Government Policies Regarding Military Programs And Budgets Have A Direct Impact On Our Business

1130 Words Nov 7th, 2016 5 Pages
Government policies concerning military programs and budgets have a direct impact on our business. If and when congress passes a reduced budget and cuts have to be made, our business is at the mercy of those cuts to military programs. Should there be a shift in the direction of military leaders for spending on new things that we don 't support, the impact would be immediate and devastating to our business. Our division relies solely on the local government agency for wining contracts and creating work and revenue. New companies are continually entering the market and vying for a share of the contracts being offered by the military. Due to some stipulations by the government, minorities and small companies have an advantage. To win a contract, sometimes that means our company has to hire a smaller company, subcontracting out work to them to meet requirements. Therefore this creates an unknown cost element when bidding for contracts. On the other side, due to some equal or larger companies bidding on the same contracts creates immense competition due to matching our capabilities, such as a larger employee resource pool, equipment resources and available facilities to perform the work. So whether we 're up against other companies, smaller companies, new companies or larger companies, competition is furious and the impacts of not winning contracts could not only keep us from not being as profitable for a quarter or more ultimately hurting the overall company…

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