December 21st, 2011
Financial Analysis of The Boeing Company
As part of a great company, the mutual fund department needs to outperform the prior year so as to contribute to the strength of our company. To be strong we must have good investments that will provide future income for the company and to meet the needs of the stakeholders. We must aggressively reinvest our revenue and look for investment opportunities that will grow along with the company. The Boeing Company is an investment opportunity that will strengthen our portfolio. Peter Lynch once said, “Investing without research is like playing stud poker and never looking at the cards” (Investopedia, 2011). The following SWOT Analysis and research will prove the strength of Boeing as a great investment and support the decision to invest in this company. To further understand Boeing, we must look at the stakeholders, both internal and external to see if Boeing meets their needs and wants. This is paramount to the future success of their company and is an important part of this equation.
Who are the stakeholders of Boeing?
The stakeholders of the company come from a wide variety of areas and those includes both inside the company and outside and are referred to as internal and external stakeholders. Internal stakeholders would include the owners, Chief Executives, employees, directors and public relations. All of these internal stakeholders have individual responsibilities that correlate with all of the others. Dealing with the boundary-spanning relationships which are complex but critical to the success of the company, success is ultimately based on the relationships developed and managed between internal and external stakeholders (Waddock, 2009). External stakeholders are comprised of such groups as suppliers, distributors, manufacturers, unions, creditors, community activists, investors, government agencies, the public and special interest groups (Gurau, 2011). Suppliers can include companies that provide parts, supplies, or raw materials. Distributors are links between the companies and can be found between the suppliers and the company or they can represent the product for the company such as sales or marketing firms. These relationships are critical and each of the individual groups or entities is affected by the direction or actions of the company. The relationships are also affected by the current state of the economy, current market factors, economies of scale, and other geopolitical factors. With Boeing being an international company, all of these factors are multiplied by the state of affairs everywhere the company conducts business. The government as a stakeholder represents both ends of the relationships. A large part of Boeing’s contracts are with the government which creates complex relationships and involves other government agencies such as the Internal Revenue Service (IRS), Environmental Protection Agency (EPA), Congress, Homeland Security and the Justice Department. All of these stakeholders have a vested interest in the company’s success and will be scrutinizing the company operations as well as an investment analyses like this one. It is understood that no matter what a company does, how it performs or even if it performs; every result ends up somewhere in the company’s financial reports. Fulfilling the wants and needs of the Stakeholders
Now that we have defined who the stakeholders are we need to look at their needs and wants. What is it that creates or sustains the relationships between them and Boeing? Is it value? What is it they want or crave to maintain the current relationship? Is it a certain return on their investment or is it an agreement within the local community to make change in the company that will create less pollution in the neighborhood? Managing the stakeholder’s relationships is a fulltime job at any company let alone an international company like...