Free Boeing Case Study Essay Sample
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Boeing Company is an aerospace company that manufactures commercial jetliners, and defense, and security and space systems. It is thus the largest in the world as far as aerospace is concerned. It has its customers in not less than 90 countries thereby supporting airlines, U.S which is their top importer and allied customers from the government. They have various products and tailored services such as the satellites, military and commercial aircraft, weapons, launch systems, defense electronic systems, information and communication systems that are advanced as well as trainings and logistics that are performance based.
In their tradition, they have been seen as innovators and leaders of aerospace. Due to increased customers needs, the company has continued its expansion of their product lines and services so as to effectively and efficiently meet them and satisfy them. This is done through their capabilities that are very broad. These capabilities include their ability to create new members who are very efficient in the family of commercial airplane, having military platforms that are integrated, war fighter and defense systems through solutions that are network enabled. They also create solutions that are technologically advanced and have options in financing of customers that are so innovative. They have a work force that is diverse and talented as well as innovative. Such is not found anywhere else since here they have employees both in the US as well as in other 70 countries. Its organization is based into two units of business which are the Boeing defense, space and security and the Boeing commercial airplanes. The former functions in providing complete services to systems that are large-scale with an aim to boost platforms based on land, air and sea for military, customers that are commercial and governments globally. The latter which are the unit for commercial airplanes have their main function in the manufacture of commercial jetliners and airplanes for the last 70 years. Today they mainly manufacture 777, 767, 747 and 737 families of business jets for Boeing and airplanes. (Boeing, 2010)
Branding in business to business markets
Through the company's effective advertising, it is known as the largest and leading manufacture of airplanes that are for commercial. However, not many countries and commercial customers know that Boeing is also a leader in various other areas such as in space technology, communication systems and defense systems and aircraft. Through the company's advertising campaigns, it is able to close the gap between its true capacity of being an aerospace company that serves globally and how the customers perceive the company as.
The company has a logo which is a signature made graphically consisting of the symbol of Boeing and its logotype which is in letters that are stratotype. This logo is the trade mark of the company and it is registered. This logo is only used under permission from the company and when artworks from the company that are authorized are used. Permission is thus not allowed to anyone to use the logo in ways such as copying on publications, websites and other materials.
The ecosystem is faced by various challenges making this company to recognize them and thus commit itself towards improvement of the performance of the environment through its operations, services and products. They have achieved this through the pioneering of technologies that are new and that which will environmentally progress the services and the products. This products and services are thus developed, designed and built in a manner that is responsible for the environment. They are targeting towards the environment improvement through the implementation of very forceful targets in the existence of their products and their operations. It is committed to comply with the regulatory and has a very good record of how they have contributed to the improvement of the environment. In everything that Boeing Company does, thoughts are put in place in relation to the improvement of the environment through their employees who are enabled to create change and also learning form these employees.
It is a company that values the environment very well leading them to create their own policies towards the environment. Environmental stewardship is what they are committed to achieve in their operations. They comply with environmental laws in their operations, their policies and procedures and other applicable regulations. They also prevent the pollution of the environment through various ways that are strategized to reduce source of pollution such as energy conservation, recycling, and waste reduction. Together with their stakeholders, they work on activities that improve the environment. The company believes that the challenge in climate change is very serious and credible actions should be taken towards it.
Greenhouse gases emissions from the company is their main aim and worry and they aim at reducing it. It has thus developed flexible frame work that is put in place towards the reduction os these greenhouse emissions. This is because measures that are voluntary can never be enough. Each sector in the company has its appropriate action towards this reduction since the actions vary depending on the sector. It thus works with its stakeholders and their customers in the acceleration of the adoption of products and services that progress the environment as well as reducing co2 so as to reduce carbon intensity.
Competition in Boeing
The company receives its competition from airbus. This is the major auxiliary company of European Aeronautic Defense and Space Company. Airbus manufactures aircraft in many European nations. However, this company has encountered difficulties in its operations and has left Boeing on the top. This was caused by delays with A350 and A380 resulting to very high production cost, and cancellation of the orders. It is however the main producer of freight airlines making it to receive very many orders than Boeing which require that the plane has seats that are 100 and more. (Wikinvest Stock Summary), (Airbus)
Issues in Boeing Company
The company is faced with various issues. This is because the economy in such airline businesses is very sensitive than in other businesses. Changes in the equity market prices and revenue affect them very easily because of the economic indicators Travel are always reduced by customers when the conditions for travel become sub optional economically making the airlines to reduce production and capacity. All the economic indicators really affect this industry very much more than any other industry that exists. For this company, it is currently experiencing a season of slower travel and economically it is not doing that well due to the recovery slowdown.
Due to the reduction in employment in last year, the economy went down for the US and this means that for Boeing Company the travel were generally few even though fuel prices decreased as well as that there were prospects that in future the prices will be still low. Such a reduced demand means that Boeing will not make enough sales of their aircraft thus making it to be affected in terms of its productivity. (MarketWatch, 2010).
The company is also affected by the plans by the US air force and the investment of the $11 billion in a system of transformational communication satellite where by the company together with Northrop Grumman and Lockheed Martin they have done development work for the project. The air force thus despite the attempt from Boeing to do the project issued a request for proposals and this places the company in a very stiff competition for the contract. The air force is encouraging this competition so as to cut costs for the government. (Wolf, J., 2009)
The company largely depends on the US defense budget. This is because its integrated defense systems revenues have been found to be depending on the spending of the department of defense budget and on the ability of the company to win business that is new from the department. These defense businesses include the technology development for the united state secure border initiative that was given to the company, and the orders that it now has such as the Chinook and the apache helicopter programs and the program on combat systems in the future. This dependence means that if the budget of the department of defense varies due to the threat that is perceived to US, the company will be negatively affected., (LUV 2007)
The company is also still downsizing from the contract from US that they lost. This is the contract on GPS that the company lost to LMT in 2008 which made it to down size its assembly on satellite and business integration. The reward/ risk profile for competing for such contract was thus skewed and this is and will affect the operations of the company.
Due to the fixed cost development contract, Boeing Company is allocated a small amount of money for development of defense products and this money is not subject to any change thus putting much pressure on Boeing since more of its money is always spent in projects other than the agreed. This thus means if the department of defense in US adopts the fixed cost development contract, the company will severely suffer.
Boeing company is biggest in the world as far as aerospace is concerned. It has its customers in not less than 90 countries thereby supporting airlines, U.S which is their top importer and allied customers from the government. It has broad capability characterized by their ability to create new members who are very efficient in the family of commercial airplane, having military platforms that are integrated, war fighter and defense systems through solutions that are network enabled. They also create solutions that are technologically advanced and have options in financing of customers that are so innovative. Through the company's advertising campaigns, it is able to close the gap between its true capacity of being an aerospace company that serves globally and how the customers perceive the company as. Together with their stakeholders, they work on activities that improve the environment.
The company receives its competition from airbus which the main producer of freight airlines making it to receive very many orders than Boeing which require that the plane has seats that are 100 and more. The company is faced with various issues. The economy of this industry is very sensitive, with the economy indicators such as unemployment affecting it very much. The company is also affected by the plans by the US air force and the investment of the $11 billion in a system of transformational communication satellite where by the company together with Northrop Grumman and Lockheed Martin they have done development work for the project.
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