...Boeing Company is in the manufacturing industry of complete aircraft, aircraft engines, propulsion units and other related equipment or parts; they develop and make prototypes of aircraft and complete aircraft overhaul and rebuilding. Major competitors are United Technologies Corp., Lockheed Martin Corporation, Northrop Grumman Corp., and General Electric Company. The Boeing Co., owns a whopping 34.8% of the market share in this industry, more than double the amount of their largest competitor, United Technologies. Boeing and their competitors have seen a sharp increase in fuel prices and airlines around the globe have a need to renew or expand their current fleets. The overseas exporting market is seeing ongoing recovery, representing the industry’s largest market. This is largely due in part to the American dollar not being as strong as oversees currency, allowing for American made products to be cheaper through exports (imports for buyers). The industry is estimated to grow 2.8% per year up to 2017. With strong domestic and international demand and a decrease in federal funding, Boeing Co., must incorporate technological improvements to drive growth in the next 5 years to maintain their share of the market. With fuel costs on the rise, Boeing will be forced to create airplanes and parts that can be designed to minimize fuel consumption, thus increasing revenue for the company. Airline companies want a product that is more fuel efficient and will utilize any manufacturer...
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...Boeing – Competitive Rivalry Within the Industry 1) Number of competitors a. Rivalry from its main competitor, Airbus, is considered very high b. Boeing currently provides aircraft to 75% of the world’s fleet c. Losing market share would have a major impact on the company’s performance and future development d. Airbus has been more invested in marketing research and new product development, whereas Boeing has not taken as much interest 2) Rate of industry growth a. The FAA predicts steady growth for the airline industry over the next 20 years, with yearly totals climbing to nearly 1.3 billion 3) Product or service characteristics a. Boeing was able to capitalize on the success of its family-of-aircraft approach, which allowed the company to assemble one base model of aircraft that could be modified in a variety of ways to meet the needs and requirements of different customers b. The family concept allowed the company to rapidly accumulate a base of knowledge that could be applied to future generations of aircraft 4) Amount of fixed costs a. Boeing is writing off billions of dollars in fixed costs used to produce its 747-8 airplane b. This is coupled with a sinking demand and lower production rate 5) High of exit barriers a. Since the airline industry is highly specialized, there is a low percentage of companies that voluntarily leave the industry 6) Diversity of rivals a. In this scenario, Boeing’s main and only competitor is Airbus b. These rivals have...
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...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 stakeholders. As the complexity of business and capital markets increase, companies are...
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...Boeing is one of the leaders of the aerospace industry. Boeing makes a wide assortment of aircraft which includes military crafts, commercial aircraft and even weapons such as missiles. Boing also designs and manufactures electronic and communication systems. Boeing is major service provider for NASA and operates the Space Shuttle and International space station. Boeing is successful and owes a large portion of that success to its ability to plan around complicated issues such as legal and ethical standards. Boeing has to comply with legal requirements that make planning a challenge at times. Boeing must handle internal and external affairs which can either shine a negative light on the company or a positive one. An example of this is a lawsuit that was filed in 2000 that claimed pay differential between the two genders at Boeing. Though there was evidence that supported the claim of pay differential, Boeings lawyers were able to protect the company from public scrutiny. The case was settled out of court. Boeing is well known for its dedication to social responsibility. Boeing has been philanthropic and will likely continue to be. The company is a member of the Foundation for Corporate and Social Responsibility. Some examples of its efforts in the community are the refurbishing of the Chicago Air and Water show and the Royal Aeronautical Society in London. Economic conditions have a direct impact on Boeing and its planning. With the economy at a down swing and airlines...
