Anands Boieng Corporations

8/10/2019 Anands Boieng Corporations

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MBA Programme Bharati Vidyapeeth University, Pune.

A

WINTER PR!E"T

N

ORGANIZATION STUDY ON BOEING.

Submitted to

B#ARATI VI$%APEET# UNIVER&IT%, PUNE.

INSTITUTE OF MANAGEMENT, KOLHAPUR.

For the Degree ofMASTER OF BUSINESS ADMINISTRATION

M.B.A

Submitted By

Anand Kadam

Amol Khabade

Kishor Bhandare

Manohar Ghadage

Sandip Dukare

Tanaji Amunekar

Youvraj Ingale.

Under the Guidance of

Dr. V. V. Maindari

M.!"#. P$.D.

BHARATI VIDYAPEETH, PUNE.

INSTITUTE OF MANAGEMENT, KOLHAPUR.

%&&'(%&&)

B.V. Institute o' Management


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BHARATI VIDYAPEETH*S INSTITUTE OF

MANAGEMENT

G+id*- !ri/i0a

This is to (erti'y that the pro)e(t entit*ed ORGANIZATION

STUDY ON BOEING. su+mitted +y Anand Kada#, A#"1 K$a2ad,

Ki-$"r B$andar, Man"$ar G$ada, Sandi3 D+4ar, Tana5i A#+n4ar and

Y"+6ra5 Ina1. in partia* 'u*'i**ment o' his or- 'or the aard o' Master o'

Business Administration su+mitted to Bharati Vidyapeeth University, Pune. has

+een (omp*eted under my supervision guidan(e.

To the +est o' my -no*edge +e*ie', the matter presented +y him is

origina* in nature has not +een (opied don 'rom any sour(es. A*so, this pro)e(t

has not +een su+mitted ear*ier 'or the aard o' any degree or dip*oma o' Bharati

Vidyapeeth University, Pune.

P*a(e/ 0o*hapur Dr. V. V. Maindari M.!"#, P$.D

$ate/ 7Pr"50 G+id8



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Boeing

Forever New Frontiers



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INDE9

INTRODU!ATION TO ORGANISATION



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RESER!H METHODOLOGY OF STUDY

FUN!TIONAL LEARNING

1INAN"IA2 $EPARTMENT

#UMAN RE&UR"E $EPARTMENT

PR$U"ATIN $EPARTMENT

MAR0ETIN3 $EPARTMENT

RE!OMANDATION

S:OT ANALYASIS

BIBLIOGRAPHY



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Inr"d+0i"n " "rani;ai"n


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&ee-ing other avenues 'or groth, Boeing produ(ed the Mode* F7A mai* p*ane

and re(eived a vita* (ontra(t ith the U.&. Posta* &ervi(e in 46@ to de*iver mai* +eteen

&an 1ran(is(o and "hi(ago. A ne su+sidiary named Boeing Air Transport 9BAT: as

'ormed to run the ne air*ine. BAT (arried 5,@44 pounds o' mai*, 4F6,7?5 pounds o'

eCpress pa(-ages, and 4,5? passengers 9there as room on the F7A to (arry passengers:

in its 'irst year o' operation. By 46@5, Boeing emp*oyed 577 individua*s, ma-ing the

(ompany one o' the *argest air(ra't manu'a(turers in the (ountry. The su((ess o'

passenger '*ight ith the F7A as a -ey mi*estone 'or the (ompany sin(e it inspired

Boeing to +ui*d their 'irst p*ane dedi(ated to passenger transport. Named the Mode* 57,

the p*ane made its 'irst '*ight on !u*y @, 46@6.

