Boeing Strategic Analysis Report

In: Business and Management

Submitted By thuongitb
Words 9300
Pages 38
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 also allows Boeing to share risks and focus on their relationship with marketing and suppliers. However there is a down side when Boeing decided to outsource. Engineers feel that outsourcing is not a great idea for the company (Hit, Ireland and Hoskisson: 52). One of the reasons why engineers are against outsourcing is because they feel that their job is at stake and the company has lost…...

Similar Documents

Conflict Report: Boeing Strike

...Conflict Assessment Report BC 465: Negotiation and Conflict Management Xxxxxx xxxxxxx Jones International University March 30, 2010 Abstract This paper is an assessment of a conflict that took place between The Boeing Company and one of its unions, The International Association of Machinist and Aerospace Workers in 2008. Conflict Assessment Report Profile The Boeing Company is the world's top aerospace company and the biggest manufacturer of commercial jetliners and military aircraft. The company designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launching vehicles and advancing information and communication systems, and providing military and commercial airline support services (Boeing, 2010). Boeing has been a leader in the aerospace industry for over 100 years (Boeing, 2010). The business manufactures products such as the 737, 747, and 777 airplanes that are used in commercial airline travel. Boeing is a major service provider to commercial airlines, NASA, operates the Space Shuttle and International Space Station, and the United States government and its defense agencies. Boeing is organized into two divisions. The first division is Boeing Commercial Airplanes, which is comprised of commercial jetliners that service the globe. Boeing Commercial Airplanes is approximately 75 percent of the world fleet currently in service (Boeing, 2010). The second division is Boeing Integrated Defense Systems. The......

Words: 5226 - Pages: 21

Boeing Financial Analysis

...Boeing Boeing (stock symbol BA) is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems (Morningstar 2013). I will be looking at whether or not this companies stock should be a bought or sold, with analysis of the Liquidity, Profitability, and Solvency of the company over a three year period 2009-2011. The company’s principle clients are the U.S. government and commercial airlines. Unlike Lockheed, one of its largest and closest competitors, Boeing is not as dependent on government spending. With the 1997 merger of Boeing and McDonnell Douglas, the company further enhanced its presence in the commercial aviation arena. Today, Boeing has nearly 12,000 commercial jetliners in service worldwide, which is roughly 75 percent of the world fleet. The company has more than 170,000 employees worldwide and reported revenues of nearly $69 billion in 2011 (Boeing Website 2013). Financially, the company is divided into two main segments: * Commercial Jetliners * Defense, space and security systems LIQUIDITY Demand in the airline industry is driven by the government’s military spending and the overall global economic climate, which affects airline traffic and demand for new commercial aircrafts. Despite uncertainties, Boeing finished 2011 with record revenues of $68.7 billion and net earnings equaled an all-time high at more than $4 billion. Boeing’s profitability depends on technical expertise and......

Words: 2530 - Pages: 11

Strategic Analysis

...ensuring the success of a company. This report gives a limelight on the extent to which strategy has contributed to the superiority of BMW in the UK automobile industry. In analysing this, the report will begin with an evaluation of BMW as a premium car manufacturer. The report then employed the use of PESTEL and Porters five forces to analyse the external car industry environment. The internal environment are analysed by use of value chain analysis. Bowman’s Strategy Clock is also explored in understanding the marketing strategy used by BMW Company. Finally, Resource/ competence framework has also been explored in understanding the key competencies and resource capabilities that has enabled the BMW to maintain market leadership position. In compiling this report, major sources of information used were journals, empirical literature and the internet. The findings of this report show that strategy has played a pivot point in BMW’s overall performance. Generally, the report shows that unstable political environment in the UK and the global market is greatly affecting the industry. Moreover, socio-cultural environment greatly affect the industry as consumers are becoming more environment conscious. This has especially reduced the sales volume of BMW. The UK government legal policies have also been addressed in the report. Advances in technology have also spurred competition in the industry thereby reducing the significance of branding. The report finds out that the value chain......