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...chosen to explore is the Boeing Company specifically and the aerospace manufacturing industry as a whole, more generally. I will cover the role that external social pressures play in influencing the industry in both their compliance with government and professional ethics. I will also endeavor to highlight how the pressures brought to bear on the industry by the public and the government is relevant to their decisions both corporately and individually by their employees. Finally, I will share my thoughts on the relationship between legal and ethical issues with regard to the industry. To begin then, let’s explore what role external social pressures have in influencing the Boeing Company and by extension, the aerospace industry’s organizational ethics. The level of trust that must be present by the public in the company that builds the airplane they fly in is best described in the words of the Boeing employee code of conduct “…must not engage in conduct or activity that may raise questions as to the company's honesty, impartiality, or reputation or otherwise cause embarrassment to the company.” (Boeing, 2014) Boeing and the entire aerospace industry are hyper aware of their image and the perceptions of the flying public. When social pressure is brought to bear the entire industry takes notice and works to renew and enhance the public’s trust. For example, last year Boeing experienced a public relations...
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...Introduction Founded by William Boeing in Seattle, Washington, United States on July 15, 1916. Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defence, 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 defence systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing employs more than 165,000 people across the United States and in more than 65 countries. What Boeing Does Today • Design, assemble and support commercial jetliners – Boeing 7-series family of airplanes leads the industry – Commercial Aviation Services offers broad range of services to passenger and freight carriers • Design, assemble and support defence systems – World’s largest designer and manufacturer of military transport, tankers, fighters and rotorcraft – Global Services & Support provides services to government customers worldwide • Design and assemble satellites and launch vehicles – World’s largest provider of commercial and military satellites; major service provider to NASA and prime contractor for the International Space Station • Integrate and support large-scale systems, develop networking technology and network-centric solutions • Provide financing solutions focused...
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...Boeing Working Capital – FI515 Managerial Finance 1 Hector Rueda TABLE OF CONTENTS Introduction, Company Overview ………….. ……………………………………… Risk factors …………………………………………………………………………... Boeing Balance Sheet ……………………………….……………………….………. 2 3 4 Boeing income Statement . …………………………………………………….……. 18 Boeing Working Capital………………………………………………………….…… 24 Boeing Valuation.…………………………………………………………….……… 29 Conclusion …………………………………………………………………….…….. 37 References …. ……………………………………………………………………….. 38 Appendix Financial Statements & Ratios..…………………………………………………….. Discounted Free Cash Flow projection …………………………………………….. CAGR ………………………………………………………………………………. Terminal Value …………………………………………………………………….. 40 46 47 47 1 Introduction William Boeing founded the Boeing in 1916, in the midst of World War I (U.S. Centennial of Flight Commission, 2011). Since then the company just took off to become “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 10K). Methodology We used various sources to gather our information, primary sources as well as secondary, Boeing...
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...Manufacturing Industry Analysis Manufacturing Industry Analysis Introduction Manufacturing industry refers to businesses that employ machines, tool, labors, chemical and biological processing to convert raw materials to finished goods on a relatively large scale. This industry makes up a sizable portion of the industrial production sector in developed nations. It also boosts the economic growth and creates jobs. In 2013, manufacturers contributed $2.8 trillion to the economy, up from $2.03 trillion in 2012. This was 12.5% of GDP. For every $1.00 spent in manufacturing, another $1.2 is added to the economy, the highest multiplier effect of any economic sector. Manufacturing promotes innovation, productivity and trade. Globally, manufacturing continues to grow. It now accounts for approximately 16% of global GDP and 14% of employment. The latest trend of manufacturing and industrial companies is that more and more of them are investing in emerging market to gain a foothold in future large market. Manufacturers expect about 40% of their global revenues to come from emerging market by 2017. General Environment Analysis General Environment Segment | Changes that may affect the industry | Level of Impact | Threat, Opportunity or Both? | What are companies in the industry doing about this trend? | Demographic | Education, sex, race | Moderate | Opportunity | More and more knowledgeable and skilled workers and expertise | Sociocultural | More women in workforceMore...