Antitrust *egis*ation ena(ted in 46F prevented air'rame manu'a(tures 'rom

oning mai*(arrying air*ines. $ue to the *egis*ation, the (ompany as 'or(ed to

reorganiDe BAT into three separate entities. $ue to the impa(t this *egis*ation ou*d have

on his (ompany, Wi**iam Boeing +e(ame very 'rustrated and ended up *eaving the

organiDation to raise thorough+red horses. "*aire Egtvedt, the ne president, deve*oped a

+usiness strategy that 'o(used on +ui*ding *arge (ommer(ia* airp*anes a*ongside ne

+om+ers. In a((ordan(e ith this ne strategy, Boeing deve*oped the GB4;, a *ong

range +om+er, at the reHuest o' the U.&. Army "orps. They a*so deve*oped the B4

+om+er, hi(h ou*d have a *arge impa(t during Wor*d War II.

n the (ommer(ia* 'ront, Boeing used their (ore (ompeten(y in aeronauti(s to

deve*op their popu*ar (ommer(ia* airp*anes. Borroing 'eatures 'rom their ne*y minted

+om+ers 9designprodu(t as a shared a(tivity at Boeing:, the (ompany deve*oped Mode*

4F, ni(-named


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part in the produ(tion o' the airp*anes at Boeing, hi*e men 'ought overseas.

Internationa* orders o' arp*anes had a signi'i(ant impa(t on revenues, ith the (ompany

+ui*ding airp*anes 'or (ountries su(h as 1ran(e and "anada in support o' the ar.

9Boeing/ A Brie' #istory, the War %ears:

Upon (on(*usion o' Wor*d War II, the mi*itary (an(e**ed outstanding +om+er

orders and the demand 'or mi*itary air(ra't p*ummeted. The (ompany had to shut don

some 'a(tories in order to survive, hi(h resu*ted in approCimate*y 7,777 or-ers *osing

their )o+s. The (ompany voed to hire or-ers +a(- on(e sa*es o' the &tato(ruiser too-

o''. Un'ortunate*y the p*ane did not +e(ome the 'inan(ia* +rea-through they ere hoping

'or, and the &trato(ruiser +e(ame one o' the *ast prope**er driven p*anes deve*oped +y the

(ompany.

A -ey output o' WWII as ind tunne* data 'ound in 3ermany, hi(h he*ped

Boeing move into the )et age. This in'ormation he*ped the +oard o' dire(tors de(ide, in

46;@, to (ommit 'unds to a prototype )et transport. This p*ane, named Mode* ?57 or


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The Nationa* Aeronauti(s and &pa(e Administration 9NA&A: a*so modi'ied the F

air(ra't 'or their needs ith to F4778s +e(oming &pa(e &hutt*e "arrier air(ra't.

In support o' !ohn 1. 0ennedy8s vision o' *anding an Ameri(an on the moon

+e'ore the end o' the de(ade, Boeing *oaned @,777 eCe(utives to NA&A to he*p (oordinate

a(tivities 'or the Apo**o pro)e(t. Boeing +ui*t numerous produ(ts in support o' the

initiative. ne produ(t as the 2unar r+iter, hi(h as the 'irst U.&. spa(e(ra't to or+it

the moon 9August 4F, 46??:. The 2unar Roving vehi(*e as deve*oped +y Boeing and

a**oed astronauts to eCp*ore the moon8s sur'a(e. The (ompany a*so +ui*t &4", hi(h

as the 'irst stage o' the &aturn *aun(h vehi(*es 9the *argest ro(-et +ooster in the United

&tates:. This as a very eC(iting time 'or the (ompany, hi(h (ou*d have +een a

'oreshadoing o' things to (ome.

Un'ortunate*y, in the ear*y part o' the 4678s, the e(onomy as in trou+*e. This

(om+ined ith the Apo**o pro)e(t inding don and the tough times the aviation

industry as eCperien(ing, (aused Boeing to +e in trou+*e again. The (ompany ent

eighteen months ithout any domesti( orders and as 'or(ed to (ut its or-'or(e 'rom

57,F77 to ,@77 in the &eatt*e mar-et a*one. The (ompany again 'ound itse*'

diversi'ying outside its (ore (ompeten(e o' aeronauti(s. Boeing (omputer servi(es so*d

(ommer(ia* (omputer produ(ts and sta''ed (omputertraining (enters. The (ompany +ui*t

a desa*iniDation p*ant in the Virgin Is*ands and voi(e s(ram+*ers 'or po*i(e departments.

They +ui*t ind tur+ines in the "o*um+ia River gorge and produ(ed *ightrai* vehi(*es 'or

Boston and &an 1ran(is(o.