Words: 4996 - Pages: 20

Strategic Analysis Report

...Strategic Analysis Report Flux Consulting – Airline Division Queensland University of Technology MGB309 – Strategic Management Pei San Chew – 0 8000492 Tutor: Christophe Garonne (Tutorial 8) Word Count: 2160 1.0 Executive Summary The air transportation industry within Australia is highly competitive. However, there is solid evidence and a strong indication that Virgin Australia can seize power over the current market and outrun its competitors for its long-term survival. Virgin Australia should optimise opportunities and remain competitive by either strengthening its alliance with SIA or outsourcing to a specialist company in ground handling. The key challenge for the company is to create strategies that ensures effectiveness. The strategies will draw upon previous internal and external analysis conducted and focus on developing strategic alliances and strategic outsourcing. This report analyses the benefits and limitations of these potential strategies and provides practical recommendations to ensure long-term strategic sustainability. The results of the evaluation between the two strategies illustrate that the first strategy is more appropriate for Virgin to be sustainable in the long-term. There are several advantages that Virgin possesses which includes its strategic alliance’s strong position in the Asian market, and its ability to integrate newly planned flight routes. This means that Virgin is able to benefit from the strengths of its alliance.......

Words: 3801 - Pages: 16

Boeing 7e7 Analysis

...Background Boeing, a well-known aerospace company, has been facing a large decision regarding investing money in to producing a new aircraft. Boeing is split into two different primary segments: commercial airplanes and integrated defense systems or in other words, government contracts. Boeing makes commercial airplanes that can be used for both short and long-range flights, while also accepting government defense contracts. Boeing produces and sells six different airplanes to meet the needs of short- to long-range markets. Some of these aircrafts include the 717, 737, 747, 757, 767, and 777. For 2003, Boeing expects to deliver 280 aircraft and expects between 275 and 300 the following year. The expected revenues for 2003 are at $22 billion, which are down from $28 billion the previous year. B. History of the Industry Fundamentally, Boeing is a commercial-aircraft company. Unfortunately, as a part of this industry, they have started to see a significant downfall. They have lost the number one position to Airbus, their largest commercial competitors. Not only this, but also the current economic conditions look less than desirable for the commercial aircraft industry at the moment due to several reasons: • The SARS outbreak • Terrorist risks • Post 9-11 flying fears • War With all of this in mind, the decision to produce a new aircraft becomes even more questionable when analyzing how this company is to remain a dominant player in the future. C. Boeing......

Words: 1383 - Pages: 6


...Term Paper On Strategic Management Analysis for the ACME laboratories limited A company’s strategy is the game plan management is using to stake out a market position, conduct its operations, attract and please customers, compete successfully, and achieve organizational objectives. [pic] is the famous pharmaceutical company in Bangladesh and it has been continuously in the 2nd position among all national and multinational companies . The sales turnover of The ACME laboratories was more than US$ 60 million with about a large product line containing 272 products In this report, efforts have been made to analyze Acme’s strategy to maintain its leading position in the market and the difficulties it is facing while operating in the industry. This report starts with a company background and then proceeds with an analysis of the external and internal environment of the industry and the company, followed by its strategic practices at different levels, understanding the company mission, vision and objectives; it’s financial and marketing performance and current practices of various functional units. While analyzing the overall performance of Acme, few problems in the area of finance and operation have been found and suitable recommendations has also been suggested to address the problems. After these analyses, some new strategies are suggested in light of the future direction of the industry and the market to guide the company to maintain its......

Words: 12114 - Pages: 49

Analysis in Merger Boeing-Mcdonnell

...TO: Members of Review Board FROM: DATE: March 1st, 2014 SUBJECT: Boeing Merger This memo reports the findings of the accounting practice methods, business ethics and other production problems that happened around merger process with McDonnell-Douglas. Based on a comprehensive review, I find reasonable cause to believe that Boeing did not handle its cost overruns, production problems, and the merger with McDonnell-Douglas in a transparent and/or ethical manner. Details that support my findings are as follows: • Merger with McDonnell-Douglas Lack of transparency surrounded the merger of Boeing with McDonnell-Douglas. Executives of Boeing were utterly concerned in finalizing merger with reluctant McDonnell-Douglas’ officials that they act on it taking the questionable decision of concealing serious production and financial problems. • Production Problems Boeing was not prepared to handle increase in production resulted from the merger with McDonnell-Douglas, which cause serious production problems. Its production methods were not up-to-date to handle increase in production and new products, these problems were compounded even more with high overtime, part shortages and an overall low morale in its productions lines. • Financial Information Under special aerospace industry rules that are part of generally accepted accounting principles (GAAP), abnormal costs must be recognized in the quarter in which they are incurred, therefore the expenses incurred from the...

Words: 481 - Pages: 2

Financial Management - Analysis of Boeing & Airbus

...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 increase benefits for named......

