Every company or organization belongs to a market industry which includes three components, the remote environment, the industrial environment and the operating environment. These factors impact the decisions that organizations make in order to provide the best services and products while maintaining high profit for the company. Lockheed Martin is a multinational aerospace manufacturer and advanced technology company, formed in 1995 through the merger of Lockheed Corporation with Martin Marietta (Lockheed Martin, 2008). Lockheed Martin is affected by the macroeconomic environment, the economic decisions that the organization itself makes, and the industry environment. Organization IndustryLockheed Martin is an organization that relies heavily on its defense contracts to generate revenue. In 2005, 95% of Lockheed Martin's revenues came from the U.S. Department of Defense, other U.S. federal government agencies, and foreign military customers (Defense News, 2007). Lockheed Martin earns this revenue by winning government contracts. As previously noted, Lockheed Martin has a large customer base with the US Department of Defense. The company is the government's largest provider of IT services, systems integration and training (Lockheed Martin, 2008). Other customers that generate revenue for Lockheed Martin are international governments and certain commercial sales of products and services (Lockheed Martin, 2008). The major business areas covered by Lockheed Martin are aeronautics, including tactical aircraft, air transport and aeronautical research and development, space. Systems, including space launches, commercial satellites, government satellites and strategic missiles, and the Systems and Computing group, including missiles and fire control, naval systems, platform integration, C4I , federal services, energy programs, government and commercial IT services, and aviation/aerospace services. . In 2007, these areas generated sales of $12.3 billion, $8.2 billion, and $21.4 billion, respectively (Lockheed Martin, 2008). This organization belongs to the oligopolistic market structure. The oligopolistic market structure involves a few sellers of a standardized or differentiated product, a homogeneous oligopoly or a differentiated oligopoly (McConnell, 2004, p. 467). In an oligopolistic market, each firm is affected by the decisions of other firms in the industry to determine their prices and production (McConnell, 2005, P.413). Another factor in an oligopolistic market concerns entry conditions. In an oligopoly, there are significant barriers to market entry. These barriers exist because in these sectors, three or four companies can achieve sufficient sales to achieve economies of scale, making it impossible for small companies to survive against the large companies that control the industry (McConnell, 2005 ,p..