By 465, the grips o' re(ession had eased, and the (ompany started getting ne

(ontra(ts again. ECamp*es o' mi*itary pro)e(ts ere the V@@ sprey ti*trotor, the

RA#s'?? "oman(he armed re(onnaissan(e he*i(opter, and the 1A@@ 'ighter. $uring

this time period, the (ompany a*so 'o(used on produ(ing 'aster, Huieter, and more 'ue*

e''i(ient (ommer(ia* airp*anes su(h as the ; and ?. The ; as up to 57L more'ue* e''i(ient than the o*der @ air*iners and (ou*d (arry up to @@5 passengers. The ?,

hi*e 'ue* e''i(ient, as a *arger p*ane and (ou*d (arry up to @67 passengers.

$uring the 46678s, Boeing deve*oped mi*itary pro)e(ts su(h as the B@ stea*th

+om+er, hi(h is -non as the or*d8s most advan(ed air(ra't and as the *argest



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mi*itary program underta-en at Boeing. The program emp*oyed approCimate*y 47,777

peop*e at its pea-. ther mi*itary pro)e(ts underta-en during this time period ere

upgrading the B;@ and 0"4; air(ra't. The (ompany, a*ong ith 2o(-heed Martin,

+ui*t the $ar-star UAV, hi(h as an unmanned, stea*thy, re(onnaissan(e p*ane 'or the

$epartment o' $e'ense 9$$:. The (ompany a*so deve*oped the G@AB !oint &tri-e

1ighter (on(ept air(ra't.

In support o' NA&A8s ongoing spa(e initiatives, Boeing deve*oped numerous

pro)e(ts su(h as the Inertia* Upper &tage 9IU&:, hi(h is an unpi*oted, upperstage

+ooster ro(-et. The (ompany a*so (onstru(ted &ea 2aun(h, hi(h is the or*d8s on*y

o(ean+ased *aun(h servi(es (ompany. Boeing as a*so se*e(ted as the prime (ontra(tor

'or the internationa* spa(e station and provided mission support 'or the spa(e station and

the eCpedition (re. As the prime (ontra(tor, it oversa thousands o' (ontra(tors around

the g*o+e and +ui*t a** the ma)or U.&. e*ements o' the spa(e station.

ver the *ast 'e years, Boeing again sought a strategy o' re*ated diversi'i(ation

+y underta-ing numerous mergers and a(Huisitions. In $e(em+er 466?, Boeing merged

ith Ro(-e** Internationa* "orporation8s aerospa(e and de'ense units. In August o'

466, a merger +eteen Boeing and M($onne** $oug*as "orporation too- p*a(e ith the

ne president and (hie' operating o''i(er o' Boeing (oming 'rom M($onne** $oug*as.

In !anuary @777, Boeing pur(hased #ughes E*e(troni(s "orporation8s spa(e and

(ommuni(ations +usiness. In &eptem+er @777, !eppesen &anderson In(, a *eading

provider o' aeronauti(a* (harts, as pur(hased +y Boeing. In (to+er @777, #a-er de

#avi**and, a manu'a(turer o' mi*itary (omponents, as a*so a(Huired.

Boeing a*so per'ormed some interna* reorganiDation. In Mar(h o' @774, the

(ompany announ(ed that it ou*d move its headHuarters to another (ity, and on

&eptem+er F, @774, its headHuarters moved to "hi(ago, I**inois. 2ast*y, on !u*y 47, @77@

the (ompany merged its spa(e, inte**igen(e, government, de'ense, and (ommuni(ations+usinesses into one unit.

"ompetitive Environment o' the Aerospa(e and $e'ense Industries



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1.2Key Industry Per!r"#n$e Metr%$s

Boeing is -non as a *eader in the industry. 1ortune magaDine ran-s Boeing as

@; on its 1ortune ;77 *ist and Boeing a*so appears on +oth the &P ;77 *ist, and the

$o !ones Industria*s *ist. The 1inan(ia* Times *ists Boeing as 47F on its 3*o+a* ;77

*ist.

The aerospa(e industry has had a di''i(u*t time in re(ent years, espe(ia**y sin(e

&eptem+er 44th. #oever, 3AMA reports that the @77F resu*ts are improving.

