The Impact of Mission, Vision, and Primary Stakeholders on the overall success of the Boeing Company
The Boeing Company is the world's largest aircraft manufacturing corporation. It designs, develops, manufactures, and sells commercial aircrafts, military aircrafts, missiles, electronic and defense systems, satellites, and highly advanced information and communication systems for airline companies, aerospace research institutes, defense organizations, and governmental bodies. The Boeing Company aims to become the leading player in the commercial aircraft industry by promoting innovation and imagination, and serving the worldwide customers with technical excellence and superior services. Its vision and values are based on integrity, quality, customer satisfaction, shareholder value, and corporate social responsibility. The mission, vision, and corporate values shape the way Boeing formulates its business strategies for its worldwide operations. All these values and corporate principles provide a framework to the organizational members to adopt the best practices for the success and sustainability…… [Read More]
Planning Function of Management at Boeing
As a provider of military equipment, a developer of defense technologies and an innovator in the field of aeronautics, the Boeing Corporation is a complex global network of divisions, departments and geographic contexts. For a corporation such as Boeing, a leading force in the development and retail of military technology, and lately with a focus on missile guidance systems and other non-commercial endeavors, the era of globalization presents both opportunities and challenges in the areas of planning and management. Changes in the global marketing scheme have created a considerably more open market for the company which, given its recent history of decline and contraction, is in a position of need with regard to enthusiastic buyers and new markets. By contrast, its position of dominance in the American market is likely also to be imperiled by the competitive entrance of foreign firms in the…… [Read More]
Boeing: Competitive Position
The name of the Boeing Corporation, the "world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems" is synonymous with the production of commercial and military aircrafts (Boeing in brief, 2011, Boeing). It is organized into two branches: Boeing Commercial Airplanes and Boeing Defense, Space & Security. Its products include aircrafts; satellites; weapons; communications, informations, defense and logistics systems (Boeing in brief, 2011, Boeing).
The commercial passenger airline industry has been amongst one of the most hard-hit by the recent economic downturn. The 2008 recession curtailed business and tourist-related travel. Also, more businesses are communicating remotely rather than face-to-face. The rising costs of fuel and labor disputes have hurt the major airlines, resulting in a decline in demand for aircrafts in the short-term. However, Boeing believes that in the long-term, demand for its products will continue: "passenger air traffic rose 8%…… [Read More]
9% the previous year, and Net Profit Margin up to 5.1% from 1.9% the previous fiscal year. For all full financial analysis of the last five years of Boeing's financial history, please see the Appendix for The Boeing Company atio Analysis. While the company continues to excel at profitability, the areas of improvement include Days-to-Sell Inventory, which grew to 147 days in FY201, and Operating Cycle (time from taking an order to fulfilling it and getting paid) increased from 138 days to 180 days in FY2010. These financial results underscore how critical it for the company to continually invest in improving operational performance to overcome slow sales in certain business segments
(Joiner, 2009). Heavy investments in quality management and compliance are necessary to reduce these costs over the long-term as well (Parks, Connor, 2011).
The greatest strengths of Boeing include its strong market position in the commercial aircraft market (Donnini,…… [Read More]
Boeing is one of the United States' largest exporters and is a predominant aerospace and defense corporation. Boeing is the world's largest global aircraft manufacturer (by deliveries and revenue), and the second-largest defense and aerospace contractor (ranking in Defense News). The history of Boeing is as exciting as any in history, and encompasses thousands of individuals, innovations, and spectacular technological developments in airline design and manufacturing. Of course, most everyone is familiar with the 1903 Wright Brothers flight at Kitty Hawk, North Caroline. That same year, 22-year-old William Boeing left college at Yale and moved forward to the West Coast. Through a series of events, Boeing wanted to learn more and more about aviation finally partnering with George Westervelt, a former engineer and airline enthusiast. By 1915, Westervelt and Boeing designed a new twin-float seaplane called the B&W (Yenne, 2005, 3-18).
What followed was a series of challenges, setbacks, successes,…… [Read More]
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…… [Read More]
Boeing Company's Health And Safety egulatory Compliance
Boeing Company is a multinational company and is currently the world's largest airplane producer in the world. It is headquartered in Chicago., IL. It manufactures the largest passenger planes at the moment as well as manufacturing rockets, and other space shuttles. It also serves as a defense contractor being the world's second largest company to do so. It also serves as an air transport for hire for executive and VIP services as well as being of help to the state in times of crises with air travel management. As a large-scale manufacturer, the company makes use of several chemicals among other inputs that contribute to environmental degradation in several ways. This paper identifies several agencies and state organs within and outside America helpful that regulate Boeing's activities and ensuring that they promote environmental conservation.
Boeing in America
Boeing company has it base in…… [Read More]
Introduction – Boeing and Airbus
Airbus mission and vision: Airbus is commonly known to be the most popular commercial aircraft headquartered out of Toulouse France. With small and huge airliners, that can seat 100 to 500 passengers, the company has a global human resource of over 50,000 and aircraft strength of over 16,000. Being over 4 decades old, it has a loyal customer base that lays the foundation for its mission and vision – i.e. global presence with a personalized touch.
Boeing mission and vision: Boeing is the biggest competitor for Airbus in the airline industry however it expands its workload in other domains like the design and manufacture satellites, defence weapons along with commercial airlines as well as information and communication systems. The company’s mission and vision includes the production and provision of performance-oriented logistics for the commercial airline manufacturers including competitors like Airbus.
