...for its oversight, and IT did not seem to be part of the council. Boeing did not seem to have strategic focus and leadership. • Boeing realized that they could no longer focus on airplane manufacturing to be successful • Boeing realize that they were dependent on a cyclical airline market • Boeing shareholders were it executive leadership, shareholders, employees, customers, suppliers and partners, secondary stakeholders were airline customers • in 1994 Boeing's earnings shrank by nearly half then they laid off 9300 employees. • In 1997 Boeing lost the 178 million, 90% drop in profits due to production delays. • 1999 Airbus outsold Boeing for the first time. Problems • Boeing had change management problems incurred from the M&As, and did not effectively integrate business practices/processes to produce cohesive collaboration, communication, processes, integrated networks from all the acquisitions. “the biggest challenges and risks we face are cultural and organizational – not technical” o “But there was no systematic, holistic view of how to add them together. Our Task is to take these building blocks and allow them to work together to further increase efficiency…Chris Kettering, 2005” o While the main concern of Scott Carson was to break down the silos of communication among the different business units o Boeing did not allow for enough time for proper re-organization strategy (reviewing the enabled environment to evaluate existing products/services, and after 2 months...
Words: 1725 - Pages: 7
...1. How does e-Enabled create value for Boeing? In the “Essentials of information systems for managers”, Piccoli does not only define value creation as the genesis of worthwhile things that did not exist before (Pic, 214), but also explains the two major ways with which added value could be created (Pic, 222): either increasing customer willingness to pay by doing something of value for customers, or decreasing supplier opportunity cost by working with the firms’ suppliers on providing the needed resources for less money. The former (CWP) is defined as the maximum amount the customers are ready to spend on the firm’s product or service (Pic, 215), whereas the latter (SOC) is defined as the minimum amount of money the suppliers are willing to accept before providing the needed resources (Pic, 215). As far as Boeing is concerned, the new e-Enabled strategy focused on increasing the customer willingness to pay, and I quote from the case (LYN, 1): “Boeing unveiled a new strategy that executives believed would help its airline customers improve efficiency and profitability and also differentiate its products in the market place.” If we analyze this quoted statement, we will see that the way Boeing intended its customers to create added value from e-Enabled is twofold: First, from e-Enabled’s potential to reduce costs complexity, provide real-time situational awareness for both flight crews and airline operations centers, improve operational efficiency, enhance the travel experience...
Words: 1796 - Pages: 8
...Case 2 – Boeing's e-Enabled Advantage 1. What challenges and opportunities did Boeing face in the late 1990s? * Challenges * Production inefficiencies * Mature market * Needed to find ways to generate revenue other than airplane sales * Economic downturn and contingency plans * Competition from Airbus that was being subsidized by the govt. * Opportunities * Acquisition of Rockwell and merger with McDonnell Douglas. * Lean manufacturing helped Boeing “greatly reduced out-of-sequence work and parts shortages.” * New technology on 737 that was too advanced for customers. 2. What is the e-Enabled Advantage? How did it link to the company’s strategy? * e-Enabled Advantage is an IT service that Boeing can place into aircrafts that will help airlines collect and analyze data surrounding the aircraft’s maintenance, flight operations, and passenger needs. * Designed to “help airlines cut costs, improve dispatch reliability, reduce delays and cancellations, improve passenger service, enhance aviation security, and provide real-time situational awareness…” (Pg. 199). * Service, not a tangible product. (Pg. 199). * Allows the aircraft to be integrated with airline ground systems. * “…it’s a factory that is ‘unplugged’ from the airline while flying…depriving airlines of valuable information and data that could be used to improve efficiency and safety.” (Pg. 201). * Company’s...
