...Running head: DIVERSITY AND THE BOEING COMPANY The Boeing Company, the Struggle to the Top Introduction to the Boeing Company Boeing is one of the greatest aeronautical companies in the world and they have developed many innovative products and are using the most state of the art managerial, engineering and research known to man. “Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. As a major service provider to NASA, Boeing operates the Space Shuttle and International Space Station. The company also provides numerous military and commercial airline support services. Boeing has customers in more than 90 countries around the world and is one of the largest U.S. exporters in terms of sales.”(Boeing.com) “Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. Supporting these units is Boeing Capital Corporation, a global provider of financing solutions; the Shared Services Group, which provides a broad range of services to Boeing worldwide; and Boeing Engineering, Operations & Technology, which helps develop, acquire, apply and protect innovative technologies and processes.”(Boeing.com) I have worked for the Boeing Company’s Defense, Space &...
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...LONDON SCHOOL OF COMMERCE COLOMBO CAMPUS SRI LANKA MBA FOR EXECUTIVES Module Name: Financial Analysis and Management Student Name: Anuradha S. Illeperumaarachchi Module Lecturer: Mr. William Parrott Module Tutor: Mr. S. Skandakumar Date Submitted: 10/07/14 Total Word Count: 4193 Table of Contents 1.0 Introduction to the Report 3 2.0 Introduction to Airbus 3 3.0 Introduction to Boeing 5 4.0 Analysis of Financial Management 6 5.0 A comparative analysis of Airbus and Boeing 7 5.1 Airbus Group 7 5.2 Boeing 11 6.0 Examination of Key Stakeholders and Information Disclosure 14 6.1 Customers 15 6.2 Suppliers 16 6.3 Employees 16 6.4 Shareholders 17 7.0 Way Forward 18 8.0 References & Bibliography 19 1.0 Introduction to the Report This Consultant’s report has been compiled based on information gathered from the annual reports and financial statements of The Boeing Company and the Airbus Group (formerly EADS) for the year 2012. While analyzing the level of disclosure of both companies, this report aims to shed light on industry standards and critically examine whether the needs of key stakeholder groups have been sufficiently addressed in the chosen annual reports. Further suggestions for the improvement of these reports are also made in order to...
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...Boeing Company Prepared by Ivo Ivanov, group 1323 Fac. number: 12114158 I. Introduction In March 1910, William E. Boeing bought Heath's shipyard in Seattle on the Duwamish River, which later became his first airplane factory. Nowadays Boeing is the world's largest aerospace company and the leading manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. As a major service provider to NASA, Boeing is the prime contractor for the International Space Station. The company also provides numerous military and commercial airline support services. Boeing provides products and support services to customers I 150 countries and is one of the largest U.S. exporters in terms of sales. II . Company overview 1. Vision People working together as one global company for aerospace leadership Boeing- The future of flight. . 2. Mission To be the number one aerospace company in the world and among the premier industrial concerns in terms of quality, profitability and growth 3. Objectives * Continuous improvements in quality of products and processes: Boeing commitment to steady, long-term improvement in their products and processes is the cornerstone of their business strategy. * A highly skilled and motivated workforce – The most important resource is human resource:...
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...THE BOEING COMPANY Hoyan Yu 5/11/15 The Boeing Company Topic: Boeing products, technology, economies of scale, forces of competition and experience curve effect. Context: Boeing is one of the top industrialized companies of commercial aircrafts and other aircraft related products. The founding city was Seattle, Washington by William E Boeing. It was founded in 1916 and integrated on July 19th, 1934. Acquirement of defense in 1996 and space unit of Rockwell International expanded its market size. Later it merged with Mc Donnell Douglas to become the largest aerospace company. Boeing Company manufactures markets commercial aircrafts. It also provides associated support services to profit-making airlines across the world. It keenly engages in research and growth of armed weapon systems for defense purposes. In addition, the corporation broadened its expansion in information systems and space surveillance systems. Boeing faces a solid contest from Airbus Company, which is its leading rival. The healthy competition has enabled them to enjoy duopoly in developing innovative aircraft with new sophisticated skill. However, Boeing benefits a larger market share for having a wide range of products and services. For instance, it supplies defense system to the United States government and space systems to NASA. The current forces of competition have made Boeing focus deeply on research and development to cater the need of consumers. In order to survive, Boeing reduces running...