&hipments o' most types o' airp*anes in(reased, and R$ has resu*ted in severa* ne

mode*s, upgrades, and ne eHuipment. A*so, emerging mar-ets are +eginning to reHuire

aviation produ(ts. 9Annua* industry revie and @77; out*oo-, 3enera* Aviation

Manu'a(turers Asso(iation e+site: 3enera* aviation airp*ane +i**ings in(reased in the'irst ha*' o' @77; +y a+out 4L, and shipments in(reased +y a+out 5L. 9Annua*

industry revie and @77; out*oo-, 3enera* Aviation Manu'a(turers Asso(iation e+site:

A((ording to 3AMA President Pete Bun(e, the e(onomy has +een improving some,

industry innovation has gron, and things seem to +e in the +eginning stages o' re(overy.

9Bun(e, @77;, 3enera* Aviation Manu'a(turers Asso(iation e+site: In addition, 3AMA

notes that shipments o' pistonpoered airp*anes in(reased +y 76 units 'rom *ast year.

Tur+oprop shipments in(reased +y 4 airp*anes this year and +usiness )ets in(reased +y

5 units this year.

In addition, 'edera* taC *as 'or R$ have (hanged. In Novem+er @77;, the U.&.

&enate o''i(ia**y re(ogniDed the need 'or R$ in the industry +y passing a +i** ith taC

(redits hi(h en(ourage R$ in aerospa(e and de'ense. These 4@L (redits are very

+ene'i(ia* to the industry. &in(e aerospa(e (ompanies emp*oy a+out ;L o' the Ameri(an

manu'a(turing or-'or(e, and ;L o' R$ (redits go to ages, this taC (redit is

eCpe(ted to +e very positive 'or Ameri(an or-ers.

In spite o' these positive trends, many eCperts thin- that the industry i** sti**

eCperien(e tough times. Whi*e @77; is *oo-ing +etter than re(ent years, severa* industry

ana*ysts predi(t that there i** *i-e*y +e 'eer orders 'or p*anes in @77?.



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G"6rn#n S+2-idi- and :"r4r Sri4-

ne o' the main issues a''e(ting Boeing is the disagreement +eteen Boeing andAir+us over the government su+sidies that have +een granted to Air+us. Boeing vies

su(h su+sidies as un'air. 9Irin and Pav(ni-: In addition, there has +een ongoing

*itigation through the Wor*d Trade rganiDation attempting to 'urther (ur+ the su+sidies

granted to Air+us. 1urther, in &eptem+er @77;, the Boeing ma(hinists ent on stri-e.

This stri-e threatened the industry and Boeing, in parti(u*ar. #oever, the stri-e as

reso*ved rather Hui(-*y a dea* as rea(hed ithin three ee-s.


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C?

Ma5"r air31an #"di/i0ai"n- ?>

Air/ra# and nin 3ar- %@)

F1i$ 0r rainin ?CAir3"r and r"+ -r6i0- '%%

%& =ar "a1 %'%

Many o' these servi(es may o''er Boeing and other aerospa(e (ompanies the

opportunity to improve their revenues and in(ome.



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Inrna1 Ana1=-i- ( Va1+ !$ain Ana1=-i-

In&!und '!(%st%$s

There are nine main (ategories o' produ(ts and servi(es that Boeing pur(hases,

ith everything 'rom *avatories to avioni(s to surviva* -its 9see AppendiC 4:. &in(e they

are the +iggest aerospa(e (ompany, Boeing +uys enormous amounts o' produ(ts and

servi(es 'rom its various supp*iers. Boeing 'reHuent*y see-s ne supp*iers ho (an o''er

the greatest va*ue and +est so*utions. Boeing8s strategy o' produ(t diversi'i(ation is +ased

on maintaining the diversity o' supp*iers, supporting a num+er o' *o(a*, state and 'edera*

p*ans, and gaining (erti'i(ations.

Boeing 'avora+*y supports and va*ues mem+ership in a 'e organiDations su(h as

The &BA 9U.&. &ma** Business Administration: +usiness deve*opment program, Nationa*

Minority &upp*ier $eve*opment "oun(i* 9NM&$":, and WomenOs Business Enterprise

Nationa* "oun(i* 9WBEN":.