Words: 773 - Pages: 4
...WHAT CHALLENGES AND OPPORTUNITIES DID BOEING FACE IN THE LATE 1990s? Boeing wanted to save billions of dollars and reduce developmental time which led them to lose their market share to Airbus. In hindsight Boeing should have reduced airfare and focused more on innovation landing them a head of their competitors. Instead it cost them billions, put them three years behind schedule and allowed Airbus to succeed. Seeing their mistakes, Boeing turned it around by creating an aircraft that would add value to the consumer and generate profits for the company. Boeing took the opportunity to research composite materials to improve passenger cabin comforts and an overall flying experience compared to the aluminium they had been using previously. Then Boeing wanted to add value to the consumer. Using the new composite materials and upgrading the electrical system to lithium-ion batteries fuel surcharges were reduced and Boeing was able to pass along the savings to the consumers. The increased durability of the aircraft also led to reduced maintenance costs therefore reducing the replacements necessary and in turn having cost saving effects for Boeing and the consumer. Consumers were happy and stock prices increased. Although things appeared to be going wonderfully, there was a huge concern with overheating batteries and it needed to be rectified as soon as possible. Because the batteries were outsourced, there should hae been support integrated ito the design plan for maintenance...
Words: 953 - Pages: 4
...THE e-ENABLED AIRLINE, AIRPLANE, FLIGHT DECK, CABIN COMMERCIAL AVIATION Commercial Airplanes Aviation Services P.O. Box 3707, MC 21-85 Seattle, WA 98124-2207 www.boeing.com/commercial/aviationservices SERVICES The e-Enabled Advantage Phone: 206-766-1160 Fax: 206-766-1720 E-mail: e-enabled@boeing.com www.boeing.com/commercial/ams | A V IE N - C N AS ELR V I C E SV A N T A M E D I F I C A T I O N TH Oe IE S B ED AD AND GO Printed in U.S.A. 404854 06/03 COMMERCIAL AVIATION SERVICES | T H E e - E N A B L E D A D VA N TA G E EXPERIENCE THE POWER OF N E T W O R K E D O P E R AT I O N S . e-Enabled Advantage A VISION OF THE FUTURE NETWORKED ENVIRONMENT In the not-too-distant future, airlines will routinely invoke the power of integrated information and communications systems to reach new pinnacles of operational efficiency and market presence. Boeing calls it the e-Enabled Advantage. We’re coordinating the expertise of our entire company to give the airline industry a future in which people, airplanes, assets, information systems, knowledge applications, and decision support tools work together seamlessly. The Jeppesen Electronic Flight Bag, SBS International Crew Scheduling and Management software, Connexion by BoeingSM, and Boeing Airplane Health Management signal the dawn of a new age, when airborne and ground-based operations are linked in real time to enable people to achieve the extraordinary every day. Unprecedented enterprise...
Words: 921 - Pages: 4
...THE BOEING COMPANY Hoyan Yu 5/11/15 The Boeing Company Topic: Boeing products, technology, economies of scale, forces of competition and experience curve effect. Context: Boeing is one of the top industrialized companies of commercial aircrafts and other aircraft related products. The founding city was Seattle, Washington by William E Boeing. It was founded in 1916 and integrated on July 19th, 1934. Acquirement of defense in 1996 and space unit of Rockwell International expanded its market size. Later it merged with Mc Donnell Douglas to become the largest aerospace company. Boeing Company manufactures markets commercial aircrafts. It also provides associated support services to profit-making airlines across the world. It keenly engages in research and growth of armed weapon systems for defense purposes. In addition, the corporation broadened its expansion in information systems and space surveillance systems. Boeing faces a solid contest from Airbus Company, which is its leading rival. The healthy competition has enabled them to enjoy duopoly in developing innovative aircraft with new sophisticated skill. However, Boeing benefits a larger market share for having a wide range of products and services. For instance, it supplies defense system to the United States government and space systems to NASA. The current forces of competition have made Boeing focus deeply on research and development to cater the need of consumers. In order to survive, Boeing reduces running...
