Boeing Company Case Study Example

Overview of the Boeing company

The Boeing Company is an American international conglomerate. It is known for manufacturing and exporting Rotorcraft, Airlines, telecommunication equipment, and missiles all over the world. Other than that the company also provides product support and leasing administrations. as per the financial year 2018, Boeing was among the largest Aerospace manufacturers across the world.

It was established by William Boeing in Washington on 15th July 1916. Boeing merged with McDonnell Douglas and formed the current company On 1st August 1997. Philip m Comit assumed the post of CEO of Boeing where Harry Stonecipher became the president and coo of Boeing.

Boeing got segmented into departments like the Boeing Defence Boeing Capital Boeing Commercial jet and Boeing Global Services. As of 2019, Boeing recorded sales of 73.6 million dollars. It is ranked among the top 150 organizations in the Fortune 500 List of 2020.

as per Fortune Magazine, Boeing ranks among The top 40 in the Fortune 500 list Of 2019.

mission of Boeing

• People cooperating as a unit to gain the recognition of a global leader in the Aerospace industry.
• it implies that the company thinks not just about producing mechanical products but also once to make a long-lasting relationship with the employees and stakeholders.

vision of Boeing

• Designed to inspire and encourage shared benefits and prove that Together they can meet the challenges that lie ahead of them.
• It implies that going as an entity plays the role of motivating its employees

Diversification strategy of Boeing

The product line should include all kinds of airplanes varying from short-range to extended and long-range including in the tail tank, Additional Boeing manufacturer’s exclusive jets with luxurious features that fall under the Boeing business jet. It is a highly equipped aircraft Made for private use. As of 2018 total number of aircraft manufactured by Boeing was 642, and that of 2017 was 763. Thus, Boeing designed 1375 aircraft in the past 2 years.

Apart from that British Airways also designed helicopter missiles and other technological machines used by the security and defense department.

Revenue generated from the product diversification assisted the company in times of financial crisis.

Organizational Structure of Boeing

Vertical structure of Boeing

• Boeing uses differentiation: The company has hierarchical levels where decisions are taken by the top-level supervisors of the company. It consists of several units that function independently, The units are dedicated for variable assignments, and include employees with versatile talents.
• Boeing using integration: The differentiated parts are put back together to form a unit. So that the work gets integrated to form the overall product.
• power or Authority trickles from Top to bottom
• CEO or COO CFO the top-level management.
• Then comes the vice president and President
• departmental managers

Organizational function of Boeing

Human Resource Department: To develop and execute strategies for the growth and expansion of business.

Marketing department: This unit focuses on strategic direction, revenue generation, increasing Market share, and brand equity.

Operations: It is responsible for Logistics, Quality assessment, purchasing raw materials, and evaluations.

Pestel analysis of Boeing

Political factors

Regulations and policies set out by the local governments and political parties can have a major impact on the civil airport. Moreover, the European and US Legislations can be one of the driving factors for buying new airlines and engines in the future. Political intervention has a major impact on the sales of airlines. China One of the largest Market Foregoing has gained political leverage in the US

The European transatlantic agreement gives a major concession to the 27 states in Europe.

Economical

The financial crisis and economic recession caused people to lower down expenses on leisure travel. reduction in the demand also caused the cancellation of tickets. The Global tourism trends Also create an impact on the sales of the Airlines.

Socio-economic

People love going on holidays in times of the festive season like Christmas and Easter. It causes the airlines to increase the supply of aircraft to meet the increasing demand. Low-cost Airlines make it easy for People from different economies to travel frequently, Increasing the demand for airlines.

Technological

Using carbon aggregates while manufacturing aircraft will make it more cost-effective. The higher the fuel efficiency the longer it will be able to travel. Technological advancement caused an increase in productivity and profitability for Boeing.

Environmental

Bike 2009 Boeing reduced 0.9% emission of fuel. In 2010 it reduced about 15% fuel emission in all commercial aircraft. Environmental concern and demand for fuel-efficient aircraft Are triggering going to reduce emissions and concentrate more on energy-efficient alternatives.

legal factors

WTO supports Boeing’s complaint against Airbus regarding the illegal subsidiaries. it would help the company to regain its standing in the commercial aircraft industry. The new transatlantic agreement provides more flexibility to the US and EU Airlines. It supports the passengers to fly at a cheap rate.

s w o t analysis

STRENGTH

• Vast portfolio of product
• presence of a Strong Supply chain
• strategic partnerships

WEAKNESS

• Over-dependence on supply chain
• Over-dependence on the US government
• Boeing 737 Max crashed over malfunction.

OPPORTUNITY

• Using the power of product innovation
• Increasing demand for satellites Technology
• Use of energy-efficient Technology

THREAT

• The threat posed by the covid-19 pandemic
• The threat posed by the increasing competition

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