Operations

Boeing operates in F5 Ameri(an &tates and ? (ountries in(*uding Austra*ia,

"hina, 3ermany, Ita*y, !apan, 0orea, Russia, and &pain. Boeing8s operations are divided

into 'our ma)or +usiness units/ Boeing "ommer(ia* Airp*anes, Boeing Integrated $e'ense

&ystems, Boeing "apita* "orporation, and "onneCion +y Boeing 9see 1igure 4:.



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Resear(h in (ommon par*an(e re'ers to a sear(h 'or -no*edge. Resear(h (an +e de'ined,

as . FU!TIONAL LEARNING



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>.< Finan0 D3. "/ !"#3an=

1inan(ia* Per'orman(e

&a*es at Boeing have +een dire(t*y hindered +y *osing (ustomers to Air+us, *osing

or the (an(e*ing o' government (ontra(ts, and a strugg*ing air*ine industry. Revenue

rea(hed its *oest *eve* in @77 hi(h 'e** J47 +i**ion +e*o @7748s ?7 +i**ion high, and

net in(ome 'e** 'rom )ust under J +i**ion to J4 +i**ion 9see 1igures 5 6:. &in(e @77,

Boeing has seen in(reased sa*es and net in(ome due in part to restru(turing e''orts +y

management, +etter e(onomi( (onditions, and ne orders 'rom groing air*ines in "hina

and India.

1igure 5

Boeing Revenue 1994 - 2004

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Revenue

in

Billions



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Boeing "apita* "orporation

Boeing "apita* "orporation8s mission is to support the other Boeing +usiness

units +y organiDing, stru(turing, and providing 'inan(ing in order to 'a(i*itate the sa*e and

de*ivery o' Boeing produ(ts su(h as (ommer(ia* and mi*itary air(ra't, sate**ites, and

*aun(h vehi(*es. Boeing "apita* "orporation has a port'o*io o' approCimate*y J47 +i**ion

and o''ers 'inan(ia* strength and g*o+a* rea(h, detai*ed in'ormation a+out Boeing

(ustomers and eHuipment, and the pro'i(ien(y o' its 'inan(ia* pro'essiona*s.

!"nni"n 2= B"in

"onneCion +y Boeing is a mo+i*e in'ormation servi(es provider 'o(used on

enhan(ing (ommuni(ation and in'ormation 'or peop*e on the move. This servi(e o''ers

high speed and to ay (onne(tions 'or the Internet 'or airp*ane and other mo+i*e +ases.

"onneCion +y Boeing serves a variety o' (ustomers in(*uding/ (ommer(ia* air(ra't

operators and passengers, eCe(utive air(ra't 9operators o' private )ets and government

eCe(utive )ets:, and maritime (ustomers. Using *aptops or persona* digita* assistants

9P$As:, (ustomers (an gain a((ess to the Internet, emai*, and (ompany intranets and (an

send and re(eive atta(hments and vie entertainment at a high speed. "ommer(ia*

operators i** 'ind that "onneCion +y BoeingOs +andidth i** enhan(e operationa*

e''i(ien(ies and a**o them to o''er +etter (ustomer servi(e. Air*ines su(h as 2u'thansa,

!apan Air*ines, &(andinavian Air*ines &ystem 9&A&:, ANA, &ingapore Air*ines, "hina

Air*ines, 0orean Air*ines, Asiana, and E* A* are o''ering "onneCion today on ma)or

internationa* routes. The pioneering servi(e is avai*a+*e to eCe(utives in the United

&tates, and "onneCion +y Boeing p*ans to o''er a (onne(tivity so*ution 'or the marine

mar-et, ena+*ing ships to a((ess its g*o+a* netor- and to improve (ommuni(ation hi*e

at sea.