Words: 4592 - Pages: 19

Strategic Report

...GRAINCORP STRATEGIC REPORT Develop and Implement Strategic Plans BSBMGT616A Hiran Fernando Contents About Graincorp 4 Graincrop’s mission 4 Key objectives of Graincorp 4 Manage earnings through the cycle and pay consistent dividends 4 Improve shareholders returns 4 Growth as an international agriculture business 5 Key goals 5 Key Performance Indicators 5 How Graincorp monitor KPI’s 6 Industry environment 6 Competition 6 Bargaining power of customers 6 Bargaining power of suppliers 7 New entrants 7 Threats of substitution 7 Internal Environment 7 Strategic resources of Graincorp 7 Tangible resources 9 Physical resources 9 Financial resources 9 Human resources 9 SWOT analysis of Graincrop 10 Threats 10 Competition 10 Climate Change 10 Land Degradation 11 Opportunities 11 Cash Available 11 Global Demand for Agricultural Products 11 External Environment 12 Political Factors 12 Social/Cultural Factors 12 Technological factors 12 Economical factors 13 Indicators of the overall macroeconomic condition and economic functioning include Gross domestic product, unemployment rates, and price indices. 13 Bibliography 13 About Graincorp Graincorp was formerly part of the New South Wales government’s Department of Agriculture. In 1916 Graincorp was established as a grain elevators board. In the mid-1980’s grain elevator’s board had changed to a grain handing authority and when the passing of the......

Words: 2577 - Pages: 11

Boeing Strategic Analysis

...| | | | ------------------------------------------------- Dynamics of Strategy * Evaluation of external business environment of Boeing * A critical assessment of the strategic resource capability (strategic fit) * Provide detailed recommendations after assessment of the feasibility, acceptability and suitability of Boeing * A detailed implementation plan NOTE: SEE APPENDICES FOR DETAILED ANALYSISFor Assignment or Dissertation Help, Please Contact: | Muhammad Sajid Saeed+44 141 4161015Email: tosajidsaeed@hotmail.comSkype ID: tosajidsaeed | | TABLE OF CONTENTS 1. INTRODUCTION------------------------------------------------------------------------------------- 03 2. VISION, MISSION, GOALS, AND OBJECTIVES ----------------------------------------------- 03 3. STRATEGIC ANALYSIS ----------------------------------------------------------------------------- 04 3.1 INTERNAL ANALYSIS -------------------------------------------------------------------- 04 3.1.1 RESOURCE-BASED VIEW ---------------------------------------------------- 04 3.1.2 VALUE CHAIN ANALYSIS ----------------------------------------------------- 06 3.1.3 FINANCIAL ANALYSIS --------------------------------------------------------- 07 3.2 EXTERNAL ANALYSIS -------------------------------------------------------------------- 08 3.2.1 PEST ANALYSIS ---------------------------------------------------------------- 08 3.2.2 PORTER’S FIVE FORCES......

Words: 7459 - Pages: 30

Boeing Strategic Analysis

...------------------------------------------------- INTRODUCTION This case discusses the history of Boeing and salient forces affecting the global aircraft industry, along with the key strategic issues driving Boeing’s competitive strategies. Boeing and Airbus dominate the global aircraft industry, but have very different visions of the future of commercial air travel. Consequently, the strategies they have devised to manage the competitive environment are disparate. The case provides a unique opportunity to explore these differences, how functional strategies support the overall competitive strategy, and the critical decisions now faced by both competitors. The objective of the case study is to evaluate current industry conditions and to make corrective recommendations to improve Boeing’s strategy. The shortcomings of the company’s functional strategies should also be examined in search of measures to improve organizational performance. * Compare the two competitor's strategies. Based on the industry environment, what conclusions can be drawn? * Since Boeing made its decision to pursue a product strategy based on the point-to-point airline business model, what new market conditions have developed? What impact are they likely to have on the company’s success? * Evaluate the pros and cons of Boeing's outsourcing strategy. Is there adequate support for the company's decision to "offload" parts production? * Consider the status of......

