An important step in making an impact on the Indian market, Saab India Technology Center, SITC, was inaugurated on October 21, 2011. SITC is a collaboration with the Indian company Tech Mahindra, and supplies all of Saab’s Business Areas with skilled engineers. The growing interest for SITC has spread to TDH, the department for Human Machine Interface and Avionics. Possible benefits, but also challenges, of utilizing SITC have been discussed. This thesis attempts to address challenges and maximize benefits for TDH by exploring how a Swedish R&D organization in the defense industry, that has a tradition of performing most work in-house, can initiate outsourcing to a supplier in India. In order to do this, a literature study was performed. Since gaps in the literature regarding outsourcing in the defense industry were identified, a combination of a descriptive and exploratory research approach was chosen. Following the literature study, interviews were conducted to collect experience from working with external partners at TDH, experience from working with SITC, experience from other companies that have outsourced R&D to India and experience of working with Saab from SITC. Empirical data was also gathered via informal meetings and observations during the researchers’ 5 month stay at TDH in Sweden and SITC in India. The outcome of this study shows that drivers and risks for outsourcing R&D, as well as the characteristics of the outsourcer and the supplier, will influence how the strategy for initiating outsourcing should be built. TDH’s main drivers in deciding to use SITC are mainly cost reduction goals, the possibility to access the Indian defense market and the opportunity to gain knowledge from collaborating with international suppliers. The type of risk that is most urgent for TDH is operational risk. Risks in this category, like overestimating cost reduction and risks associated with not understanding cultural differences are all highly relevant for any organization with limited experience in outsourcing. Strategy wise, the main finding is that an R&D organization in the defense industry will benefit from working in a more collaborative manner than traditional outsourcing entails. In an R&D organization, tasks are often complex and highly integrated with each other which, combined with a limited level of outsourcing experience, requires a tighter collaboration. With a high level of involvement from the outsourcer, problems can be detected early and insufficient requirements can be handled. Close collaboration also enhances knowledge sharing, which is important to ensure that the goal of gaining knowledge from international collaboration is achieved. Furthermore, organizational acceptance can be improved by a collaboration that enables close contact between outsourcer and supplier. Improving acceptance in the organization for collaborating with the supplier should be prioritized in order to strengthen the positive effects of outsourcing.

Approved for public release; distribution is unlimited. / MBA Professional Report / The purpose of this paper is to examine and analyze whether or not there was a statistically significant reaction in financial markets to the announcements of U.S. defense contractor consolidations (mergers and acquisitions) from January 1990 to December 2006. This analysis is accomplished through the use of two series of event studies, employing first the arithmetic and then the logarithmic returns against the S&P 500 index, involving the top five defense contractors: Boeing, Lockheed Martin, General Dynamics, Raytheon and Northrop Grumman. Many studies have been conducted using the event study methodology, and the results have shown in some cases that stock prices do respond to new information. The assumpton has been maintained that the market responds rationally to such announcements. In contrast, the announcements of the acquisition of publicly traded firms by other publicly traded firms have not always had a consistently significant beneficial effect on the shareholder wealth of the acquiring firms (Schipper & Thompson, 1983). Results of this case study further support the latter assertion, and add to the body of research involving event studies.

