The UK Defence Industry - Research Paper Example

The paper 'The UK Defence Industry' is a perfect example of a finance and accounting research paper. It includes the internal analysis of the industry by highlighting the competitive forces present. It also includes the financial analysis of three companies, namely Rolls Royce plc, Smiths group, and BAE systems. The defense sector in the UK is one of the most open defense equipment markets in the world. It has been formed by a strategic partnership between the government and the defense industry.

The UK possesses a top-of-the-line industrial base, equipped with advanced technological provision and support. To improve the efficiency of cost and project management, the UK government decided to partly privatize the defense equipment acquisition process (Key Note, 2014). The industry is supported by defense equipment manufacturing companies like Rolls Royce, Smiths Group, BAE systems, etc. These manufacturers are provided with sufficient updated data by the Defence Equipment and Support Principal Security Advisor team (DE&S PSA) regarding guidance and continuity policies.

The team provides sufficient advisory support to reduce the continuity and security risks (GOV.UK, 2013). The UK government builds a good relationship with the supplier companies to yield the best defense equipment and services. The government uses contractual delivery services as opposed to traditional procurement methods. Importance of the researchIn the UK, the defense equipment sector, being an open market, attracts many privately-owned companies that enter into contracts with the UK government.

The study of this sector is most important because it will give the reader insight into how the UK defense sector, which is considered one of the most powerful defense units globally, operates its supply chain of defense equipment. This study will also help us understand how different countries can benefit by following the UK's procurement strategy.