General Strategy – Boeing and…… [Read More]
Boeing Case Study: Financial Planning
As globalization force changes to business practices to remain competitive, organizations will be challenged to maintain a working environment that meets business demands. Hence, Boeing is no exception. A growing trend toward outsourcing production or services exists. Outsourcing has spawned different meanings: acquiring a product or service rather than producing it, contracting out of a company's non-core, non-revenue-producing activities to specialists, or delegating to an external service provider the day-to-day operation of a business process. Chiefly, outsourcing is the passing of service provision or production to another party, but it is not the same as passing of the responsibility. Insomuch, Boeing is faced with outsourcing challenges due to a fragmented supply chain, thus incurring financial implications.
Benefits vs. Risks
Global or domestic outsourcing can offer many benefits in which Boeing chose to embrace for its manufacturing of the 787 to foreign partners. The benefits of…… [Read More]
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 oeing is competing. This is characterized by very expensive and price that can reach tens of millions for one aircraft. The customers are generally governments or other large organizations that have a high negotiating power. A negotiation for a set of planes can reach several million of the bill.
From this perspective, oeing needs to have a negotiating margin and to be able to take the right decisions when it comes to completing a deal or not. If this a long - term collaboration, the company can let the deal go for less of the initial price. All this is,…… [Read More]
What aspects of Boeing's supplier relations program specifically address reduce inventories; maintain quality, regulatory compliance, and competitiveness? How planning and scheduling, ordering, and logistics come into play when running with minimal amounts of inventory.
The relations of Boeing are quite expansive and address all notable concerns of a big business. For it to reduce inventories through its supply chain relations program, Boeing has put in place guidelines and procurement policies, which act as a framework and applied in order to help govern all necessary purchases. Purchasing material of the right quality, quantity, at the right time, at the right price from the right source is one of the organizations overarching procurement tenets. To add to the inventory controls instituted by prudent supply management, Boeing is also known for their incorporation of leaned principles and techniques, which help to maximize efficiency while improving quality and overall safety (Sell, 2005).…… [Read More]
McNerney needed to concentrate on this function, as several challenges in the past, such as labor disputes leading to walk offs, had hindered the organization. Weber (2008) details how McNerney skillfully has been able to lead external forces, specifically the Defense Department, yet that internal leadership has yet to be fully developed. For this reason, the threat again of labor stoppages is a major concern for the company. McNerney needs to focus more on this function, if he hopes to stop having the same workforce challenges in the future. Leading by empowering his employees, including the elimination of much of the bureaucracy in the organization, will go a long ways towards inspiring them to accept the organization's objectives as their own.
The multi-step process of controlling, for a manager involves: setting performance standards, measuring actual performance, analyzing the results, and taking corrective action when needed. Holms (2005) notes when…… [Read More]
The mission statement of the Boeing Company is fairly simple, as it is based on the company functioning as a global enterprise that is unified and a leader in the aerospace industry. The company seeks to attain that leadership in this particular vertical industry through a number of different means, foremost of which includes embracing diversity and utilizing international resources, concepts and employees to truly earn its regard as an global organization. t seeks to actively amalgamate the aforementioned resources and to pool through them to actuate a degree of solidarity in the company and in its actions. To this end it is involved in a number of different processes within several international settings. Globalization, then, is one of the chief ways in which The Boeing Company attempts to fulfill its mission as operating as a leader in aeronautics. This organization also hopes to maintain a leadership presence…… [Read More]
Expanding trade as well as an expanding tourism market, the volume of goods and people moving from place to place around the world is consistently increasing. As more and more people around the world are able to get out of poverty, domestic travel and cargo markets are also likely to increase (we've already seen this in countries like China and India). In 2005, Boeing's Commercial Market Outlook stated that over the next twenty years, the Asia Pacific region would account for about 36% of total deliveries (Gross, 2005). Looking at Boeing's 2010 Commercial Market Outlook, Boeing notes that most economies in the Asia Pacific region were able to weather the recent economic recession and they are recovering. Boeing states that "with China and India leading the growth among emerging markets, the region's economy will grow at a rate of 4.6% per year for the next 20 years, significantly outpacing the…… [Read More]
oeing had utilized vast amounts of time, labor, energy, money and resources into the Apollo Program of the 1960's for the program finally to be cut to practically nothingness in the 1970's.
I. The Apollo Program:
Expenditures for the cost of the Apollo Program were in the total amount of $25.4 billion dollars. There were 11 manned Apollo flights, 381.7 kg of moon material was recovered during the course of the Apollo missions and although there are those who believe that the motivations for the Apollo missions were that of a "psycho-political" nature, the one gift that America and the world were given by the Apollo program was the realization of the reality of "how fragile the earth is."
At the time the Apollo program essentially caved in oeing also was losing hope in the production of commercial aircraft as they had placed their hopes on the 747 and the…… [Read More]
" (Hill, 1)
Again, it is borne out by our understanding of globalization that larger economies must experience some form of retraction in order to become compatible with trade partners. Here, researchers have observed that "at high transport costs all countries have some manufacturing, but when transport costs fall below a critical value a core-periphery pattern spontaneously forms, and nations that find themselves in the periphery suffer a decline in real income. At still lower transport costs there is convergence of real incomes, in which peripheral nations gain and core nations may lose." (Gould, 1) for the United States and such firms as Boeing, this is a very real threat for which competition may only be engaged by reduction of costs, true competitive edge in an open and global marketplace and a core adaptability to the needs and innovations which are currently overwhelming it.