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&ervi(e

In addition to the num+er o' servi(es des(ri+ed a+ove, Boeing provides additiona*asso(iated produ(ts and servi(es su(h as Airport Te(hno*ogy, Airport Noise Regu*ations,

Boeing Air(ra't Trading, Boeing te(hno*ogy servi(es, Boeing Trave* management,

Energy &ystems, 3&A Pro'essiona* &ervi(es, My Boeing 1*eet, and &o*id &tate

E*e(troni(s $eve*opment. 3&A Pro'essiona* servi(es in(*ude various Engineering

&ervi(es 9e*e(tri(a*, me(hani(a* and "ivi*: and In'ormation Te(hno*ogy &ervi(es

9"omputer &ystems ana*ysis, App*i(ation Engineering and $eve*opment, Netor-

Engineering: and mu(h more.

.@ #uman Resour(es

Boeing8s strategy is 'o(used on (ontinuous improvement o' its primary +usinesses

and pro(esses. To ma-e it possi+*e 'or its emp*oyees to dis(over ne edges, the (ompany

strives to remain innovative. Boeing emp*oyees have a (han(e to +ring ideas to the

mar-etp*a(e and to get deep*y invo*ved in the groth pro(ess o' the (ompany. Boeing

esta+*ished a program named the "hairman Innovative Initiative, hi(h gives ne

opportunities to innovate +ased on an emp*oyee8s ideas. The (ompany supports any

va*ua+*e ideas on(e they are approved. Motivation and empoerment o' its emp*oyees

are main approa(hes in the #uman Resour(e Management o' Boeing and are (riti(a*

'a(tors 'or 'uture (ompany su((ess. Another important va*ue at Boeing is


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>.> Pr"d+0i"n d3.

Boeing Te(hno*ogy provides support 'or (ompany +usiness units and groth +y

ensuring that peop*e, te(hno*ogies, and pro(esses are de*ivered on time and in the proper

*o(ation. This support is a((omp*ished +y Boeing Te(hno*ogy8s primary organiDationa*

groups Phantom Wor-s, Inte**e(tua* Property Business, and In'ormation Te(hno*ogy

its "hairmanOs Innovation and Te(hni(a* EC(e**en(e initiatives, and its *eadership ro*e

in the Engineering, perations, Kua*ity, and In'ormation Te(hno*ogy pro(ess (oun(i*s.

The a(tivities o' Boeing Te(hno*ogy he*p drive the 'uture su((ess o' Boeing +y inning

strategi( ne programs and providing te(hno*ogy and pro(ess so*utions, thus ensuring

that Boeing is a g*o+a* (ompany, ensuring the prote(tion o' the (ompany8s inte**e(tua*

(apita*, and a**oing 'or a 'o(us on innovation.

Boeing (ommits a set o' (ore va*ues, hi(h a*so indi(ates the (ompany8s goa*s/

2eadership Q to +e the or*dide *eader in every aspe(t o' their +usiness, to

deve*op *eadership s-i**s in management per'orman(e, in design, and in 'inan(ia*

resu*ts

Integrity Q to pra(ti(e the highest ethi(a* standards and to ta-e persona*

responsi+i*ity 'or its on a(tions

Kua*ity Q to o''er (ontinuous Hua*ity improvement in order to provide emp*oyee,

(ustomer, and (ommunity satis'a(tion

"ustomer &atis'a(tion

A diverse and invo*ved team Q to re(ogniDe that peop*e are the main (ompetitive

advantage, to va*ue the s-i**s and strengths o' a diverse team, and to a**oemp*oyee invo*vement in the de(isionma-ing pro(ess

3ood "orporate "itiDenship



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22/28



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Another re(ommendation is 'or Boeing to modi'y its eCisting produ(t to (ater to

*o (ost air*ines. The 'astest groing mar-et segment in the air*ine industry is the *o

(ost, no 'ri**s (arriers. Boeing shou*d o''er pa(-ages spe(i'i(a**y designed 'or these

(arriers that o''er a** the 'ue* e''i(ien(y and sa'ety 'eatures o' the origina* mode*s, +ut

ithout a** the


24/28


p*anes resu*ted in a @7L redu(tion in emissions as e**. As engines advan(ed,

government regu*ations a**oed airp*anes to (ross the o(ean ith to engines instead o'

'our. The 5 is designed to '*y *ong range 94;,777 -m:and (ompete dire(t*y ith Air+us8

*ong range '*eet. The 5 is designed in three di''erent mode*s, ea(h ith di''erent seating

(apa(ity, range, and strengths to meet the needs o' ea(h individua* (arrier.