Words: 1720 - Pages: 7
...cause analysis 4 Recommendation 5 & 6 Recommendation and implementation 7 Monitor & Control 8 Conclusion 8 EXECUTIVE SUMMARY Boeing Australia Limited (BAL) was formed in late 1996, relatively new company and a global extension of the U.S. firm. The Boeing Co. developed capabilities in the areas of space and communications, site management, and the upgrade and maintenance of military aircraft and equipment. As BAL grew, so did the legacy information system it used for both internal communications and external dealings with customers. BAL, however, faced difficult decisions as it sought to upgrade its procurement systems and processes to improve operations. In early 1999, BAL recruited a new national procurement manager, Russell Menere. His immediate task was to look for gains in productivity by improving procurement processes, either through cost savings or by reduced processing time. To meet this objective, he initiated a number of short-term improvements. These included the rationalization of number of BAL's suppliers, improving BAL's relationships with its key suppliers; the introduction of a credit-card purchasing system for low-value, large-volume consumables and the adoption of electronic ordering processes with BAL's larger suppliers. In 2002, with new opportunities available through e-business technology, Russell needs to decide what BAL's next step should be. Should BAL invest in a new system that would simplify the procurement process...
Words: 1752 - Pages: 8
...growing carriers including the Emirates, Qatar airways and Etihad airways, and the low cost competitors such as Air Asia and Jetstar to the well-established carriers such as Cathy Pacific and Singapore airlines, the organizations have enacted strategic changes to position itself on the global air transport market. The wakeup call came in 2005 when the airline experienced its worst experience. The Malaysia Airline System achieved success in two years and braced the impact of the financial meltdown that rocked the world at around that time. The underlying success factor behind its swift recovery attributes to the strategic and competitive strategies implemented, and effective decisions made that have since sustained its competitive advantage over other airlines (Alamdari & Fagan, 2005). It is not for any organization, let alone an airline industry to undergo such a dramatic turn within two years and beat established...
Words: 2378 - Pages: 10
...Among the early form of in-flight entertainment is the screening of Sir Arthur Conan Doyle’s The Lost World in the Imperial Airways flight from London to Paris on 7th April 1925. Since then, it has seen rapid development as airlines are eager to use their respective in-flight entertainment systems as a strategic product to compete in the industry. This development then opened the possibility of in-flight connectivity, which enables passengers to connect and communicate via satellite phone, intranet and the most recent development, in-flight internet. In-flight internet was first developed by Boeing with its Connexion by Boeing (CBB), an in-flight online connectivity service. It was a service that allowed traveller to access connection while on board a plane. Following the trend, airlines have been pushing to offer in-flight connectivity in their flights, with the latest trend being the offering of Internet services on board. This focus on in-flight connectivity and on-board internet facility even led to some within the aviation industry to refer the entire in-flight entertainment category as IFEC (In-Flight Entertainment and...
Words: 3484 - Pages: 14
...Jet Star What type of organisation is Jet Star? Jetstar is a value based carrier network providing all day every day low fares with an open approach to air travel serving in excess of 50 markets across the Asia and Asia Pacific region. We believe in fostering a culture that is focused on our customers - ensuring we deliver the lowest fares and provide a travel experience that is refreshing and enjoyable, alongside our commitment to all day every day low fares both to our passengers and our staff. The Jetstar Group includes wholly owned Qantas subsidiaries operating from Australia and New Zealand, Express Ground Handling and partner carriers including Jetstar Asia and Valuair in Singapore and Jetstar Pacific in Vietnam. Jetstar is Australia's low fares carrier and fare leader now operating to 19 Australian domestic destinations and an existing 11 short and long haul overseas destinations. Jetstar Group airlines employ directly 7,000 staff across the Asia Pacific region. Mission Statement Jetstar's mission is to enable more people to fly more often and also to extend air travel to those who have previously never been able to afford to fly by offering customers low fares, all day, every day. About Jetstar / Valuair in Singapore Jetstar Asia and Valuair are part of the Jetstar Group's value based network which aims to provide all day every day low fares to South East Asia's most popular leisure destinations. The creation of the airline came six months after...