Bernstein, Aaron. (Dec. 6,…… [Read More]
The Large Cargo Freighter (Dreamlifter) delivered major assemblies in the first half of 2007, and the company expects final assembly of the first 787 later in the second quarter of 2007. Boeing also expects to fly 787 engines on an airplane test bed sometime in the first quarter of 2007.
In summary, the three dominant factors of commercial aircraft demand, business jet demand, and supply chain planning, forecasting, and manufacturing fulfillment are central to Boeings' strategic and contingency planning. In addition to all of these significant new opportunities, the role of the Internal Governance Officer to provide a higher level of oversight and ethical guidance is making the audits from the Justice Department less intrusive on daily work in the company. The governance office now has 90 employees full-time working on ethics programs and preventative action plans to keep the company out of the ethical problems faced in the past,…… [Read More]
Boeing to Pieces, Fortune writer, Jerry Useem, focuses on the crisis at once the world largest manufacturer of commercial jetliners and the biggest U.S. defense contractor, which had led the company into a nightmarish situation. Boeing that was undoubtedly the leader in its field is now suffering from declining profits while its leadership ethics are being questioned by the public and other stakeholders. How did a company that never had any serious rivals for a ling time suddenly became a vague entity and is positioned very low in the professional ethics index. These are some of the questions that Useem tries to answer by focusing on Boeing's recent history and Philip Condit's seven-year tumultuous reign. After reading the article, it becomes absolutely clear that Boeing did not suffer because of European Airbus or because of diversification, but the real problem existed at the top. Boeing suffered from poor leadership, which…… [Read More]
Boeing had with their 737, aiming to better understand how
Boeing 737 is regarded as the most commercially successful airplane in the world. Commercial figures back these assertions, while the company strategy, relying on innovation and on building competitive advantages based on technological advances, has been the main argument in constructing this commercial success.
This paper aims to look at things from two main perspectives, First, it investigates the technological advances that Boeing has proposed with its 737 model. It looks at different improvements to the fuselage, the engines, the design etc. all of which contributed to making the 737 more attractive for potential buyers.
Second, it looks at the commercial aspect and analyzes how the number of delivered orders varied over time. The aim of this analysis is to better understand fluctuations in sale, but also to correlate these trends with the technological advances that would have been discussed…… [Read More]
As the lack of work sharing in: the design process and outsourcing of manufacturing of components, contributed to the flaws on the aircraft. (the 787 Family 2011)
When you step back and analyze the work sharing arrangement of the 777 and 787, it is clear that this played a major role in determining the success of the plane. As the increased amounts of collaboration and keeping component production in house produced: the innovations and quality that the 777 is known for. While the 787, has less collaboration and outsourced most of the component production (which contributed to the underlying problems affecting the aircraft). As a result, the work sharing arrangement during the design and manufacturing process would play an important part in determining the number of design flaws that were occurring.
Parts / Resources
On the oeing 777 there are a number of different parts / resources that are implemented…… [Read More]
Lean Synchronization at Boeing
The author of this report has been asked to focus on a particular realm and part of operations management as it relates to a particular firm. The operations management facet that shall be the focus of this report is lean synchronization and the company that shall be the focus is aircraft manufacturer Boeing. Boeing has done very well for itself in the grand scheme of things but they face competition from a good number of companies with the largest competitor being Airbus. Boeing has never rested when it comes to the adjustments and pivots it makes. Indeed, they have been in the news and/or raised the attention of government regulatory agencies like the National Labor elations Board. While Boeing is facing heavy competition and operational management challenges including from the government and overall political climate, they are making the right overall moves in terms of lean…… [Read More]
The use of Value Stream Mapping to define the next generation of airlines has given Boeing a competitive advantage in the global market for commercial aircraft (Smock, 2008). As part of the sourcing and strategic procurement process on the Dreamliner, the company has created teams that are process-centric, looking at how to be more efficient at not only the actual design of the project, but the processes that the designs are based on. In addition, Boeing has worked to bring suppliers into the design, development, and launch phases of a new project.
Future State of Lean elationships
Consistent with the strategies Boeing is using to manage its supply chains, seeking greater levels of collaboration strategic sourcing is the company's vision of having a virtual team of customers (both internal and external), prime subcontractors and subcontractors (Blake, Eash, 2003, p. 659). This model of the future of lean relationships also speaks…… [Read More]
There are a number of reasons why companies engage in strategic alliances. Typically, these are rooted in the idea of comparative advantage, where the two companies bring their respective strengths to the project, theoretically these strengths complementing each other. There are some industries where the practice is quite common, in particular pharmaceuticals and defense. Indeed, in some of these industries, companies can have multiple strategic alliances at any given time. A good example of this is Boeing and Lockheed Martin, both defense contractors with expertise in aerospace. They have collaborated on an air transportation system for the commercial air industry (Boeing, 2007), and on jet fighters for the Department of Defense (Thompson, 2013). This paper will focus on the latter as the strategic alliance to be discussed. Ultimately, the long-range bomber project failed for the alliance, which actually highlights one of the major reasons why such alliances are…… [Read More]
4. Ongoing sense-making
Ongoing sense-making will require Boeing's leaders to learn from the cues they have previously extracted, and apply what they have learned to change initiatives in the future. For example, if turns out that their new global product strategies are causing frustration and resentment among employees because they require extra work with no extra compensation, then they will need to learn from this mistake and make efforts to circumvent problems like this in the future. Change is an ongoing process and so is learning.