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...Summary 2 2. Reasons Boeing cancelled its development of the SuperJumbo 3 2.1. Boeing had an alternative to developing a new aircraft 3 2.2. Boeing already had market share 3 2.3. Boeings market analysis did not show sufficient demand 3 3. Strategic weaknesses in Airbus’s customer strategy 4 3.1. Strategic Analysis of Airbus 4 3.2. Analysing resources and capabilities of the organisation 5 3.3. Shaping the organisation through vision, mission and purpose 5 3.4. Customer strategy at Airbus 6 4. Is the Airbus strategy driven by customers? Or rather more by a sense of rivalry with Boeing? 6 5. Airbus’s demand estimates and implications for a customer driven strategy 7 6. Support for Airbus’s decision to proceed with the SuperJumbo 9 7. Conclusion 10 8. Bibliography 11 1. Executive Summary Boeing cancelled the development of the super jumbo after it had conducted a research. What informed this decision was the fact that there was no sufficient demand to justify the $7 billion investment. Instead of pursuing further the super jumbo development they decided to stretch their existing aircraft to cater for more passengers. They had no pressure to develop the super jumbo because they had the largest passenger aircratf at the time and had no competition at that segment of the market. This means that the segment of the market was monopolised by Boeing Airbus on the other hand wanted to penetrate the long range passenger aircraft market. Based on their...
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...Introduction : The case traces the history of Boeing, one of the two makers of commercial aircraft. At last in the year 2006 Boeing have recovered from its multi year setback in its competitive position with its competitor Airbus industries in the commercial aircraft industry. From mid 1990 Boeing had been losing in aircraft order and profit. Airbus booked more order than Boeing in its history in the year 1999 and repeated regularly until 2005. In the first half of 2006, Boeing booked 4 times more aircraft than Airbus. In 2005 Airbus repeatedly delayed in the delivery of its newest model A380, causing embarrassment, customer had also panned Airbus smallest model A350 at the drawing board stage and requiring rework on the model. Boeing two engine long haul 787 Dreamliner, a direct competitor to A380 and A350, had received rave reviews for its technological excellence, backed by firm orders from commercial airlines and aircraft leasing companies. Commercial airlines are the customer of Boeing and Airbus, had collectively losing in the early 2000. Some times the concern people were thinking of Boeing. Did the Boeing learn its lesson and the current good fortunes reflect in the long run. Could they able to ride on Airbus due to their missteps and misfortune? Boeing showing its excellence in design, solid order book position and their efficiency and production increased. The Company is almost synonymous with commercial air travel, due to the worldwide acceptance of its product...
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...Boeing |1 Boeing Strategic Analysis Report Professor Jiang Bus 189 Matt Fong Karolyn Vong Kenneth Wong Vivian Li Jae Woo Chae Joseph Eslao Boeing |2 Assessing the Industry Each year the strong economic growth of the U.S. has led to sustained high oil and fuel prices. Between 2003 and 2007, jet fuel expenses have increased dramatically by 15 percent to more than 30 percent of operating cost. Because of this, many airlines are demanding new aircraft that are fuel efficiency in order to help reduce their operational costs. The current trend of increasing fuel prices plays a key role in increasing the current demand for new aircraft or commercial airplanes that are more fuel-efficient. In addition, the rising fuel prices have taken a big effect on the economy. As fuel prices affect consumer goods and spending, leisure travel is expected to decrease, thus affecting the airline industry's bottom line. Furthermore, since the economy has gradually moved into a recession from the effects of rising fuel prices, many airlines that are struggling to stay out of bankruptcy, are looking for more ways to become cost effective. Thus, further fueling the demand for new commercial aircrafts to become more fuelefficient (2007 Annual Report). In order to save on costs so that Boeing can provide lower prices to its customers, Boeing and its competitor, Airbus, have both turned to outsourcing. Outsourcing has allowed Boeing to become more competitive. Furthermore...
