Phoenix MGT 526 Signature Assignment: Organization Presentation

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MGT526_NorthropGrumman_Cyr_W1.docx

Running head: NORTHMAN GUNTHROP 1

NORTHMAN GUNTHROP 2

NORTHMAN GUNTHROP

Shawn Cyr

Mr. Romano

MGT 526

21 September 2020

Introduction

Northrop Grumman Corporation is one of the largest companies in the world today. The company operates in the defense technology sector as well as aerospace. The organization today has more than 90000 employees across all its operations with a revenue that is in excess of $30 billion. It is one of the largest corporations in the United States and is among the Fortune 500 companies. The company is a leader in innovation in the defense sector and today it is currently leading in the development of long-range strategic bombers that today can drop both nuclear and conventional weapons. There are several projects which the company is working on including the production of rocket boosters for NASA. The organization is also a leader in the building of intercontinental ballistic missiles.

Northrop Grumman Corporation engages in providing of various security services to governments and independent entities. There are systems, products, solutions, cyber, control, command, surveillance, logistics, as well as command and control between all the operations. There are various segments of the organization such as Mission Systems, Technology Services, Innovation Systems, and Aerospace Systems.

Industry

The aerospace and defense industries are core parts of the world economy that sometimes deals with issues of accountability because of the nature of the operations. Northrop Grumman today competes with several companies in defense and federal civil marks, as well as international defense. The primary competitors of the organization today are BAE systems, Booz Allen Hamilton, Boeing, General Dynamics, and Lockheed Martin. There are several core characteristics in the industry that contribute to the success or failure of firms in this industry.

The first industry characteristic is that there are few firms that are in intense competition and they have long operating cycles. The competition is at the core of the operations and this is seen through the bidding intensity for the various opportunities that are there in the operations of the industry. There are always competitor protests when it comes to awarding of the tender’s present.

The second characteristic in the markets as a result of the competitor is that there are few jobs which can end up being worked on as partnerships between several companies. It is not uncommon for all the organizations to come together on a single project as partners for the temporary basis. Even when these organizations are given contracts, the nature of the industry means that they must share it out certain aspects of the contract to other competitors. At the end of the day, there are companies who come in as subcontractors to the winner of various bids. In the defense and aerospace industry, it is common to find the contract being awarded to a peer company and the competition ending up supplying to the winner as customers.

Brief History

The Northrop Grumman company began in the 20th century and it was founded on Long Island in New York. One of the first achievements of the organization is the building of an American Navy Aircraft during the second world war. When the war ended, the organization went into the manufacturing of aluminum canoes through the remaining left-over materials which were not now required using the aircraft. After the organization manufactured these canoes, it was later to go into the defense sector through the making of all-weather radar, ballistic missiles, stealth bombers, fighter aircrafts, as well as the Apollo Lunar Module. The history of the organization can be traced back to the first establishment in 1939 and the founder was Jack Northrop. It was incorporated first in Long Island before moving further to Delaware in 1985. The Cold War led to the expansion of the organization by acquiring a series of companies that were noteworthy in the industry such as Westinghouse, TRW INC., and Grumman Aerospace. The organization also expanded its operations to other areas through innovative leadership. The company also continued to expand through acquisitions of other smaller competitors to increase its footprint in the industry. The next important aspect in the operations of the organization is through the purchase of Orbital ATK in 2018 which was later renamed to Northrop Grumman Innovation Systems. The growth of the company going into the long run is what has made it one of the largest defense contractors in the United States and around the world.

Milestones

There are several milestones in the history of the company that has contributed to its success the way it is today. It has become one of the largest defense contractors because of these milestones that it has been able to achieve. The first notable milestone is during World War 2 when the organization was able to build an American Navy aircraft. This was the first product of the company which has led to its success so that in the industry. It showed that it has the capability to engage in the industry. The second milestone by the organization was after the Cold War when it was able to acquire a series of organizations where they bought several noteworthy organizations. The move for acquisitions is what led to the consolidation of the defense industry to bring forth several large organizations. The acquisitions ushered in an era of large corporations competing in such an industry with limited opportunities. The final milestone by the organization is when it acquired Orbital ATK to get business into the Northrop Grumman Innovation Systems. the company was able get into an industry where it can manufacture critical systems for various defense needs.

Business Opportunity

In the defense industry, it is important to make sure that there is regular strategic decision making to give the organization a competitive advantage. One of the areas that it can go to is to increase its presence in the cyber security market. This is an industry which is continuously growing, and they can work towards ensuring that individuals and governments are protected against threats of cyber-attacks and hacking. The protection of data on the internet is an area where it can invest in heavily for a greater impact around the world. It can go into cloud security, data security, network security, and identity and success.

Management

The opportunity that is present to go into cyber security requires the management to engage effectively in the function of leading. The management needs to lead the company into these new areas. The management should engage in transformational leadership for achievement of these goals. The leadership is important in making sure that it changes to the new conditions. There might be more need for cyber security today compared to other things such as nuclear weapons.

Resources

https://www.forbes.com/companies/northrop-grumman/#423aaba53c84

https://news.northropgrumman.com/news/features/engineered-for-success

Shuai, X., & Chmura, C. (2018). Are social networks a double-edged sword? A case study of defense contractors. Economic Development Quarterly32(3), 210-224.

Mahoney, C. W. (2019). Acquire or Expire: Publicly Traded Defense Contractors, Financial Markets, and Consolidation in the US Defense Industry. Defense and Peace Economics, 1-18.

Carr, R. (2020). An Examination of the Financial Sensitivity of the Defense Industry to Spending Strategies of the United States Government.

https://www.marketwatch.com/investing/stock/noc