In order to make sense of certain situations -- especially those that involve uncomfortable or unfamiliar changes -- people often take a retrospective approach to how they view the situation. In other words, they look back at how similar situations have been handled in the past, and what the outcomes were, and apply those to what is happening in the present.…… [Read More]
aircraft Boeing made
Boeing 787 Dreamliner is known for its twin engine, long-range, and mid-size, jet airliner developed by Boeing Commercial Airlines. The capacity of the new jet airplane is between 210 and 300 passengers. The capacity of the airplane is more dependent on the variant of Boring 787 Dreamliner. One of the main characteristics of the Boring 787 Dreamliner is its fuel efficiency as compared to the other Boeing jet airliners. As compared to 767, 30% lesser fuel is consumed by the new Boring 787 Dreamliner. Secondly, most of the materials used for the construction of Boring 787 Dreamliner include composite materials. Some of the main features of the new Boring 787 Dreamliner include windshield that is four paneled, engine nacelles that have the ability of noise reduction, and a nose contour that is much smoother (Carbaugh, 2010, p. 34).
Duration of 787 development
The development of…… [Read More]
Building the Boeing 787
Boeing is a maker of airplanes and other related items. It is the leading company where aerospace makers are concerned, and manufacturers both military and commercial jetliners. Satellites, defense systems, missiles, and many other electronics and components are also made by Boeing. It contracts with NASA, and provides components for the International Space Station (ISS). Customers in 150 countries use products and support services supplied by the company to meet their aerospace needs. It is headquartered in Chicago, Illinois, and employs more than 170,000 people. The majority of them have degrees, and many of those degrees are high-level. These employees are in the United States and 70 countries throughout the world. Boeing is a publicly-held company and traded on the New York Stock Exchange. It was founded by William Boeing in 1916 in Seattle, Washington, and has grown steadily since that time. Revenue in 2012 was…… [Read More]
Federal Contracts Awarded to Boeing Company:
Boeing Company is the largest aerospace company across the globe and the leading manufacturer of commercial defense and jetliners, space and security systems. In addition to being a top exporter in America, the Boeing Company supports airlines and the United States and allied customers in 150 nations worldwide. The company's position in the aerospace industry originates from its long tradition of aerospace innovation and leadership. Boeing continues to expand its product line and services in order to meet the emerging needs of its customers. Boeing's broad range of capabilities include developing new and more efficient members of its commercial airline family, developing advanced technology solutions, integrating military platforms, and organizing innovative customer-financing options.
History of Boeing Company:
Boeing Company has a history that stretches back to 1916 when the United States timber merchant, William E. Boeing, founded the aero products firm after he and…… [Read More]
First McNerney brought in General Counsel Douglas Bain to help clean up the corruption from the inside. He also plans on quelling all management feuds within the company. The rift within Boeing had haunted production since the merger of the McDonell Douglas Corp. with Boeing in 1997. Successfully uniting the still arguing groups of what is now Boeing would increase company profits and improve ethical behavior. McNerney has made a prime example of himself for his company to follow. Insiders report his extremely personal effort to change Boeing's environment including excellent employee treatment. He has also set in place rewards for management based on employee treatment and relations. McNerney has also reduced the company's legal, P.., and finance departments at the corporate head quarters site in order to further unite the corporate head quarters under one general practice. Personally, I think McNerney should continue his personal effort to improve ethical…… [Read More]
Selling Boeing Jets in China
Boeing Marketing Plan Outline
In defining a marketing plan for the promotion and sales of the Boeing 787 in China, the global market dynamics of the commercial aircraft industry need to be first considered followed by a framework for strategic marketing planning and execution. The extent of strategic market planning any aircraft manufacturer engages in will have a direct effect on their global ability to compete (Posey, 2008).
Global Market Dynamics
The global growth of mid-range commercial jets, ideally suited for the Chinese commercial jet marketplace, is expected to grow to $124B in 2012, representing nearly 1,400 in China alone (Posey, 2008) (MIT Lean Advancement Initiative, 2012). These jets are designed to seat between 66 and 90 passengers depending on the configuration ordered. Figure 1, Global Market Dynamics of the Commercial Aircraft Industry, shows the factors Boeing must orchestrate in their strategic marketing plans, with…… [Read More]
Human Resources Management at Boeing
Corporate Governance Strategies at Boeing 5
CSR and Ethical Training
Boeing's CSR Progress
Boeing is the world's largest aerospace company and the leading manufacturer of commercial jetliners and military aircraft combined. Boeing has built a model that focuses on operating sustainably and being good corporate citizens. However, to effectively integrate an effective CSR model so that the employees use this on a tactile level this will require a significant training effort. This analysis will provide a brief overview of the company, their CSR statements and desired outcomes, as well as provide some analysis on the training that the organization will need to conduct in order to meet its objectives.
