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unscathed, it s almost certain that the software giant will quickly revitalize its acquisitions strategy And, by making more than US$38 billion available in cash reserves in early 2002, Microsoft is clearly repositioning to start shopping again to stay on top of the curve Aerospace and defense industry The aerospace and defense industries wage war through the Balance and Alliance Stage, with countries vying against companies When Europe blocked the GE-Honeywell merger, it sent a clear message that the industry s consolidation had gone far enough, at least in the minds of European regulators What was once a raft of companies in Europe and the United States has diminished to a handful of large contractors.

In fact, Ford has created a new venture called FordDirect to address some of its other business areas, such as selling, as opposed to manufacturing, cars This is the direction of the critical thinking required to determine a corporation s core competency A discussion of customer perceptions may be beneficial and prudent in order to define the corporate core competency because the corporate value proposition should be built on this definition And the value proposition is what the customer is interested in The customer wants to know: What value-added capability will an XML strategy provide Who can best support or supply these capabilities to help me be more profitable After these questions are answered, a company is ready to explore the building blocks for justifying and creating an XML implementation strategy..

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1. a. The main reason coal provides a much better fuel source than other fossil fuels like oil and gas is because there is so much more of it. Global coal deposits are about 10 times greater than conventional oil and gas resources added together. Further, because it has been mapped and found economically recoverable, it is a proven resource. Though also a limited resource, it is extremely abundant. Coal production for electricity can be extremely harmful to both the environment and public health. The process, from mining to waste disposal, creates both public and environmental risks. Because of hazardous substances contained within it (like mercury, sulfur dioxide, nitrogen oxides, and particulates), when coal is burned, it contaminates the air, land, and water.

Will large defense contractors continue to choose sides and partner against comparable combinations A logical evolution of the Balance and Alliance Stage is just that surviving participants in a market will choose partners, just like teams pick players in a sandlot ball game Will the odd player out be out of the business Will regulators allow via alliance what they frowned upon with GE-Honeywell Only time will tell As aircraft and weapons systems grow in terms of complexity, cost, and development time, such alliances are inevitable Start-ups or small players have little or no chance in this industry But this doesn t mean the outcome is predictable Sometimes a wild card new, agile entrants or an external event can precipitate consolidation.

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Of course, this is hard. Once either party knows, they may not be willing to move forward. However, it s better they nd out beforehand, rather than afterward.

With the sudden turn of events post-September 11, 2001, for example, weapons procurement spending in the United States will vault from US$60 billion to US$90 billion annually for the next five years, precipitating a rush to further consolidate an industry already in the Focus Stage Northrop Grumman s acquisitions of Litton Industries and Newport News Shipbuilding pushed it to the top of the shipbuilding industry and made it the world s third-largest defense contractor With sales approaching US$14 billion, Northrop is targeting engineering company TRW to pick up another US$7 billion in defense spending after selling off the target company s auto unit, which has larger sales and lower profits If the Northrop takeover is successful, it would be a match for Lockheed Martin, with US$24 billion in revenue..

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