Threats, Measures by ManTech International to Mitigate Sequestration on Business

 Running Head: SEQUESTRATION 1
Threats, Measures by ManTech International to Mitigate Sequestration on Business
Performance
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SEQUESTRATION 2
Table of Contents
Executive Summary........................................................................................................................ 3
General Background.................................................................................................................... 3
Core Products and Services......................................................................................................... 4
Mission and Vision...................................................................................................................... 4
General Problem.......................................................................................................................... 4
Specific Problem ......................................................................................................................... 5
SWOT Analysis........................................................................................................................... 5
Strengths.................................................................................................................................. 5
Weakness................................................................................................................................. 6
Opportunities........................................................................................................................... 6
Threats..................................................................................................................................... 7
Alternative Approaches............................................................................................................... 8
Diversification of products and services ................................................................................. 8
Venturing into new markets .................................................................................................... 9
New product development....................................................................................................... 9
Enhancing contract performance ........................................................................................... 10
Communication ......................................................................................................................... 10
Conclusion................................................................................................................................. 10
References..................................................................................................................................... 12
SEQUESTRATION 3
Executive Summary
Robust growth in business performance that has been witnessed in ManTech
International over the last few years is likely to affect by automatic budget cuts, normally
referred to as sequestration. Sequestration is expected to adversely affect defense programs as the
federal government cuts on domestic and national defense spending programs to reduce budget
deficit. This will have an automatic negative effect on defense contractors who the federal
government is their major client. ManTech International is one such company that mainly
provides security and defense related services to the government. Due to the expected drop in
business, there is need for ManTech International to look into ways of insulating themselves in
the future from defense budget cuts. Diversification of business and markets offers this
opportunity. It will help the defense contractor offer other service either related or non-related to
the core business to other markets hence shifting their revenue reliance from provision of defense
services to the U.S government. This will aid ManTech International post favorable financial
performance even in times of defense budget cuts or other unfavorable industry environmental
dynamics.
General Background
ManTech International is a public company listed at the NASDAQ stock exchange, with
a market capitalization of over $3 billion (Perspective, 2011). It has been described by analysts
as among one of the fastest growing technology companies. According to ManTech International
Corporation (2012) the company was established in 1968 with the aim of providing
technological services to the United States government. From its initial government contract of
developing combat-gaming prototypes for the U. S Navy, the company has consistently been
involved in developing innovative security based solutions for various government agencies, 
SEQUESTRATION 4
mainly government intelligence agencies like the Homeland Security, the FBI, the Department of
Defense and the military. The company offers wide range of services in computer forensics,
security system