( in US $ Billion revenue ).

7. Financial Assessment Competitive
Position
Opportunities Areas to grow SWOT
Analysis
 3 key things for Milco to consider: Maintaining Cost efficiency, Constant innovation / R&D
in products making processes and looking for Emerging markets where they can cater the
need.

8. Financial Assessment Competitive
Position
Opportunities Areas to grow SWOT
Analysis
Strength
Financial Stability of Milco
Strong Revenues
Expertise in making simulator products and MRO IT systems
Maintenance / Service offerings
Weakness
Main focus in only Military market
Lack of vision to expand the portfolio
Lose of market share due to increased competition in US
market
Higher production costs
Opportunities
Growing international demand for
electronics systems in defence
Newer markets such as Emerging economies
Growing MRO IT ,Cyber security and commercial aerospace
markets
Threats
Increasing competition in A&D market
Growing trend of cut backs in defence budget among
developed countries
SWOT

9. Bibliography :
• 8/7/2014 2013 Defence News Top 100 Aerospace & Defence Companies
http://defensecontractormarketing.com/2013-defense-news-top-100/ 6/17
• www.deloitte.com/us/2014ADoutlook
• http://www.bga-aeroweb.com/Aerospace-Defense-Companies.html
• 2012 KPMG Aerospace & Defence Industry Outlook Survey
• www.capgemini.com/aerospace-defense
• Mckinsey quarterly,2008
• http://deloitte.wsj.com/cfo/2012/12/10/for-aerospace-and-defense-cfos-seeking-growth-look-to-emerging-
markets/
• Aerospace-defence outlook- KPMG 2013
• http://www.strategyand.pwc.com/global/home/what_we_do/industries/aerospace_defense/ad_key_trends
• http://www.deloitte.com/view/en_US/us/Industries/Aerospace-Defense-Manufacturing/
• http://www.telegraph.co.uk/finance/newsbysector/industry/defence/10957021/Two-thirds-of-UK-defence-
companies-look-to-emerging-markets-for-significant-growth.html
• http://www.businessinsider.com/top-25-us-defense-companies-2012-2?IR=T#1-lockheed-martin-25
• http://www.thehindubusinessline.com/economy/india-poised-to-be-hot-destination-for-global-defence-cos-
deloitte-study/article4312904.ece
• http://articles.economictimes.indiatimes.com/2014-08-07/news/52555932_1_defence-sector-cent-fdi-railways-
sector