Northrop Grumman has shown remarkable performance over the years. Some of the key aspects of analysis for the future are described below, keeping in mind the current scenario of performance. The company relies hugely on one client, the U. S government. Changes in government policies and contracts affect the performance of the company majorly as almost 90% of the company’ s revenue comes from the U. S government. Although this has huge advantages, relying on one major client has its own drawbacks. So, the firm presently and for the future aims at catering to clients across the globe with various technological needs centering not only upon defense but also on other areas.
The company has developed effective schemes, whereby it can compensate the cost of temporary changes or stoppages of contracts given by the U. S government (V. R. Petrescue & I. F. Petrescue, 2013). Northrop Grumman understands that being a technology driven company, its success solely depends on the performance of its workforce. Hence, a qualified team of experts is mandatory. The company imparts training for the development of its employees and will continue to so in the future (Reynolds & Stair, 2009).
The company undertakes projects based on future estimates. If there are any changes in the estimates taken by a large margin, it may affect profitability and cash flows of the company. Hence, to ascertain a more likely scenario, while calculating estimates, it is necessary for the firm to undertake the thorough study of present and future market conditions, changes in the economy and trade-related regulations as well as changes in the political scenario. The firm relies hugely on its suppliers and subcontractors for different raw materials and components.
So, it becomes important for the firm to analyze the credibility of these suppliers. For this, it relies on appraisal reports and other technical analysis strategies. To strengthen such endeavors, the firm has chosen to develop long-term ties with its existing suppliers for their future endeavors.
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