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...Boeing |1 Boeing Strategic Analysis Report Professor Jiang Bus 189 Matt Fong Karolyn Vong Kenneth Wong Vivian Li Jae Woo Chae Joseph Eslao Boeing |2 Assessing the Industry Each year the strong economic growth of the U.S. has led to sustained high oil and fuel prices. Between 2003 and 2007, jet fuel expenses have increased dramatically by 15 percent to more than 30 percent of operating cost. Because of this, many airlines are demanding new aircraft that are fuel efficiency in order to help reduce their operational costs. The current trend of increasing fuel prices plays a key role in increasing the current demand for new aircraft or commercial airplanes that are more fuel-efficient. In addition, the rising fuel prices have taken a big effect on the economy. As fuel prices affect consumer goods and spending, leisure travel is expected to decrease, thus affecting the airline industry's bottom line. Furthermore, since the economy has gradually moved into a recession from the effects of rising fuel prices, many airlines that are struggling to stay out of bankruptcy, are looking for more ways to become cost effective. Thus, further fueling the demand for new commercial aircrafts to become more fuelefficient (2007 Annual Report). In order to save on costs so that Boeing can provide lower prices to its customers, Boeing and its competitor, Airbus, have both turned to outsourcing. Outsourcing has allowed Boeing to become more competitive. Furthermore, the option of outsourcing...
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...the 777; describes the management, and technological changes that Philip Condit made to the development style of the Boeing Company. Before Philip Condit took over the 777 program, Boeing had been making airplanes in the same fashion as it had been doing for 70 years prior. Mr. Condit saw the chance to bring Boeing into the 21st century not only with the new technology of computer aided drafting, but with modern management techniques as well. The 777 program proved to be the perfect testing ground for a companywide change in the way Boeing did its business. Philip Condit and the Development of the 777 In 1988; Boeing was looking to compete with the new jetliners that Airbus had released. The current CEO, Frank Shrontz, was planning on modifying the 767 to accommodate a longer range, an increase of passengers, and a payload to match what airbus was producing. To find out what United Airlines was looking for; Frank Shrontz sent Philip Condit (who at that time was the Executive Vice President of Boeing’s commercial airlines group) to talk with the Vice President of United Airlines; Frank Guyette. The meeting ended with the message that United Airlines did not want a modified aircraft. They wanted what the other airlines were asking for; a new and technologically advanced aircraft. Frank Shrontz agreed; and in 1989 announced the 777 project with Philip Condit in charge (Pearce, Robinson, 2003). The external environment in 1989 was certainly in Boeings favor over Airbus. The...
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...Building the Boeing 787 SUMMARY: Boeing decided to build a new jet aircraft known as the wide-bodied 787. Boeing had aspirations of the aircraft being an example of the future. “Designed to fly long-haul point-to-point routes, the 250-seat 787 is made largely out of composite materials, such as carbon fibers, rather than traditional materials such as aluminum.” Hill, 2011 Since, 80% of the aircraft was made out of composite materials, it allowed the plane to be 20% lighter than the average aircraft of similar size. The end result of that was to reduce and save jet fuel consumption. Upon building the aircraft, Boeing decided to outsource 70% of its manufactured parts. By outsourcing, Boeing felt they could work with some of the more efficient producers to help build the new aircraft. Boeing had a plan in place, they were to design, market, sell, and assemble the plane in their Everett plant in Washington State, after each manufacturer has delivered their specific pieces. Albeit, Boeing having a strategic plan in place, there were some minor issues that led to trouble for the aircraft company. Some of its manufacturers that were building their outsourced materials did not finish on time for Boeing to assemble and reveal their plane on schedule. When the outsourced materials were finished, the items did not fit nor meet the quality standards. Even though Boeing had issues with its outsourcing manufacturers, they still remain committed to the idea. Boeing, has learned...
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...Introduction Founded by William Boeing in Seattle, Washington, United States on July 15, 1916. Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defence, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defence systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing employs more than 165,000 people across the United States and in more than 65 countries. What Boeing Does Today • Design, assemble and support commercial jetliners – Boeing 7-series family of airplanes leads the industry – Commercial Aviation Services offers broad range of services to passenger and freight carriers • Design, assemble and support defence systems – World’s largest designer and manufacturer of military transport, tankers, fighters and rotorcraft – Global Services & Support provides services to government customers worldwide • Design and assemble satellites and launch vehicles – World’s largest provider of commercial and military satellites; major service provider to NASA and prime contractor for the International Space Station • Integrate and support large-scale systems, develop networking technology and network-centric solutions • Provide financing solutions focused...
