Planning, an imperative part of any business environment, is a daily focus at Boeing Corporation. The organization faces daily challenges to produce products to fit the consumer wants for air travel, comfort, and efficiency. While Boeing deals with a constant need for innovative ideas it also deal with the challenges of its main competitor airbus whom has historically been subsidized by many of the European nations to compete with Boeing for a larger share of the market. Boeing management, through excellent planning, an ethics policy that demands large returns for shareholders, and constant work to comply with ever changing legal demands of the industry has led to the constant success of the company. "It was the jet Boeing didn't build that averted what could have become one of the worst crash landings in the company's 91-year history--and cleared Boeing to conquer the skies again."(Masters, 2007). Boeing's Management team's work hard to plan what project's will be best for customers, lead to the largest returns to shareholders, and keep a reputation of being a world leader in the aviation industry. "In October 2002, executives of the aircraft manufacturer met with a group of global airline representatives at a conference center on the Seattle waterfront. The executives were trying desperately to figure out what to build next to hold off a soaring Airbus."(Masters, 2007) Boeing had made plans to build a high speed jetliner prior to this meeting. Through careful planning and expert decision making Boeing officials found that the world was more interested in comfort and efficiency. Boeing's high speed aircraft would have been a huge economic let down because of the huge price tag and expensive operating costs. After that meeting Boeing changed plans to make the Dreamliner which is a more cost effective and comfortable aircraft that has enough orders to keep Boeing busy building the aircraft for customers until the year 2015. While Boeing has spent many resources planning what to build, Boeing is now faced with the problems of how to meet customer demands of the new aircraft. Boeing Corporation is at an all time high for sales. "For the first time, its commercial-airplane unit earned more than its defense side."(Masters, 2007) "Boeing's backlog of orders increased 47% to a record 208 Billion, more than seven times the units 2006 revenues."(Masters, 2007) This has presented a separate problem for the organization.
The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be.
While the company business strategy may be working presently, over time, minute comparable financials, ease of product imitation, and multiple core competencies will send jetBlue aircrafts and business crashing. Currently, jetBlue defines themselves as cost leader competitors but also differentiates their service with a unique business model. Attempting too many competencies is both difficult and rarely successful. The solution to cease this integrated struggle involves perfecting one core competency and increasing support among investors to amplify market share and provide a dominant competitive edge.
Despite the uncertainty and inherent risks, however, even if WACC exceeds IRR, the board may be well advised to accept the project. It's expected that in the first few years, Boeing will incur more expenses that income. The revenues will come at a later date when the 7E7 planes are delivered. The project will have to be evaluated periodically and management will have to make changes to ensure that the company is profitable based on current and future conditions. The board's prerogative is not to give Airbus a profit sanctuary' by not accepting the project but rather to maintain or increase its market in the industry even if it's not profitable in the shot-run. Boeing has deep pockets' and should be willing to challenge its competitors.
The SWOT process will start by examining the internal strengths of the Boeing Company of today. One of the most dominant strengths possessed by Boeing is its ability to follow the changes in a market that is continually changing. The type of products produced by The Boeing Company demands the use of state of the art technology while maintaining all the proper safe guards for sa...
The article by Binyamin Appelbaum and Christopher Payne demonstrates the complexity of one of the world’s biggest supply chains. It was interesting to learn how many different components went into the production of the airplanes. The different geographic locations in which the parts were built was fascinating as well. I had no idea that a manufacturer in Alabama would have parts shipped in from places as far away as Wales and France. The amount of coordination and collaboration needed to maintain efficiency within Airbus must be incredible. Later in the article I learned that the small town of Mobile, Alabama had been trying to develop an airplane factory for more than 30 years. It wasn’t until 2012 that they finally began assembling passenger
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
This paper focuses on the impact of Management of Information Systems (MIS) on Boeing. In this endeavor, it highlights the new technologies that will most likely impact on the organization and structure. In addition, the paper discusses possible impacts of new technological advancement on the company, to remain competitive in the face of the new technological developments. In this regard, the paper reflects on the possible strategies that Boeing is likely to adapt so that it remains competitive that is, by introducing new technological developments. Finally, with such a move of adapting or not adapting the new technology, this research paper looks at risks that are associated with both moves that the company might opt for.
To achieve the above goals and fulfil Boeing’s mission, the following objectives will guide company:
...gainst all odds, it has become the companies greatest asset. In order to protect their asset, Boeing is not becoming complacent, and is instead striving to make a wide variety of aerodynamic improvements.This has cemented the 737 as a market leader, and it will retain its lead for decades to come.
Airbus and Boeing have developed similar capabilities, and an intense competition to be the number one in aviation. The market is a duopoly market, resulting in a low profit margin for both companies. There is slow industry growth in the aviation industry, and no clear market leader. The barrier to exit is high, which leads to intense rivalry between Airbus and Boeing.
Technology Innovation: - Boeing should carefully analyze the market to evaluate the trends in the airline industry and aggressively invest in a new product line (top dog strategy) that could counter Airbus’s A380.
out in this industry and attempt to understand which of these scenarios are more likely to occur by applying game theoretic. reasoning for this situation. Based on this analysis, you will then. make recommendations concerning what your team thinks Airbus or Boeing. should do [2].
In management, each of the four functions, planning, organizing, leading, and controlling, are crucial to the development of any business. Involving employees in the planning process help them understand the goals of the organization. Planning is analyzing a situation, determining the goals that will be pursued, and deciding in advance the actions needed to pursue the goals. This paper will evaluate the planning function of the Halliburton Company and analyze the impact that legal issues, ethics, and corporate social responsibilities have on management planning along with examples of each, and analyze three factors that influence strategic, tactical, operational, and contingency planning.
Boeing 787 Dreamliner was first announced to the public in January 2003 with approximated costs of five billion dollars , since the sales of the aircraft were high it was supposed to enter commercial service during 2008 but the building up of aircraft seemed more anticipated than expected , since the management decided to use composite materials as an alternative for traditional metals as composite materials are lighter , stronger , cheaper and also resistance to wild variety of chemical agents including acid rain and salt spray as these are the conditions under which metals suffer , Boeing also shared their views in development of air craft with suppliers which effected in a project significantly more anticipated than expected . More than three years later after the project exceeded the estimated budget at last 787 entered commercial service in September 2011.
As Boeing’s CEO, Frank Shrontz promised to increase earnings and return on equity. Boeing had a history of making money when its competitors did not, but Mr. Shrontz wanted higher returns. The airline industry was characterized by large cash outflows for R&D and manufacturing and long payback periods over long life cycles for each new airframe design. Companies had to have deep pockets to keep the operation going while waiting for a return on their investments. If Mr. Shrontz could increase the return on equity for Boeing, it would increase the likelihood of Boeing’s continued success well into the future.