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These different factors play a role in setting long-run strategy at Boeing, such as product development and decisions regarding manufacturing capacity. The company must also make human resources decisions based on expected demand, and the period of planning can stretch 5-10 years or more.
Tactical planning can also be a long-term process at Boeing. This is impacted by competition within the defense industry, the expectations for DoD budgets and the state of the economy. These types of decisions will reflect the specific products that Boeing develops and to whom those products will be marketed. Operational planning is impacted by the firm's internal financial situation, the availability of key human resources and by the current state of relations with states around the world. Boeing needs to make decisions, for example, about the sourcing of inputs. If the relationship with China is on the rocks, for example, Boeing needs to seek out other potential suppliers of inputs in order to produce its goods.
Contingency planning is a critical component of planning at Boeing. The company invests tremendous sums of money in product development, and sometimes must do this with no guarantee of orders from the project's apparent patrons. Thus, Boeing must have plans in place to recoup investment costs if deals are delayed or scuttled. Three factors that will impact contingency planning at Boeing are relationships with clients, sunk costs and the ability to shift emphasis to other projects. These factors relate to the ability of Boeing to convert...
Boeing realizes the risks it takes when spending hundreds of millions of dollars on product development and this guides the contingency planning within the organization.
The planning process at Boeing is critical to the company's success because of the high cost of product development and the long time frames. Boeing must therefore eliminate the risks associated with planning by fostering strong relationships with its customers through the product development process, and by implementing contingency plans that will allow the company to recoup sunk costs in the event that expected sales fail to materialize.
Works Cited:
Boeing. (2005). Boeing's game-changing product strategy. Boeing Point-to-Point. Retrieved April 12, 2011 from http://www.boeingcapital.com/p2p/archive/09.2005/Boeing_Game_Changing_Strategy.htm
Cohan, P. (2010). Strained U.S.-Beijing ties could cripple Boeing's China strategy. Daily Finance. Retrieved April 12, 2011 from http://www.dailyfinance.com/story/company-news/strained-u-s-beijing-ties-could-cripple-boeings-china-strategy/19341406/
Wayne, L. (2006). Boeing ethics woes take toll on the bottom line. New York Times. Retrieved April 12, 2011 from http://www.nytimes.com/2006/06/30/business/30boeing.html
Weinberger, S. (2008). Boeing pitches sixth-generation aircraft strategy. Wired. Retrieved April 12, 2011 from http://www.wired.com/dangerroom/2008/01/boeing-pitches/
Works Cited:
Boeing. (2005). Boeing's game-changing product strategy. Boeing Point-to-Point. Retrieved April 12, 2011 from http://www.boeingcapital.com/p2p/archive/09.2005/Boeing_Game_Changing_Strategy.htm
Cohan, P. (2010). Strained U.S.-Beijing ties could cripple Boeing's China strategy. Daily Finance. Retrieved April 12, 2011 from http://www.dailyfinance.com/story/company-news/strained-u-s-beijing-ties-could-cripple-boeings-china-strategy/19341406/
Wayne, L. (2006). Boeing ethics woes take toll on the bottom line. New York Times. Retrieved April 12, 2011 from http://www.nytimes.com/2006/06/30/business/30boeing.html
Weinberger, S. (2008). Boeing pitches sixth-generation aircraft strategy. Wired. Retrieved April 12, 2011 from http://www.wired.com/dangerroom/2008/01/boeing-pitches/
This will include the capacity to respond to press questions and the ability to negotiate with the government and obtain fee reductions. The customers' negotiating power is the first important factor that affects the organization's strategic, tactical or operational planning process. Indeed, this is a particularity of the industry where Boeing is competing. This is characterized by very expensive and price that can reach tens of millions for one aircraft.
Airport Operation The future requirement of a new, large aircraft with the capability of carrying 500 to 1000 passengers has been a major topic in the past few years. This issue has attracted huge concerns from various stakeholders in the aviation industry, especially aircraft manufacturers and airlines. The concerns are partly attributed to the fact that such an aircraft will weigh more than 1 million pounds. With the delivery of these
, 2005). A second airplane design in the replacement program was the 747X, which would have provided better efficiency than the 747-400 with a longer plane body (Norris et al., 2005). Boeing couldn't generate much excitement around the 747X, but the Sonic Cruiser offered stronger appeal (Norris et al., 2005). Continental Airlines was a particularly interested customer, but the feedback from the airlines focused on operational costs (Norris et al.,
And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances. In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have
Organizational Change of Northrop Grumann Corporation Analysis of Change Northrop Grumman: Interview in relation to Program Mergers & Acquisitions Comparisons Looking to the Future Organizational Change of Northrop Grumann Corporation Although acquisitions did not prove to improve the performance of firms the activities of acquisition persists and government policy toward the industry of defense has approved consolidation for the purpose of cost savings that are nominal at best. Mergers and acquisitions are events that greatly modify the
If one does not understand what the strategy is, how could they relay it or explain it to someone else. This can either distort the message or prevent it from reaching all levels of the organization, which in either way can hurt the outcome of any project and ultimately the organizational goals as well. Additional barriers in communication a strategy could be the corporate culture itself when such strategies can