Words: 3814 - Pages: 16
...Boeing and Capitalism in the United States of America Abstract This study investigates American capitalism in a historic perspective. The paper then proceeds to examine the issue on a meso-level with its relation to the company Boeing. Finally it discusses the various entrepreneurial decisions and their impact on the success and failures of the corporation. The approach has been reading relevant historical books, finding articles on the Internet and interpreting different views and opinions such as the theories of Schumpeter and Fligstein. The research shows that the American capitalism has changed towards a greater use of intervention that differs from the very laissez fare conditions that were dominating in the beginning of American capitalism, though it is still not comparable with the European conditions. The company Boeing is being subsidized by the government, which can be characterized as crony capitalism, since the cooperation between these organizations helped Boeing develop a monopoly in the market of aircraft manufacturing. The entrepreneurial decisions in corporate strategy and structure have led Boeing to both peaks and disappointments. Table of Contents Introduction 3 Phases of American capitalism 3 Characteristics of the American capitalism 4 The Corporation and the State 5 Globalization 6 The 1992 EU-US Agreement 7 The technological development 8 Analysis of the abovementioned development and its reflection on American capitalism 9 ...
Words: 7319 - Pages: 30
...Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing has a long tradition of aerospace leadership and innovation. The company continues to expand its product line and services to meet emerging customer needs. Its broad range of capabilities includes creating new, more efficient members of its commercial airplane family; integrating military platforms, defense systems and the warfighter through network-enabled solutions; creating advanced technology solutions; and arranging innovative customer-financing options. With corporate offices in Chicago, Boeing employs more than 170,000 people across the United States and in 70 countries. This represents one of the most diverse, talented and innovative workforces anywhere. More than 140,000 employees hold college degrees -- including nearly 35,000 advanced degrees -- in virtually every business and technical field from approximately 2,700 colleges and universities worldwide. Our enterprise also leverages the talents of hundreds of thousands more skilled people working for Boeing suppliers worldwide...
Words: 6266 - Pages: 26
...I. Introduction Globalization coupled with technology has dramatically altered the competitive landscape of corporate America. As corporations fight for scarce resources, and savvy consumers equipped with greater knowledge through the World Wide Web gain bargaining power, the necessity for big business to improve supply chain management procedures has intensified. The explosive growth of emerging markets like China and India creates both opportunities and challenges in transporting goods and services. The businesses that can leverage technological advances are in a position to garner market share and add value to their shareholders. FedEx has become a world leader in the parcel delivery business. The name FedEx evokes thoughts of getting packages to customers the next day. FedEx now is used as a verb to tell customers that a shipment will be sent so that it is received the next day. Delivering a product on-schedule is the result of multiple business processes working seamlessly to create a Value Chain that yields a firm greater profit over costs (Dess, Lumpkin, & Eisner, 2007). A primary activity of the Value Chain is Supply Chain Management (SCM). Supply Chain Management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer ((2006). Supply Chain Management Retrieved April 24, 2007, from http://searchcio.techtarget.com/sDefinition/0,,sid19_gci214546,00.html ) Running...
Words: 4749 - Pages: 19
...Global Production, Outsourcing, and Logistics Chapter Outline OPENING CASE: Building the Boeing 787 INTRODUCTION STRATEGY, PRODUCTION AND LOGISTICS WHERE TO PRODUCE Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities THE STRATEGIC ROLE OF FOREIGN FACTORIES Management Focus: Hewlett Packard in Singapore OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers MANAGING A GLOBAL SUPPLY CHAIN The Role of Just-in-Time Inventory The Role of Information Technology and the Internet SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Li & Fung Learning Objectives 1. Explain why production and logistics decisions are of central importance to many multinational businesses. 2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities. 3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. 4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers. 5. Articulate what is required to efficiently coordinate a globally dispersed production system. Chapter Summary ...
Words: 6454 - Pages: 26
...Global Production, Outsourcing, and Logistics Chapter Outline OPENING CASE: Building the Boeing 787 INTRODUCTION STRATEGY, PRODUCTION AND LOGISTICS WHERE TO PRODUCE Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities THE STRATEGIC ROLE OF FOREIGN FACTORIES Management Focus: Hewlett Packard in Singapore OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers MANAGING A GLOBAL SUPPLY CHAIN The Role of Just-in-Time Inventory The Role of Information Technology and the Internet SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Li & Fung Learning Objectives 1. Explain why production and logistics decisions are of central importance to many multinational businesses. 2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities. 3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. 4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers. 5. Articulate what is required to efficiently coordinate a globally dispersed production system. Chapter Summary This...
Words: 6454 - Pages: 26