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Após um período de estagnação no debate brasileiro acerca da construção/reconstrução de uma Indústria de Defesa (ID) no Brasil, ocorreu em meados da década de 2000 um ressurgimento do mesmo. Sabendo-se da importância deste tema, dado seu impacto no planejamento nacional, tanto em termos de defesa quanto de desenvolvimento de forma genérica; o objetivo deste trabalho é contribuir com o debate sobre a preparação logística brasileira através da aproximação das discussões sobre ID e Processos de Aquisição centrados em preocupações securitárias. A união destes dois temas justifica-se na medida em que ambos constituem duas facetas da logística (mesmo que não as únicas) e em que a própria análise da Estratégia Nacional de Defesa (END) possibilita tratar dos destes componentes de forma paralela e complementar. Ao mesmo tempo em que demonstra a intenção governamental em se modernizar as forças armadas brasileiras - o que pressupõe processos de obtenção -, sinaliza também a intenção de adquirir os materiais e sistemas necessários para tanto através de empresas nacionais – ID -, mesmo que envolvidas em parcerias com contrapartes internacionais. Após breve contextualização da situação do debate corrente no Brasil, apresenta-se o embate entre a perspectiva da “Aquisição” em oposição a da “Compra”, passíveis de aplicação em processos de obtenção de defesa. Feito isso, dois modelos de ID voltados para países em desenvolvimento são apresentados e são utilizados como base para a inserção de demais autores de interesse. Conclui- se que realizar uma aquisição de defesa em um país em desenvolvimento é, além de levar em conta as etapas analisadas no custo de ciclo de vida, realizá-la de forma inserida nas conclusões obtidas através da análise dos modelos de indústria de defesa para países em desenvolvimento propostos por Hoyt (1997) e Maldifassi e Abetti (1994) , uma vez que tais processos compõe a estratégia adotada para a operacionalização da logística e do desenvolvimento nacional. / After a period of stagnation in the Brazilian debate about the construction/reconstruction of a Defence Industry (DI) in Brazil , the mid -2000s witnessed its return. Aware of the importance of such issue due to its impact on national planning , both in terms of defense and of development in broader terms, the goal of this effort is to contribute to the debate on the Brazilian’s logistics preparation by bringing together the discussions on DI and on Acquisition Processes based upon security concerns. The union of these two subjects is justified since both are facets of Logistics (though not the only ones) and since the very analysis of the National Defense Strategy (NDS) allows dealing with these components in a paralleled and complementary fashion. Simultaneously, it indicates the government's intention to modernize the Brazilian Armed Forces - which assumes procurement processes - also signals the intention to acquire the necessary materials and systems through national companies – DI - even when involved in partnerships with international counterparts. After a brief background of the current debate situation in Brazil, the perspectives of “Acquisition” and “Procurement” are confronted, both applicable for defense related procurement. Having that done, two models of DI focusing on developing countries are presented and are used as basis for the inclusion of other authors of interest. We conclude that performing a defense acquisition in a developing country is, besides taking into account the steps discussed in the Life- Cycle Costs (LCC), to perform it through the conclusions obtained from the analysis of models for defense industry in developing countries presented by Hoyt (1997) and Maldifassi and Abetti (1994), since such processes comprise the strategy adopted for accomplishing logistics preparation and national development.

Após um período de estagnação no debate brasileiro acerca da construção/reconstrução de uma Indústria de Defesa (ID) no Brasil, ocorreu em meados da década de 2000 um ressurgimento do mesmo. Sabendo-se da importância deste tema, dado seu impacto no planejamento nacional, tanto em termos de defesa quanto de desenvolvimento de forma genérica; o objetivo deste trabalho é contribuir com o debate sobre a preparação logística brasileira através da aproximação das discussões sobre ID e Processos de Aquisição centrados em preocupações securitárias. A união destes dois temas justifica-se na medida em que ambos constituem duas facetas da logística (mesmo que não as únicas) e em que a própria análise da Estratégia Nacional de Defesa (END) possibilita tratar dos destes componentes de forma paralela e complementar. Ao mesmo tempo em que demonstra a intenção governamental em se modernizar as forças armadas brasileiras - o que pressupõe processos de obtenção -, sinaliza também a intenção de adquirir os materiais e sistemas necessários para tanto através de empresas nacionais – ID -, mesmo que envolvidas em parcerias com contrapartes internacionais. Após breve contextualização da situação do debate corrente no Brasil, apresenta-se o embate entre a perspectiva da “Aquisição” em oposição a da “Compra”, passíveis de aplicação em processos de obtenção de defesa. Feito isso, dois modelos de ID voltados para países em desenvolvimento são apresentados e são utilizados como base para a inserção de demais autores de interesse. Conclui- se que realizar uma aquisição de defesa em um país em desenvolvimento é, além de levar em conta as etapas analisadas no custo de ciclo de vida, realizá-la de forma inserida nas conclusões obtidas através da análise dos modelos de indústria de defesa para países em desenvolvimento propostos por Hoyt (1997) e Maldifassi e Abetti (1994) , uma vez que tais processos compõe a estratégia adotada para a operacionalização da logística e do desenvolvimento nacional. / After a period of stagnation in the Brazilian debate about the construction/reconstruction of a Defence Industry (DI) in Brazil , the mid -2000s witnessed its return. Aware of the importance of such issue due to its impact on national planning , both in terms of defense and of development in broader terms, the goal of this effort is to contribute to the debate on the Brazilian’s logistics preparation by bringing together the discussions on DI and on Acquisition Processes based upon security concerns. The union of these two subjects is justified since both are facets of Logistics (though not the only ones) and since the very analysis of the National Defense Strategy (NDS) allows dealing with these components in a paralleled and complementary fashion. Simultaneously, it indicates the government's intention to modernize the Brazilian Armed Forces - which assumes procurement processes - also signals the intention to acquire the necessary materials and systems through national companies – DI - even when involved in partnerships with international counterparts. After a brief background of the current debate situation in Brazil, the perspectives of “Acquisition” and “Procurement” are confronted, both applicable for defense related procurement. Having that done, two models of DI focusing on developing countries are presented and are used as basis for the inclusion of other authors of interest. We conclude that performing a defense acquisition in a developing country is, besides taking into account the steps discussed in the Life- Cycle Costs (LCC), to perform it through the conclusions obtained from the analysis of models for defense industry in developing countries presented by Hoyt (1997) and Maldifassi and Abetti (1994), since such processes comprise the strategy adopted for accomplishing logistics preparation and national development.