Words: 3175 - Pages: 13

Introduction to Management: Strategic Management Report – an External Environment Analysis

...Strategic Management Report – an External Environment Analysis Hsinyin Tan Strategic Management Report – an External Environment Analysis This essay will provide two aspects of environmental assessments undertaken on 800 Super Holdings Limited (800): a macro-environmental PESTEL analysis, and an industry analysis using Porter’s Five Forces of how 800 fairs in today’s competitive environment. 800 Super Holdings Limited 800 is a home grown company with humble beginnings in 1986 before its IPO offering and listing on the SGX-Catalist on 15 July 2011. An established integrated environmental solutions provider, 800’s business lies in waste management (WM) and recycling, cleaning and conservancy; and horticultural services. With its broad range of services, 800’s customer base is diverse and ranges from municipals to the industrial, institutional and commercial sectors (800 super, 2015). 800 has posted healthy profits year after year, with FY2014 revenue increasing 17.9% to S$115 million and net profit after tax improving 57.1% to $9.1 million (Chairman Statement, 2014); as of HY2015, revenue has already increased 95.4% to S$12.3 million, pushing current net profit to S$4.6 million (800 super, 2015). 800’s recent prominent deals include a Ministry of Home Affairs S$38.6 million three-year contract for cleaning and horticultural services in the East and West regions (shareinvestor, 2015). Winning two out of eight integrated public cleaning (IPC) seven-year contracts in......

Words: 1967 - Pages: 8

Stock Analysis: Boeing Company

...Stock Analysis: Boeing Company Ashutosh Kr.Sinha (DSI# d03252878) 730 Santana Drive Corona Del Mar, CA 92625 Email: (949) 719 2955 FI560 Securities Analysis Miriam Benard June 08, 2011 Abstract The purpose of this paper is to make buy or sell recommendation for the Boeing Company’s stock based on the technical analysis and fundamental analysis. The technical analysis consists of analysis of return on equity; the company’s projected future growth of earnings; an analysis of its required rate of return using the CAPM measurement; and the company’s intrinsic value using the discount valuation technique. The fundamental analysis consists of describing the competitive forces in the industry including the company’s relative advantages and disadvantages to its competitors and a discussion on ROE as the basis for growth. Based on the technical analysis, we find that Boeing’s stock is overpriced. Its intrinsic value is $13.39 in 2011, which is substantially less than its current price. But, our fundamental analysis shows that Boeing Company has not only greater earnings growth but also little more ability to grow than its competitor Lockheed Marin Corporation. The Boeing Company also has strong prospect for earnings growth in coming years. Based on the technical and fundamental analysis, we recommend hold. Background Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military......

Words: 2247 - Pages: 9

Format for Strategic Analysis Report

...Format for Strategic Analysis Report Strategic analysis of: _______________________________________ (case or company) EXTERNAL ENVIRONMENT MACRO ENVIRONMENT Political: • Regulation • Trade barriers • Change in tax laws/incentives • Other… Summary Legal: • Anti-trust • Equal pay/employment • Environmental protection • Health & Safety • Other… Summary Economic: • Interest Rate • Recession (aggregate demand) • Energy prices • Other… Summary MICRO ENVIRONMENT Industry – Competitive Analysis: Define the (primary) industry in which this firm competes Key segmentation variables: Identify the industry segment in which your firm competes Power of suppliers: Factors affecting relative bargaining power (high or low threats?) • What proportion of the value of our product(s) is provided by suppliers? Cost of Goods Sold / Sales • Price sensitivity Cost of purchases relative to total costs Profitability of suppliers vs. buyers Importance of the product to the quality of buyer’s quality • Bargaining Power Size and concentration of buyers relative to suppliers Buyer’s switching costs Buyer’s information Buyer’s ability to backward vertically integrate Risk of owning obsolescent technology Related experience in making the supplies Is owning non-complementary assets required? Summary ...

Words: 927 - Pages: 4

Report in Strategic follows: Total size of the market = 14,386 kg per monthEstimated share = 5-10%, with 5% selected.This represents sales of 719 kg of chutney per month with a potential value of $3,181 per month.When converted to daily production rates, assuming 20 working days per month, the maximum production is therefore 36 kg per day | This figure for daily production rate is very important. It is central to all subsequent calculations of production capacity and investment requirements (below) and every care should be taken to ensure that this information is as accurate as possible. It should be noted that in the calculations below, the scale of production is based on an anticipated share of the total market. In other situations, a more detailed analysis of market segments could be made (Section 2.8.1) and the planned market share could be based on one of those segments (e.g. low income groups in Tables 13 and 14). Competitors are very important to the success or failure of a new business and the entrepreneur should recognise that there are different types of competitor. Using the example of someone wishing to make fruit juices, it is helpful to think how the consumers might view the available products: for example when they are thirsty, they have a choice of hot drinks (tea, coffee etc.), cold soft drinks, such as milk, juices, squashes or finally alcoholic drinks. These are all general competitors, who are able to satisfy the consumers' thirst. Supposing the consumers choose cold......

Words: 3237 - Pages: 13

Mutou Black | Cialis Tadalafil (Paperback or Softback) | Welcome to our new home