Given the recent budgetary challenges between the President of America and the US Congress, the well discussed “fiscal cliff” has created a dynamic that will ultimately become a stress test between government and business.
It is interesting to note that in 2011, the top 10 defence contractors in America received contracts in the amount of $134 billion. The top three are Lockheed Martin ($39.98 billion), Boeing ($21.45 billion) and General Dynamics ($19.47 billion). As such, the impact to a company’s bottom line will be greatly impacted with either a win or a loss of a government contract.
However, the relationship between business and government is based on a number of factors. Some of which may be business orientated, some of which may be political, some of which may be based on a military objectives and some may be based on overall economic objectives of the country.
Furthermore, the situation may be further intensified by the fact that many of these defence contractors employ over 100 000 workers.
Business decisions can be difficult to make even in simple supply and demand scenarios. When layering factors above and beyond the straight business such as political, militaristic and economic outcomes, the stress between government and business is palpable. Therefore, my conclusion is that political lobbying may in fact skew the management decisions which would typically occur in a business to business relationship.
Work Cited:
http://www.cnbc.com/id/42494839#.