Boeing Commercial Airplanes Group: Decision 2001
I. Current Situation
A. Financial Performance During the past five years, revenues continued to increase, but organizational difficulties caused erratic profitability and due to the engineer's strike, it had come downhill in 2000. B. Strategic Posture
1. Mission-Vision For people to work together as a global enterprise for aerospace leadership. 2. Objectives The Company wants to dominate the world's aircraft market as it once used to. 3. Strategies Boeing want to run a healthy core business by leveraging strengths through new products and services and by means of opening up new frontiers.
II. Strategic Managers
A. Board The board is comprised of twelve members. All of them had only been a member of the board for the past two decade, most of them from years 2000 up to date. The members come from inside and outside the organization. B. Top Management When the Corporation merges or buys out other companies they often keep on the key players from the new acquisition. The Chief Executive Officer and Chairman of the Board of Boeing Commercial Airplanes is Philip Condit.
III. External Environment
A. Societal environment is outstanding. Commercial airplanes have made international travel so economical that it became a common event for both pleasure and business. B. Task Environment is very competitive. Airbus Industries had been its main competitor even though Airbus has only entered the industry late into the century.
Authorities in this industry is very strict with what manufactured airplanes they approve of which is understandable given the high risk entailed with the airplanes especially the commercial ones. Even with the mergers and acquisitions done by the company in airplane industry, there is a strict steps that need to be done before pushing through it and to be approved by it.
With the flu bug entering the scene in Asia, this has made some abrupt changes whereby most airlines has delayed or backlogged from their orders. External Factor Analysis Summary
Expert in customizing
Wide Range of Products
Varied products and services Threats
Asian Flu bug
Brought about drawbacks
C. Summary of External Factors
At the present time there are three external factors that are critical. They include the high demand for faster and more convenient ways of traveling, the strict policies and rules implemented by aviation and aircraft authorities and the intense competition in the industry.
IV. Internal Environment
A. Corporate Structure Boeing is composed of three strategic business segments, Boeing Commercial Aircraft, Boeing Military Aircraft and Missile Systems and Boeing Space and Communications and other units. B. Corporate Culture Stakeholders of the company all share the same goal, that is, to have people working together to provide its customers quality products by having a diverse and involved team of employees and executive creating the products of the company. Their culture is an engineering driven company. C. Corporate Resources
1. Marketing - The marketing strategies are consistent with the company's objectives of bringing in new customers and bringing back repeat customers. 2. Finance - Boeing's liquid ratios are not strong. A good "rule of thumb" is for the current ratio to be 2 and the acid test should be 1. In Boeing's case, the year 2000 current ratio is 1.151, and hasn't been close to 2 in at least the past three years. This means they can cover their current liabilities with their current assets only at 1.151 times. 3. Research and Development Boeing is constantly trying to make their...
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