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...FINANCIAL COMPARISON BETWEEN THE BOEING COMPANY AND LOCKHEED MARTIN Keith L. Hohl EMGT 452 Semester Project 14 December 1999 Table of Contents 1. Introduction/Study Objective 2. Boeing Financial Statement and Analysis 2.1. Background and Product Lines 2.2. Consolidated Balance and Income Statements 2.3. Divisional Financial Statements 2.4. Ratio and Trend Analysis 3. Lockheed Martin Financial Statement and Analysis 3.1. Background and Product Lines 3.2. Consolidated Balance and Income Statements 3.3. Divisional Financial Statements 3.4. Ratio and Trend Analysis 4. Financial Comparison between the Two Companies 4.1. Consolidated Comparisons 4.2. Military Aircraft and Space Divisions Comparisons 5. Summary/Conclusions 6. Bibliography 7. List of Tables 8. List of Figures List of Tables T-1: Consolidated Financial Balance Sheet-The Boeing Company T-2: Consolidated Income Statement-The Boeing Company T-3: Divisional Financial Summary-The Boeing Company T-4: Consolidated Financial Ratio Analysis-The Boeing Company T-5: Consolidated Financial Balance Sheet-Lockheed Martin T-6: Consolidated Income Statement- Lockheed Martin T-7: Divisional Financial Summary- Lockheed Martin T-8: Consolidated Financial Ratio Analysis- Lockheed Martin List of Figures F-1: Total Assets Divisional Trend Analysis-The Boeing Company F-2: Sales Divisional Trend Analysis-The Boeing Company F-3: Net Earnings Divisional...
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...Boeing Corporation Management Planning Boeing Corporation Management Planning Kelli Parnell MGT/330 Lisa McClain September 19, 2011 Introduction Management planning is an essential part of any organization, especially one as large and complex as Boeing Corporation. The company operates on an international level, providing products to consumers and clients worldwide. Boeing is known for producing high quality aircraft, for commercial and military use, as well as satellites and missiles. These products which are manufactured by Boeing are utilized primarily to carry passengers, cargo, and conduct military operations. Strict regulations are enforced for these aircrafts by the Federal Aviation Administration, or the FAA. Considering these factors, Boeing must conduct extensive management planning in order to operate a successful business, and is used at each level of the organization’s structure. The planning function of management is known as the process of setting objectives and goals for any corporation to achieve over a specific period of time. A successful plan will include tasks and activities that are required to be completed in order to reach these set goals. Effective planning will also incorporate variables, as well as unexpected occurrences. By preparing for the unexpected, a corporation will avoid ay chaos that can be associated with surprise problems or challenges. With...
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...Management Planning Paper Whitney Allen Axia College Management planning is an essential task for a company as massive and complicated as Boeing Corporation. The company operates on a global level and it’s provides products to customers around the world. They produce high end aircraft for both commercial and military organizations. The products manufactured are primarily needed to carry passengers, carry cargo, and perform military operations. Aircraft used for these purposes are strictly regulated due to safety and performance concerns. In the United States, Boeing aircraft are regulated by the Federal Aviation Administration, or FAA. With all these factors in mind, Boeing is required to conduct extensive planning in order to operate an efficient business. Management planning plays a large role in the success of the company and is used at all levels of the corporation’s structure. The planning function of management is the process of setting goal and objectives for an organization to achieve over a set period of time. A plan will include activities and tasks that need to be completed in order to reach the ultimate goal. Good plans will also take into account variables and unexpected occurrences. By planning for the unexpected an organization can avoid the chaos that is associated with unforeseen challenges or problems. In the case of Boeing, planning is vital within all of its major departments. The company remains efficient by setting goals within its engineering department...
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...Boeing 787 Comparative advantage, sometimes referred to as location-specific advantage, influences the decision of where to source and market. It is based on the lower cost of a factor (labor, for example) in one country relative to another, favoring industries that use this factor intensively (Kogut, 1985). In order to survive in the global airline industry, and compete with the internationally based Airbus, Boeing needed to shift its strategy and utilize the comparative advantage of lowering costs through the use of global partnerships and technology. Pioneered in 1917, Boeing defines itself as “the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training (Boeing, 2015). Although the “largest” manufacturer of commercial and defense aircrafts, Boeing had experienced some pitfalls, causing them to shift their strategy and branding and develop strategic and comparative advantages over time to improve their overall global success and maintain dominance in the industry. One of the most impactful events that helped to shape Boeings strategic and comparative advantage...
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