Management Planning - The Boeing Company
Boeing is an aerospace company, a manufacturer of commercial jetliners and military aircraft. Boeing also designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communications systems (Boeing Company, 2010). The purpose of this paper is to evaluate management planning for the Boeing Company. The Boeing Company’s business is conducted by its employees, managers and corporate officers led by the chief executive officer, with oversight from the Board of Directors. The Board’s Governance, Organization and Nominating Committee periodically review the Company’s corporate governance principles and current practices (Boeing Company, 2010). Business planning at Boeing is persuaded by internal and external factors such as: legal issues, ethics, and corporate social responsibility. Factors such as laws, economic conditions, and competition influence the company’s strategic, tactical, operational, and contingency planning (Boeing Company, 2010). Legal Issues
The planning process of the company can be problematical, at times, by legal issues, which can put the company in a bad position. In August of 2000, the Boeing Company settled two lawsuits that allege the Seattle-based manufacturer placed defective gears in CH-47D "Chinook" helicopters and then sold the aircraft to the United States Army; the amount of the settlement was for $54 million. Boeing used two subcontractors, Litton Precision Gear of Bedford Park, Illinois and SPECO Corporation of Springfield, Ohio to manufacture the flight-critical transmission gears for the helicopter. One of the gears, manufactured by Litton, failed in flight, causing an Army Chinook helicopter to crash and burn while on a mission in Honduras in 1988. Five servicemen aboard were killed. Two of the gears manufactured by SPECO failed in flight in Chinook helicopters. One craft, which crashed in January 1991 during Operation Desert Shield in Saudi Arabia, was totally destroyed. Two individuals aboard were injured. In another incident at Ft. Meade, Maryland in June 1993 during a training flight, a Chinook sustained over one-half million dollars in damage. The helicopters destroyed in Honduras and Saudi Arabia were valued at more than $10 million each (U.S. Department of Justice, 2000). Boeing suffered a huge monetary lost in addition to the bad publicity and reputation that these defective gears. Boeing has learned from these mistakes and has implemented processes to analyze the background checks for every subcontractor hired by the company. Ethics
Boeing’s business plans cannot happen without integrity (Boeing, 2010). The Boeing Company has a strict ethics policy that was created to protect the company and its employees. All employees at Boeing are required to obey all the information given in the employee Code of Conduct handbook. Boeing has a hotline, which employees can call to ask questions or report violations of policies. The Finance department has additional policies that must be followed for the accurate reporting of company financial records. It is essential for policies to be followed so the integrity of the company is not compromised. An example of bad ethics that influenced the company dramatically was when Boeing was in June of 2006. A legal issue involving an investigation over the improper acquisition of proprietary documents from a rival, the Lockheed Martin Corporation, which Boeing employees used to try to gain government rocket launching business (Leslie, 2006). In the end, Boeing’s financial chief was sentenced to four months in prison for ethics violations for offering a job to a former Air Force official and in the rocket launching case, Boeing was suspended for 20 months from Air Force rocket business. Boeing was estimated to have lost $1 billion in government contracts because of the suspension. Boeing chairman, W. James...
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