Após um período de estagnação no debate brasileiro acerca da construção/reconstrução de uma Indústria de Defesa (ID) no Brasil, ocorreu em meados da década de 2000 um ressurgimento do mesmo. Sabendo-se da importância deste tema, dado seu impacto no planejamento nacional, tanto em termos de defesa quanto de desenvolvimento de forma genérica; o objetivo deste trabalho é contribuir com o debate sobre a preparação logística brasileira através da aproximação das discussões sobre ID e Processos de Aquisição centrados em preocupações securitárias. A união destes dois temas justifica-se na medida em que ambos constituem duas facetas da logística (mesmo que não as únicas) e em que a própria análise da Estratégia Nacional de Defesa (END) possibilita tratar dos destes componentes de forma paralela e complementar. Ao mesmo tempo em que demonstra a intenção governamental em se modernizar as forças armadas brasileiras - o que pressupõe processos de obtenção -, sinaliza também a intenção de adquirir os materiais e sistemas necessários para tanto através de empresas nacionais – ID -, mesmo que envolvidas em parcerias com contrapartes internacionais. Após breve contextualização da situação do debate corrente no Brasil, apresenta-se o embate entre a perspectiva da “Aquisição” em oposição a da “Compra”, passíveis de aplicação em processos de obtenção de defesa. Feito isso, dois modelos de ID voltados para países em desenvolvimento são apresentados e são utilizados como base para a inserção de demais autores de interesse. Conclui- se que realizar uma aquisição de defesa em um país em desenvolvimento é, além de levar em conta as etapas analisadas no custo de ciclo de vida, realizá-la de forma inserida nas conclusões obtidas através da análise dos modelos de indústria de defesa para países em desenvolvimento propostos por Hoyt (1997) e Maldifassi e Abetti (1994) , uma vez que tais processos compõe a estratégia adotada para a operacionalização da logística e do desenvolvimento nacional. / After a period of stagnation in the Brazilian debate about the construction/reconstruction of a Defence Industry (DI) in Brazil , the mid -2000s witnessed its return. Aware of the importance of such issue due to its impact on national planning , both in terms of defense and of development in broader terms, the goal of this effort is to contribute to the debate on the Brazilian’s logistics preparation by bringing together the discussions on DI and on Acquisition Processes based upon security concerns. The union of these two subjects is justified since both are facets of Logistics (though not the only ones) and since the very analysis of the National Defense Strategy (NDS) allows dealing with these components in a paralleled and complementary fashion. Simultaneously, it indicates the government's intention to modernize the Brazilian Armed Forces - which assumes procurement processes - also signals the intention to acquire the necessary materials and systems through national companies – DI - even when involved in partnerships with international counterparts. After a brief background of the current debate situation in Brazil, the perspectives of “Acquisition” and “Procurement” are confronted, both applicable for defense related procurement. Having that done, two models of DI focusing on developing countries are presented and are used as basis for the inclusion of other authors of interest. We conclude that performing a defense acquisition in a developing country is, besides taking into account the steps discussed in the Life- Cycle Costs (LCC), to perform it through the conclusions obtained from the analysis of models for defense industry in developing countries presented by Hoyt (1997) and Maldifassi and Abetti (1994), since such processes comprise the strategy adopted for accomplishing logistics preparation and national development.