Boeing is the world's largest aerospace company and the leading manufacturer of commercial jetliners and military aircraft combined; Boeing also designs and manufactures rotorcraft, electronic and defense systems,…… [Read More]
Comparison to Airbus
oeing is headquartered in Chicago and Airbus is headquartered in Toulouse. oeing was founded 54 years sooner than Airbus. It numbers over 166,000 employees, whereas Airbus only numbers 48,500. oeing's net sales for fiscal year 2002 amounted to a total of $54 billion, Airbus' were less than half ($24 billion). The American company has a total of 14,000 aircrafts on the market; Airbus' aircrafts do not exceed 3,000. oeing also holds other six units, whereas Airbus holds no additional units.
8. oeing 787 Dreamliner vs. Airbus A380
The new oeing aircraft 787 Dreamliner is the company's latest airplane and it is designed to be safer, offer travellers more comfort, consume less fuel (by 20%) and increase its luggage capacity by 40 up to 60%. The Airbus A 380 is the largest airplane on the market, being able to transport up to 800 people at one flight. However…… [Read More]
company code of ethics for Boeing. In this document I will explore Boeing's code and attempt to reveal important items relevant to understanding how a functional code of ethics may be applied to a large organization. I will first describe a general background of the company to help provide context in this evaluation. Next, I will give an overview of the code of conduct and highlight important details that are worthy of discussion. This paper will also include how this code of ethics can be applied to the differing levels of responsibility and accountability within the company itself. I will also examine a recent specific case study of ethical violations within Boeing to help test the validity and quality of this company's attitude towards ethics. This specific case will help understand important factors on the stability and feasibility of their ethical codes and programs.
Boeing's company website describes the…… [Read More]
company is Boeing, which operates in two distinct sectors. About half the business is in commercial aircraft, and the other half is in defense contracting, usually aircraft, rockets and that sort of thing. Both industries have minimal competition, but the defense industry in particular is dependent on U.S. government spending for its survival. There is always risk when half of your company has only one customer. The aircraft industry faces risk in part relating to the price of fuel and overall demand for air travel.
Boeing has a moderate amount of financial risk. The debt-to-equity ratio is 5.22, which means that the company is mainly financed through debt. It should be noted, however, that most of this is current liabilities. Boeing does not have any preferred shares. So the capital structure is 83.9% debt and 16.1% equity. The liabilities are divided between 66.2% short-term liabilities and 33.8% long-term debt.
Boeing's…… [Read More]
Other strategies included increased communication and teamwork. More recently, the difficulties faced by the airline following the recession and the fear for jobs has also served to create more unity, but this has not prevented disagreements.
y comparison Airbus is a far more diverse firm, starting out in 1970 as a consortium of manufacturers from different European countries with members from France, Germany, Spain and later the UK. The culture of the organization may be argued as highly diverse, reflecting the national cultures from which the member companies originated. The internal culture had to deal with a wide range differences, including languages and general cultural practices. The firm has also had conflict, in 2011 firm faced a walk out by 11,000 German workers in protest at the requirement for productivity gains (C News, 2011). However, the European firms that made up Airbus, comes from an environment where there is generally…… [Read More]
Boeing 777X is an aircraft currently under development. The aircraft is based in part on technology that was developed for the 787 Dreamliner. The company intends this project to be the "largest and most efficient twin-engine jet in the world," and also expects it to have enhanced cabin features that will improve upon the in-flight experience. The jet is intended as a competitor for the Airbus A350, which entered service at the beginning of 2015. Boeing hopes that the 777X will be ready for production in 2017. This paper will outline the process by which Boeing determined to proceed with this project.
The commercial jet business is global in nature. The market for long-haul jets is basically a duopoly, with Boeing and France-based Airbus. The market for smaller jets is dominated by Bombardier (Canada) and Embraer (Brazil). The only other player in the long-haul jet market is Moscow-based…… [Read More]
, 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., 2005). The attacks of September 11, 2001 (9/11) brought about long-lasting changes in the airlines industry and travel sector. To make matters worse for Boeing, the potential customers for the Sonic Cruiser were U.S. based airlines -- the very airlines that had been most negatively impacted by 9/11. The Sonic Cruiser was officially cancelled by Boeing on December 20, 2002 (Norris et al., 2005). Whether this is attributable to design flaws or simply the dramatically changed economy is not really…… [Read More]
For example, the company has consistently focused on identifying the optimal source for its aircraft components. To date, the company has outsourced more than 50% of its total manufacturing needs to overseas suppliers, resulting in $600 million in cost savings annually. The parts needed for a given aircraft are then delivered to the company's Everett plant where just-in-time principles reduce inventory levels and provide further cost savings. This approach has been met with some protests from Boeing workers, though, but the company counters that it is not possible to remain competitive without using this outsourcing strategy. Moreover, in many cases, when foreign countries purchase aircraft from Boeing, one of the stipulations includes that at least some of the work on the aircraft will be performed in that country (Heizer & ender, p. 27).
The supply chain managers at Boeing therefore have their job cut out for them when it comes…… [Read More]
To create a system where a flat organizational model can be implemented in a large organization such as Boeing several aspects must be taken into consideration and implemented. The organization must align employees with high technology and skills, through recognition and training. Additionally, in what can only be defined as a quasi-flat organization, with less management hierarchy but with management still in place the communication must be improved between those in management and those in production. This communication model requires transparent leadership roles and intense observational and communication skills on the part of both segments. The system must also ensure the development of a team structure among employees that strengthens the individual and group ability to communicate and work together to create innovation and for individuals to be a part of decision making and to be empowered to do so. Lastly, the whole of the organization must improve and implement…… [Read More]
2.0 Strategic Situation Analysis
In order to understand the nature of aircraft manufacture at Boeing, it is important to have a clear vision of how outsourcing plays into the manufacture of aircraft. Let us use the example of Boeing's Dreamliner. The following illustration explains how outsourcing plays a key role in Boeing's business strategy. These represent TIER 1 suppliers.
