BOEING: BUSINESS POLICY ANALYSIS.
Boeing is the first world aeronautical company and the biggest manufacturer of civil and military planes. The company is structured around three big activities: First, the commercial aviation with the Boeing Commercial Airplanes; then, the space and the defense with the Boeing integrated Defense Systems; lastly,the financing with the Boeing Capital Corporation. With a clientele distributed on more of 145 counties, Boeing is first exporter of the United States. The headquarter is in Chicago and employs 160000 persons on more than 70 counties. Within the framework of a Strategic Marketing’s study, we shall analyze the situation of the Boeing’s company. In this way, we will use 5 different tools: the SWOTmatrix, the PORTER competitive analysis, the ANSOFF matrix and the Boston Consulting Group matrix.
The SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities and Threats of a company. The process is to identify the internal and external factors which are favorable and unfavorable to the company. It lets understand the situation andimagine some strategies. Firstly, we will analyze the Boeing internal environment that directly influences it. In this way, it will be used the “5’M”’ method to organize the presentation.
| STRENGHTS | WEAKNESSES |
MEN | - 24000 employees in the United States, high level of qualification- the R&D department gathers 4409 salaried employee | - Social troubles |
MONEY | - Good financial situation| - Penalties of delay |
MACHINERY | - Assistance and maintenance services- Protection of the environment- Little outsourcing | - Long and often delayed deliveries |
MATERIALS | - High level of technology | |
MARKET | - World leader- Situation of duopoly | |
6TH “M”: Image | - Brand awareness | -Old fashioned image |
7th “M”: Strategy | - Commercial strategy | - Technical strategy |This table shows the strengths and the weaknesses of Boeing’s company. The company collects superlatives.
How about the employees? They are the best in their fields. The company fidelizes them by offering high salaries (45000$ a year until 67$ a hour that is to say 127000$ a year). Boeing invests a lot in the Research and Development (4409 persons in the R&D department), that enable them toconstantly innovate and to stay at the “state of art”. However, Boeing must become aware of social troubles. Last September 2008, employees from production lines went on strikes.
How about the capital? The company registered good financial results. Although the financial crisis slowed the activity, the airlines’ demand is highly increasing. In this way, in 2007, the Boeing’s turnover was valuedet $64 billion. In 2005, the turnover reached $55 billion and the net profit about $2.6 billion. Moreover the share price reached the historical record of $84. The penalties required by the airlines’ customers due to the delivery delay blackben the financial results. It’s very expensive for the manufacturers (this is put Airbus into a difficult financial situation).
How about the machinery?Boeing has an know-how of excellence. The maintenance and assistance services are perfected to bring the best customers’ satisfaction. The Boeing’s machinery is also to act forward the saving of the environment. In this way, in September 2008, a work team set up to accelerate the development of new sustainable fuels for the aviation. Boeing also puts a sense of honour in the improvement of its planesenergy performance and in the reduction of the manufacturing environmental impact. Next point, the specificity of the company is also the control all the production, it has all the skills. From the perspective to adapt more efficiently to the market, Boeing outsources more and more. The major drawback is the subcontracted have some difficulties in following the rhythm imposed by Boeing. The...