Determine Strategic Options to Drive International Growth with a Focus on the Asia Pacific

Raytheon Missile Systems, a major American contractor with diversified manufacturing in weapons, electronics and training services for various military and commercial applications, has been seeking key levers to grow annual international sales from 26% to 30%, with an emphasis in the Asia-Pacific Region.

The Capstone team identified Japan and South Korea as the two countries with the most potential for Raytheon to grow their international business. With recent events involving China, Russia and ISIL, Shinzo Abe, prime minister of Japan, is pushing for Japan to build up its defense capability to better stand with the United States and NATO, and additionally plans to amend the Constitution to give Japan larger military presence. With respect to South Korea, it faces constant threats from North Korea, and therefore presents a chance for Raytheon to conduct an M&A of various companies to increase its presence and market share.