This study investigates if a company’s brand identity can be used to influence public authorities in public procurement by possible discretions in the procurement rules, and the importance of this meaning increased business opportunity. The subject of the work, branding in public procurement, is unexplored and may be of interest to a larger market. The study approaches an inductive, explorative, single case study. Literature studies forms a theoretical framework that is combined with interviews with representatives from both public authorities and a company. The study finds that a company can use the part of Brand Identity named Image. To be successful, a company’s image expresses what is important and desired from an authority: security, trust, long-term focus and stability. This reduces the authority’s perceived risk and increases its security, and makes the company a more attractive choice. The study also finds that it is impossible to directly influence an ongoing procurement process. The study is limited to the defense market and procurement of large technical advanced systems, not commodity products. The study focuses on the direct relations between the procuring authority and the tendering industry. It will not discuss the involvement of political forces and their actions, e.g. counter-trade. Possible future research is the following suggestions: Investigation of how political forces have impact on international/ intergovernmental business. This could include the correlation between the size and magnitude of the procurement and political involvement. Investigation of the relationship between the compliance of international procurement rules, the favoring of domestic suppliers, and a nation’s position on Transparency International’s Corruption Perceptions Index. A third extension of this work is to extend its scope to encompass other products or business areas, and make the result more general. The study contributes with knowledge about how branding has influence on public procurement. The result may be of interest to companies, active in the defense market, wanting to increase their competiveness, and for authorities that wish to improve their ability to implement good procurement practices.

R&D Substitute Military Service is the transformation of the Defense Industry Reserve Duty System, and early in the system conversion, the employing enterprise and the community had great expectations. The competent authorities and the organizers have also invested a lot of resources, greater use of space in the system at the surface, the character of the employer and the draftee demand. In this study, a qualitative analysis, through in-depth interviews with the the Rebate employing unit, a draftee, analysis of this system the enterprise of the recruitment and staffing management, organizational effectiveness of the shadow impact as the proposed future sophisticated.

In this study, we address the long-term project pricing problem for a company that operates in the defense industry. The pricing problem is a bid project pricing problem which includes various technical and financial uncertainties, such as estimations of workhour content of the project and exchange &amp / inflation rates. We propose a Robust Optimization (RO) approach that can deal with the uncertainties during the project lifecycle through the identification of several discrete scenarios. The bid project&rsquo / s performance measures, other than the monetary measures, for R&amp / D projects are identified and the problem is formulated as a multi-attribute utility project pricing problem. In our RO approach, the bid pricing problem is decomposed into two parts which are v solved sequentially: the Penalty-Model, and the RO model. In the Penalty-Model, penalty costs for the possible violations in the company&rsquo / s workforce level due to the bid project&rsquo / s workhour requirements are determined. Then the RO model searches for the optimum bid price by considering the penalty cost from the Penalty-Model, the bid project&rsquo / s performance measures, the probability of winning the bid for a given bid price and the deviations in the bid project&rsquo / s cost. Especially for the R&amp / D type projects, the model tends to place lower bid prices in the expected value solutions in order to win the bid. Thus, due to the possible deviations in the project cost, R&amp / D projects have a high probability of suffering from a financial loss in the expected value solutions. However, the robust solutions provide results which are more aware of the deviations in the bid project&rsquo / s cost and thus eliminate the financial risks by making a tradeoff between the bid project&rsquo / s benefits, probability of winning the bid and the financial loss risk. Results for the probability of winning in the robust solutions are observed to be lower than the expected value solutions, whereas expected value solutions have higher probabilities of suffering from a financial loss.