? S:OT ana1=-i-

In order to identi'y the (ompany8s sustaina+*e (ompetitive advantage over its

main (ompetitors, e (an app*y the &WT ana*ysis te(hniHue.

?.< Srn$-

Boeing8s a+i*ity to generate 'ree (ash '*o has +een a (riti(a* 'a(tor during the

*atest e(onomi( donturn.

Boeing hires high*y s-i**ed emp*oyees, ho +ring va*ue to the (ompany and

represent the inte**e(tua* poer o' Boeing.

The (ompany o''ers a ide range o' training and retraining programs to maintain

the (ontinuous improvement pro(ess.

The so*id reputation and +rand re(ognition or*dide are great sour(es o'

(ompetitive advantage. Boeing has a *ong tradition o' aerospa(e *eadership and innovation. The (ompany

invests massive 'unds in R$ named Phantom Wor-s. Phantom Wor-s8 engineers

deve*op advan(ed te(hno*ogies, pro(esses, and systems 'or air(ra't and spa(e(ra't

to +e sa'er, more (apa+*e, and re*ia+*e. They a*so dis(over the ays to save time

and (osts needed 'or the design, produ(tion, and maintenan(e o' their produ(ts.

Boeing is a diversi'ied (ompany engaged in a num+er o' industries su(h as

(ommer(ia* air(ra't, Integrated $e'ense &ystem 9I$&:, Boeing "apita*

"orporation 9B"":, and "onneCion +y Boeing, 9Boeing e+site, +oeing.(om,

%ahoo 1inan(e, 'inan(e.yahoo.(om:. The (ompany (ontinues to eCpand its

produ(t *ine and servi(es to meet emerging (ustomer needs. The +road range o'

(apa+i*ities in(*udes (reating ne, more e''i(ient mem+ers o' its (ommer(ia*



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airp*ane 'ami*y, integrating mi*itary p*at'orms and de'ense systems through

netor-(entri( operations, and (reating advan(ed te(hno*ogy so*utions.

The ne revo*utionary produ(t, the Boeing5, ta-es Boeing into the ne

mi**ennium +y giving air*ines and passengers a +etter, sa'er, and more

(om'orta+*e air(ra't ith *ess time in the air.

:a4n---

Whi*e Boeing is trimming its or-'or(e to +e a more e''i(ient (ompany, it may

a*so put at ris- its a+i*ity to attra(t and maintain s-i**ed or-ers in the 'uture

hen the mar-et (onditions improve.

The +ureau(ra(y and hierar(hi(a*, semiauto(rati( management sty*e is the resu*t

o' its mi*itary heritage, hi(h resu*ts in dise(onomies o' s(a*e.

The unethi(a* +ehavior o' the (ompany8s top managers resu*ted in the 'iring o'

"1 Mi(hae* &ears 'or de(*ared unethi(a* (ondu(t, and the resignation o' "E

Phi* "ondit a'ter ethi(s s(anda*s, hi(h resu*ts in *a(- o' strategi( dire(tion.

Boeing *a(-s e''e(tive verti(a* and horiDonta* (ommuni(ations ithin the

(ompany and has a great dea* o' redundant in'ormation. As a resu*t, emp*oyees

'ee* a*ienated 'rom management.



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O33"r+nii-

There are many areas in hi(h Boeing has a pro'usion o' opportunities. The

(ompany has an e(onomi( and te(hni(a* advantage over the ma)ority o' its (ompetitors,

hi(h may ena+*e it to eCtend its industria* R$. The (ompany may eCpand its +usiness

in +oth nationa* and g*o+a* mar-ets ithout 'a(ing mu(h 'inan(ia* di''i(u*ty due to its

inherent 'ree (ash '*o. "urrent*y, the (ompany has a great opportunity to in(rease its

mar-et share 'rom (on(entrating on rapid*y groing mar-ets, su(h as &outheast Asia. To

he*p 'a(i*itate this transition, Boeing is (urrent*y a(tive in Asian aerospa(e industry

organiDations and the regionOs armed 'or(es and ma)or air*ines. 1rom a manu'a(turing

