In this essay, you will find an analysis of Boeing’s strategic plan, its business plan, and its objectives. It was founded in 1916 in Seattle, Washington. In just a little over one hundred years, Boeing became the largest aircraft manufacturer. You might be wondering how this was achieved? Here’s the answer.
Today world in the global markets is hyper-competitive. Modern companies have to develop competitive strategic plans to be successful. Undoubtedly, the Boeing Company is one of the most potential companies in the aerospace industry. So, it has one of the most efficient and competitive strategies. Despite the economic crisis, Boeing was able to hold its leading position. Besides, it served the needs of communities around the world.
Boeing Company’s History
The Boeing Company is one of the largest aircraft companies in the world. It builds both military and aerospace products. Since its establishment in 1917, the company gained a lot of recognition.
The company launched its first commercial aircraft 707 in 1958. Since then, Boeing Company continued leading in the whole sector for commercial aircraft manufacturing. Boeing built 2,461 engines before production ceased in April 1968.
The product line of the company is very broad, including airplanes, jets, and military aircraft. This diversity allowed the company to prosper in the aerospace industry as well. Boeing’s most prominent clients include but not limited to the US government, Emirates, Aeroflot, AirFrance, and AirChina.
In 2019, Boeing’s share price dropped significantly after several crashes of Boeing 737 MAX 8. All the airlines in the world grounded the plane. This and the coronavirus pandemic of 2019-20 severely impacted the company.
Boeing: Vision and Mission
Boeing is a quality and integrity oriented company. Devoted to serve global society and deliver world-class products, it follows its goals. Boeing’s mission statement reflects the core values of Boeing too. It reinstates the idea that people will be working together. Boeing will make sure it will connect with people to achieve its goals. It also states that it strives to be a global enterprise. Basically, it will be working with any type of regime and government to achieve its goals. Boeing’s customer-knowledge and engineering excellency are essential for realizing this vision.
Boeing’s vision statement has a very similar message too. The company aims to inspire its employees to work hard, reaffirming that they will be a part of the future. Boeing expresses that the employees will benefit from the success of the company.
Boeing’s Strengths & Weaknesses
Boeing’s reliable brand name and its excellent reputation are its greatest strengths. It resulted in a large number of significant contracts with the U.S. Navy.
Another strength of Boeing is its people. The company realizes the value that the managers and competent employees bring. It tries to invest in hiring additional staff to support new business opportunities worldwide. For instance, Boeing hired approximately 1,000 people in the first month of 2011. It was a way to prepare for possible growth and future production.
The third strength of Boeing is almost an impeccable quality of their products. The condition of the products was always emphasized and considered a competitive advantage.
To sum up the strengths, one thing is clear: Boeing’s strength outweighs its weaknesses. However, there are some weaknesses, as well. One of the principal ones is the high development cost needed to build a new aircraft. The amount of time and resources required to create it is enormous. It is much higher than anything most airlines are willing to pay for a plane.
Another weakness of the company is its asset/debt ratio. According to the latest data, Boeing’s assets outweigh its debt by 15%. This provides a challenge when it comes to quick cash if the company needs such.
Boeing Strategy Analysis
One of the most significant opportunities for Boeing lies in the development of new technologies. It concerns those that can help build new environmentally friendly products. Boeing invests a lot of resources to find an alternative fuel to power its airplanes. The competition to find “a green alternative” is intense. Whoever will be the global pioneer will get a substantial competitive advantage.
Boeing’s recent strategy focuses on closing the gap between the company’s perception and production. All over the world, Boeing is seen as a manufacturer of commercial airplanes. However, it also a manufacturer of the defense system and communications. It creates space technology and military aircraft as well.
There is another Boeing’s strategy, which the company can use. It can establish extensive research on aircraft manufacturing issues. Consider the oil industry crisis and the impending increase of federal taxes. With such problems, the company requires more energy-efficient products to reach its objectives in the future. Therefore, Boeing’s strategic plan includes these points.
The causes outside of the control can severely affect the Boeing company and its competitors. Terrorist attempts, natural disasters, and pandemics can mess with the companies’ plans.
For instance, the attacks on 9/11 caused a lot of people to fear flying. This issue decreased the demand for aircraft products. It took some time before people were comfortable flying again.
Another thread that exists is the amount of taxes companies in the airline industry have to pay. Additionally, government regulations on the airline industry are changing very quickly. As a result, airlines are forced to take much of the cost associated with the increase in taxes to maintain the ticket prices unchanged. Some of the airlines implemented drastic measures. Extending the life of planes, which otherwise should have been replaced, is one of them.
Boeing’s Goals & Objectives
The company attempts to find a more sustainable way of manufacturing its planes. It also tries to find a green alternative to traditional fuel. It dedicates a lot of effort and resources to the innovation of the products.
One of the most important goals for the company is to become an industry leader. It tries to do it by making products with outstanding quality. To realize this goal, the company needs a highly competitive engineering team. Creating efficient products can be possible only with a competent team. It can be achieved only through a well-established hiring process of engineers around the world. Having the best minds in the industry can allow the company to be ahead of others. This is how it will be able to build an aircraft of the future.
Boeing’s Strategic Plan: Path to Success
One of the things that Boeing should consider is an anticipated soaring of fuel prices. Most of the planes are manufactured for the commercial sector. Consequently, Boeing should renovate its energy-efficient products.
One of the ways in which Boeing could respond is by producing fuel-efficient planes. It will also allow cutting the operational prices of the products.
Boeing’s Management Plan
First of all, Boeing Company should establish a control management process. It will monitor the efficiency of the company’s decisions and innovations. In such a complicated business, performance evaluation and strategic management are essential. Without it, the company will fail to respond to issues quickly enough. It will prevent Boeing from taking a leadership position in the world.
This management body will be taking a look at the innovations in the short-run and the long-run. This examination will allow the company to detect products and steps that make the process less efficient. It also will identify which of the measures are the most reliable and effective. Boeing’s brand is so recognized that it should also create a space for customers’ and employees’ feedback. Without it, products cannot be corrected based on the customer’s needs.
The future of the company entirely relies on strategizing the production pattern. It should be able to build planes that will meet the needs of the global community. There is another way aircraft manufacturers could reduce the costs and meet the requirements. They can create planes that will fit more people. Even though aircraft manufacturers accomplished this goal in the past decade, there is no limit. Having larger planes allows airlines to have fewer planes in the air. It cuts the cost for maintenance and mainly reduces environmental effects.
The company should find a sustainable and environmentally friendly solution to a fuel problem. It will gain a significant competitive edge over its competitors.
Another advantage of having larger planes is that it will allow Boeing to connect with the airline industry. In the world affected by COVID-19, the oil crisis, and high taxation, it’s crucial. The company needs to adapt quickly to these new circumstances to remain profitable.
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