From here, the parts go to the plant in Everett and are assembled by TIER 2 suppliers as follows:
These two illustrations clearly help to develop an understanding of the relationship between TIER 1 and TIER 2 suppliers at Boeing.
2.1 SOT Analysis:
SOT analysis is a planning method used to evaluate a company's strengths, weaknesses, opportunities and threats. In a business analysis, all of these factors are analyzed for the company under study and their competitors. This analysis allows the researcher to see both…… [Read More]
(Williams 2011, pp. 218 -- 222)
Critically Analyze the Selection Process at Boeing
The process of becoming hired by Boeing requires showing how an individual must have the skills that the company is looking for. This is because the firm uses a program called ET. This is a tool that managers will use to match the person with the kinds of skill sets that Boeing will require in specific positions. The most common strategy for receiving this training; is to attend the company's 11-week certification program at the Washington Aerospace Training and esearch Center. This will guarantee an interview with the firm. (Dunlop 2011) (Boeing Interview Questions 2012) (Arkel 2007)
Once someone reaches the interview process is when they agree to be subject to a background check and a drug test. During the interview, Boeing will use a round robin behavioral format. This can take place at the company's facilities…… [Read More]
Management and Leadership
Impact of management and leadership
The aspect of management and leadership are very crucial in the success of any organization as long as they are practiced in the right manner and leadership as well as management tenets are put into proper use. These two principles cannot do without each other and they have a kind of symbiotic relationship where one cannot efficiently operate without the presence or influence of the other.
A leader is noted to be that person who has the ability to influence others in order to achieve a common goal that has been agreed upon. A true leader for that matter is one who does not have selfish interests but the interests of those whom he or she relates with and leads in the process of achieving a required goal (Woodroffe Noel, 2012).
The issue of leadership has for long been the subject of…… [Read More]
Airbus is currently implementing new logistics processes tat it expects to cut costs by 20%. Part of tis is because Airbus as been flying parts for planes to central locations to facilitate assembly. However, it is peraps more important tat tis increases inventory turnover; because like all airplane manufacturers, Airbus as a backlog: if tis backlog is eliminated or lessened by more expedient manufacturing, Airbus produces at a faster rate and is able to sell more products. Te backlog is also counter-cyclical; customers get teir orders faster wen less are buying. Te current backlog is over four years wereas cycles generally last ten or less wit prolonged recessions rare. Only a sustained recession of more tan several years can treaten Airbus'es production pipeline. Tis is unlikely as air travel as already recovered from its early-2003 low. Accoring to te exercise, a new airplane needs a total of 85 days in…… [Read More]
Comparison to oeing
The general perception is that oeing is the undisputed international leader on the aerospace market and that Airbus is generally unable to properly function and its success is only based on state subsidies and sponsorships. However, in his book oeing vs. Airbus: The Inside Story of the Greatest International Competition in usiness, John Newhouse proves the opposite. He states that Airbus deserves the title of international leader as they produce similar products of sometimes superior qualities than oeing. In addition, they do this by using fewer financial resources and with the aid of fewer people than oeing. Also, to prove their superiority, he cites the years 2004 and 2005, when Airbus outnumbered oeing's sales and orders.
8. oeing 787 Dreamliner vs. Airbus A380
The A380 is the largest airplane on the market, having the ability to transport 550 up to 800 travellers, depending on the model; whereas…… [Read More]
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 an edge over Southwest Airlines. It tells about the strengths and weaknesses of other competitors in contrast with Southwest Airlines.
Factors Weight Southwest Airlines United Airlines Delta Airlines Ratings Score
Score 1. Low fares.15 4.60 3.50 4.60 2. Customer Service.15 2.30 4.60 3.50 3. Employee Relations.15 4.60 3.50 3.50 4. Rate of Expansion.10 2.20. 4.50 4.50 5. Marketing.15 4.60 4.50 4.50 6. Finance Structure.15 4.40 4.40 4.40 7. Management Policies.15 4.60 4.60 2.20
EXTERNAL FACTOR EVALUATION MATRIX
The external…… [Read More]
Decisions in Paradise
Nik and the team face significant challenges in expanding Boeing's development and business base on the Island of Kava. Despite the limitations of infrastructure, there are significant opportunities for Boeing to expand its commercial aircraft division and also educate the island's students to contribute in software and engineering careers if they choose the career direction. Boeing must focus on the aspects of commercial aviation while also seeing the island from a developmental standpoint, concentrating on how best to enable greater education levels for the inhabitants who have skills in math, science and programming. Nik can do well by doing good for the island nation, concentrating on the corporate values of Boeing which seek to invest in their surrounding communities to enrich them, while also seeking out opportunities to nurture a development and engineering base on the island as well.
Forces Involved in the Formulation of the Problem…… [Read More]
Proctor & Gamble entered foreign markets early in its existence, and relied on semi-autonomous foreign subsidiaries to manufacture market and distribute products that were developed in the United States. This tactic relied on P&G owning the subsidiary, but giving the subsidiary considerable operational leeway, so that the arrangement almost worked more like a licensing deal. This strategy persisted for P&G through the 1980s.