)oint venture in Ma*aysia to (ommer(ia* airp*ane sa*es in Thai*and and Vietnam and

sate**ite sa*es in Indonesia, Boeing8s +usiness interests in the region are signi'i(ant and(onstant*y groing. The strength o' the region, as e** as its inherent groth prospe(ts,

i** provide Boeing ith an eC(e**ent opportunity to eCpand its g*o+a*iDation initiatives

and en)oy great su((ess.

pportunities a*so eCist 'or Boeing is its a**ian(e ith Northrop 3rumman to

pursue the United &tates Army8s (ommon modu*ar missi*e program. I' su((ess'u*, this

program i** open up many doors 'or Boeing. In the Northrop 3rumman press re*ease,

the se(tor vi(e president 'or Northrop 3rummanOs Integrated &ystems, 3ary Ervin, says/


27/28


T$ra-

Whi*e Boeing has many opportunities, it a*so 'a(es a num+er o' threats and

(ha**enges. Boeing sponsored a te*ephone intervie survey in the United &tates a'ter

&eptem+er 44th. The survey demonstrated that Ameri(ans have not *ost their (on'iden(e

'or '*ying, and (ompared ith a** o' its (ompetitors, BoeingOs (redit ratings ere the

strongest in the aerospa(e industry. #oever, in rea*ity, the terrorist atta(-s in @774

negative*y a''e(ted Boeing and (aused a threat to its 'uture p*ans. Thus, the (ompany

must reeva*uate its strategy to remain (ompetitive in the 'uture.

As the or*d8s *eading (ompanies evo*ve more and more into a g*o+a*

mar-etp*a(e, the U.&. aerospa(e industry is in(reasing*y threatened +y (ompetition 'rom

European Air+us. The ne Air+us mode* A57 (ou*d redu(e the mar-et share o' the F+y up to 4F per(ent in the *ong range ide+ody mar-et segment 9depending upon the

dis(ounts o''ered on the A57:. 91eenstra, Nationa* +ureau o' E(onomi( Resear(h:

Air+us has a(hieved a*most ?7L per(ent or*d mar-et share in (ommer(ia* air(ra't

de*iveries and orders and there'ore overtoo- Boeing to +e(ome the or*d8s +estse**ing

air(ra't ma-er. Air+us and Boeing are the or*d mar-et 'or (ommer(ia* )ets. 1or Boeing

to gro, it i** need to (apture a greater mar-et share. Another serious threat 'or Boeing

may +e the 'ai*ure o' its ne Boeing 5 mode*. The trend toard no'ri**s air*ines and

ground trave* main*y due to the danger o' terrorist atta(-s may (ause a de(rease in sa*es

'or the ho*e industry and a *oss o' mar-et share 'or Boeing.

"onsidera+*e (hanges in the or*d e(onomy su(h as seHuent variations in

disposa+*e in(ome and the 'reHuen(y o' air trave*, oi* pri(es, and (hanges in interest rates

and (urren(y va*ue may signi'i(ant*y a''e(t Boeing8s position in the mar-et. The threat

o' *osing its strong reputation +e(ause o' potentia* airp*ane (rashes may a*so signi'i(ant*y

ea-en Boeing8s position. 1or eCamp*e, on &eptem+er @4, @77; Air+us su''ered negative

pu+*i(ity hen !et +*ue8s Air+us A@7 air(ra't (ou*d not *and due to the hee*s +eing

stu(- in the sideays position. A** ended e**, +ut Air+us i** have to or- hard to

regain its reputation in sa'ety standards and Hua*ity 91*o((us:.



28/28


BIBLIG!A"#Y

Business India $%ebruar& '() '**(+

Boeing Annual !epor,. '**(

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///.boeingmedia.0om

///.1ligh,in,erna,inal.0om.
http://www.boeing.com/http://www.airbus.com/http://www.boeingmedia.com/http://www.flightinternatinal.com/http://www.boeing.com/http://www.airbus.com/http://www.boeingmedia.com/http://www.flightinternatinal.com/

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