Boeing is one of the largest aerospace and defense contractors in the world. They produce high-end aircrafts for both commercial and military organizations throughout the world. In addition to aircrafts, Boeing produces products and tailored services that include satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training (Boeing, 2011). Boeing employs over 160,000 employees in over 70 countries worldwide. Business planning is an overwhelming task for such a large company like Boeing, considering they are constantly influenced by external and internal factors that involve legal and ethical issues, all while striving to maintain the highest social and corporate responsibility. Factors such as competition, economic conditions, and technology directly influence Boeing’s strategic, tactical, operational, and contingency planning.
The Planning Function
When planning, a manager must decide what they want to achieve and how they are going to achieving it. This cycle of operation known as the basic planning process incorporates six steps to successfully reach organizational goals. These steps are: situational analysis, alternative goals and plans, goals and plan evaluation, goal and plan selection, implementation, and monitor and control. Each of these steps plays an intricate part in the formal planning process. The first step is to identify all goals and analyze them thoroughly. Situational analysis is “a process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration” (Bateman & Snell, 2009) For example, If Boeing was thinking about launching a new airplane, it would be imperative to conduct a thorough analysis of its construction, performance, reliability, safety, etc. The next step in the planning process would be to generate possible alternative goals, plans, and solutions. Boeing’s management might consider new, attainable alternatives like sell-ability and a target market for where the aircraft will be sold. The third step in the planning process is to evaluate the organizations plans and goals. In the goal and plan evaluation step of planning “managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. They will prioritize those goals and even eliminate some of them from consideration” (Bateman & Snell, 2009). At this point Boeing’s management would decide which plans to prioritize and which ones that will be eliminated before the final selection. The next step of the planning process is where Boeing would make a decision based on the previous assessed goals and plans. This stage of the planning process is called implementation. Implementation is defined as “Detailed listing of activities, costs, expected difficulties, and schedules that are required to achieve the objectives of the strategic plans” (Business Dictionary, 2011). In the case of Boeing, the final plan would be distributed to each department within the company to start production.
Impacts on Planning
Although planning is not intended to be a random response to an incident, part of the planning process involves adapting and overcoming to any issues that may arise in an organization. When an incident occurs in an organization, it is the responsibility of management to take corrective action on the issue. Issues that may arise that affect an organization are: legal issues, ethical issues, and corporate social responsibilities.
Legal issues have the potential to seriously affect current and possible future plans of an organization. In the year 2000, Boeing paid the United States 54 million dollars due to selling defective helicopters to the U.S Army. Five servicemen were killed during a...