In the 1990s, this strategy became less viable, at least relative to the alternatives. The strategy had arisen and persisted in an era where barriers to trade between nations were high, and by the 1980s these barriers were beginning to fall -- it was the beginning of the modern era of globalization. National markets were becoming regional markets -- for example with the common market in Europe and the Canada-U.S. Free Trade Agreement. In addition, P&G's retail partners were becoming global in scale, something that demanded…… [Read More]
As a result, in such conditions, the flight control systems commands the engines to increase thrust without pilot intervention and with an accuracy that no pilot could achieve.
Human Factors Considerations
The F/a-18D Hornet that slammed into a residential neighborhood in San Diego last December came from the first family of fighter jets with full fly-by-wire technology, where a flight control computer gathers data from on-board sensors to control flaps and other control surfaces that were mechanically driven on planes decades ago. ut for all their high-tech appeal, do fly-by-wire systems distance pilots from the feel and behavior of their airplanes to the point that crashes become more likely (Milstein)?
In aviation, human factors is dedicated to better understanding how humans can most safely and efficiently be integrated with the technology. That understanding is then translated into design, training, policies, or procedures to help humans perform better (Human Factors).…… [Read More]
The oeing 747-300 model was designed to hold 600 passengers. ut the founder of America's Flight Safety foundation, Jerome Lederer, commented that evacuation of such numbers in the event of disaster would be troublesome. Sitting next to an emergency exit did not promise anything, as shown by this tragedy. Only a bare few escaped and only as fate had it. These were the musings of many when dead bodies were brought down by helicopters from Mount Osutaka in bright blankets (Magnuson, Aviation Safety Network, AAIC, C, C (. This disaster and others before and subsequent call for more responsive prevention measures to save lives in this era of massive global air travel.
The Safety Promotion Center was opened in 2006 to train employees and alert them to the importance of airline safety and personal responsibility for safety. The ultimate responsibility falls squarely on the shoulders of Japan Airlines…… [Read More]
According to these airlines, the public can help by contacting their Congress people.
According to the airlines in question, there are in fact (or have been) regulations in place in order to discourage the phenomenon of uncontrolled speculation and manipulation in world markets. These have however been weakened or removed, resulting in the rapid rise of fuel prices today. The claim is in fact that rising demand and diminishing supply cannot account for the rise in oil prices that have been experienced over the last year.
Alexandra Marks (2008) also addresses the role of the Government in encouraging higher fuel prices. According to airline industry experts and analysts, Congress is not doing enough to curb speculation. If this is not done very soon, according to these experts, the aviation industry could face a collapse in the not very far future, that is in danger of crippling the economy of the…… [Read More]
This leads to psychological tactics being used between owners and customers. During the slowing economy, everyone wants to earn more and save more. Owners should take care to make the customers feel that they are valuable and that the services owners provide are wanted so that customers are willing to go out to eat and spend money. The rising cost of food can destroy a business if not properly handled.
Businesses can do promotions in order to encourage customers. For example, if a customer spends $10, they get $1 off coupon for the next time. When they come in next time, it is helping to encourage a next time. Customers come again because they want to save money and the customer helps them do that. Another way is to run promotions around holidays and have discounted meals or specials. They could do this on days like Valentine's Day or Christmas.…… [Read More]
Labor and Union Studies in ashington and Oregon States
The United States labor movement has its roots in the complex trappings of the industrial revolution. Laborers were just starting to come to the United States from foreign countries because they had learned that there were many jobs available for even the most unskilled worker. People were also moving from rural areas in America to the cities in an attempt ti have a better life also without the uncertainties that governed farm profits. The growth in many industries was a result of new technologies that allowed people to purchase items that had previously been made by hand far cheaper because the products could now be mass produced in the factories. The problem was that the owners of these factories did not care how the workers were treated because there were many more begging to have a low-paying job in a factory…… [Read More]
Aircraft Fleet Management
The fleet planning of an airline deals with the way airlines decide which type of aircraft to acquire and then utilize their aircraft on different routes. The main aim of fleet planning is usually to add value to the airlines operations by increasing efficiency. For example, operating a large wide bodied jet on a short route with only a few passengers would be highly inefficient, due to the higher overhead costs than a smaller, lighter jet. Likewise, if only smaller aircraft are available for the most popular route the airline may not be maximizing their potential to generate revenues and profit due to limited capacity (Clark, 2007). This demonstrates that fleet planning requires forward thinking and can be a strategic element of airlines ongoing operations.
Different strategies may be adopted by airlines. Southwest Airlines, known as the first low cost carrier, adopted a strategy which saw…… [Read More]
Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?
There are several reasons which explain why the Amazon Company has a shorter cash cycle than its competitor Barnes & Noble. First and foremost, Amazon is a much bigger company than Barnes & Noble both in terms of income and in the number of products that it sells. hile Barnes & Noble sells some things besides book and ebooks, this is their primary product. Amazon sells everything including books, although this is a very small portion of their income. Another reason for this is that Amazon is doing better financially than Barnes & Noble. The ebook trend has bitten into Barnes & Noble's income, which they tried to combat by creating their own ereader, the Nook but this was far less successful than the Amazon ereader,…… [Read More]
Military Aircraft and Their Effect on Commercial Aviation
Civil aviation deals with the organization and use of aircraft as a means of commercial transportation. The principal interest is the use of aircraft on scheduled and chartered flights to carry passengers and cargo, but the subject also covers the use of aircraft for pleasure, business, and medical services. ecause of the international character of civil aviation, governments play a major role in its conduct and regulation, through both national legislation and international agreements. This governmental influence was a major factor in commercial airline operation until the early 1980s, when the U.S. domestic market was deregulated. The result was a massive increase in competition, which led in turn to a reorganization of the airlines into larger groupings. It seems likely that this process will continue in the international market, which will lead to an increase in air travel, and increased pressure on…… [Read More]
PRODUCT, PRICE, PROMOTION, PLACE ) OF INGAPORE AIRLINE & #8230;focus on Product ( brand, service quality, service excellence ) .Why product ( brand, service quality, service excellence) price, promotion, place of ingapore Airlines is important ?
ingapore Airlines is a full-fledged carrier service that combines a high-level product with excellent flight service. As of 2011, IA possessed 108 modern passenger planes (mostly Boeing 777 (PREWIRE, 2005) whose average age was six years and three months (ingapore Airline, 2012). IA has, accordingly, achieved the reputation of possessing one of the world youngest fleet of aircraft (PREWIRE, 2005). IA is a member of tar Alliance. he is also the first airline company to internationally operate the world's largest passenger aircraft called Airbus A380 that is comfortably equipped to cater to its passengers' needs.
IA has also diversified into aircraft handling and engineering .Meanwhile, her subsidiary, ilkAir, operates local flights with smaller…… [Read More]
The baggage handling system (BHS) project is in motion. Initially, our company Boeing Airport Equipment Automated Systems, Inc. (BAE) stipulated that no change requests should be accepted. However, it is proving impossible to ignore the influx of change requests from major stakeholders, namely the airlines.
As project manager, I have determined that our policy regarding change requests should itself be changed, from a public relations standpoint. We cannot risk further isolating core stakeholders, for risk that the entire project fall apart later due to technical, design, conceptual, or implementation flaws that might arise. It is my duty as project manager to attend to the change requests, and I believe that BAE could learn a great deal from reading and responding to those requests. We shall do so in a systematic and organized manner.
Change requests might interfere with our workflow. "Each requested change and recommended action must…… [Read More]
Positives and Negatives from a Century of Aviation
Little did the Wright brothers know, on December 17, 1903, when they successfully tested their flying machine at Kitty Hawk, what an influential industry they were launching. They could not have known in their wildest dreams that ninety-nine years later, an airport called Chicago O'Hare would facilitate some 383,362 landing and takeoff cycles each year. Or that by 1967, sixty-four years later, aerospace would become America's leading industrial employer, with some 1,484,000 employees, and sales of $27 billion, according to author Donald Pattillo (Pushing the Envelope). Nor could the Wright brothers know that a man would fly to the moon, and walk on the moon, by 1969, just sixty-six years after that little plane at Kitty Hawk left solid ground for a few triumphant seconds.
ut though the Wright brothers' crude little aircraft got the aerospace industry off the ground to become…… [Read More]
In 2003, he resigned both posts as news of the twin scandals emerged. The Air Force froze the contract that Druyun had negotiated, precipitating Condit's resignation and retirement.
Condit had joined Boeing in 1965 as an engineer and moved into management in 1973, working on marketing the 727. He completed an MBA at Sloan in 1975 and returned to Boeing, progressing rapidly up the ranks. By 1983, he became VP and General Manager of the 757 division before moving on to other VP posts. In 1996, he moved from President to CEO and a year later was named Chairman.
There is little to indicate that Condit himself was a significant contributor to the governance problems at Boeing. Although he was an engineer by training, he spent much of his time at Boeing in marketing. The hiring manager, Bill Erskine, who had hired Ken Branch in the first place, had just…… [Read More]
market capitalization of 23.011 billion, oeing is the nation's largest producer of commercial aircraft and the world's leading aerospace company. It operates in four principal segments: Commercial Airplanes, Military Aircraft and Missile Systems, Space and Communications, and oeing Capital Corporation. As the world's market for air travel fluctuates with the risk of war, so do oeing's revenues. However, as the United States moves towards a footing that may include future wars against perceived 'terrorist states,' oeing stands to gain from military aircraft and weapons production. As such, it intrigues investors as its market is a careful reflection of the front pages of the world's newspapers.
To successfully evaluate oeing's stock, we must analyze its fundamentals and the performance of comparables, as well as market performance. A projection of future revenues is necessary, along with an estimation of the cost of capital with which oeing produces. These allow us to provide…… [Read More]
While Cadbury was initially vulnerable resulting in this take over, Kraft had to borrow heavily to afford the final price of 850p per share. In the coming months and years, Kraft will have to balance against recovering the money put into this acquisition (Wiggins, 2010). A risk, many British politicians and citizens alike fear will mean the end of their signature chocolate in an effort by Kraft to increase their profit margin quickly.
Case Study 2: Discussion
The Kraft acquisition of Cadbury is a corporate negotiation making headlines across the world both for the magnitude of the deal and the incredible hostility which marked the negotiations prior to the final signing of the agreement. Cadbury wound up in a financially vulnerable position after several strategically bold maneuvers ultimately resulted in a poor stock showing for the newly de- merged Dr. Pepper Snapple drinks company, and the reliance of Cadbury on…… [Read More]