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...MSL 687-90 Case Study #1 – Boeing 1. I believe there are one or more diagnostic models that provide a framework that succinctly identifies the key factors at the center of the Boeing situation. The first diagnostic model is 7-S Framework. According to our text, the 7-S Framework model is based on the proposition such as the organizational effectiveness that comes from the interaction of multiple factors and secondly successful change that requires attention to the interconnectedness of the variables. This diagnostic model consists of seven factors: structure, strategy, systems, style, staff, skills, and superordinate goals. The first part of the framework is structure; the way the company is structured when it comes to staff and management and also the way activities is coordinated in the organization. In the case, the problem with the 1994 airbus shocked the management executives and began a series of changes. These changes were implemented to overcome their historical bureaucratic structure, which has made it hard to be flexible and adapt to the external environment systems. Second part is strategy, which includes the update of their technology systems, downsize their operations, and re-establish relationships with their suppliers and the only feasible way costs could be cut. In 2001, Boeing tried to implement lean manufacturing, but they face great problems due to decentralized information system. The object of the project was to implement an automated...
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...Running head: DIVERSITY AND THE BOEING COMPANY The Boeing Company, the Struggle to the Top Introduction to the Boeing Company Boeing is one of the greatest aeronautical companies in the world and they have developed many innovative products and are using the most state of the art managerial, engineering and research known to man. “Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. As a major service provider to NASA, Boeing operates the Space Shuttle and International Space Station. The company also provides numerous military and commercial airline support services. Boeing has customers in more than 90 countries around the world and is one of the largest U.S. exporters in terms of sales.”(Boeing.com) “Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. Supporting these units is Boeing Capital Corporation, a global provider of financing solutions; the Shared Services Group, which provides a broad range of services to Boeing worldwide; and Boeing Engineering, Operations & Technology, which helps develop, acquire, apply and protect innovative technologies and processes.”(Boeing.com) I have worked for the Boeing Company’s Defense, Space &...
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...Discussion Module 4: Business Buying Behavior The airlines industry provides an interesting backdrop for a discussion of the business buying process. The buying behavior of the organizations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit. Consider the major influences on business buyers found in the Boeing Supplier website and then discuss Boeing's expectations of supplier. CHICAGO, April 18, 2014 /PRNewswire/ -- Boeing (NYSE: BA) has honored 16 organizations with its Supplier of the Year awards, recognizing exceptional performance and contributions to the aerospace company's success during 2013. The awards are based on meeting or exceeding quality, on-time delivery, post-delivery support and affordability goals, and demonstrating the ability to anticipate and respond to changing requirements. "These supplier-partners performed exceptionally last year—in ways that differentiated them," said Jim McNerney, Boeing chairman and chief executive officer. "They helped us provide our customers with more capability for less cost in today's dynamic environment. We look to their partnership in the future to keep Boeing at the forefront of technology, innovation, productivity and affordability." Each year, Boeing spends more than $60 billion for goods and services from more than 21,000 suppliers and partners around the world that collectively employ more than one million people. In 2013, Boeing's...
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...prosper more and more. As a society we have come to realize that we cannot live the way we have lived the last century or for that matter decade. The travel industry is beginning to do their part by designing and using alternative fuel in the cars and trucks that we use on a daily basis. Boeing in conjunction with several different companies and countries is coming up with alternative fuel to be use in many of their planes they are developing. In the last several years, Boeing has begun to do research and test alternative fuel in some of the planes that they make and use. Along with these planes, they have also partnered up with the military to use the fuel and see how it affects the environment in military equipment. Their goal in doing all of this and coming out with an alternative fuel for planes, is to reduce the gas emissions that we saw in 2005 by 50% in 2050. (Airbus, Boeing, Embraer join hands on green jet fuel initiative, (2012, March 22)) With any new potential product that the consumer may or may not see, the company must be able to comply with different rules and regulations in that particular industry. Boeing released several recommendations to the US Department of Agriculture (USDA) to accelerate the commercial viability and deployment of aviation biofuels. (Millikin, Mike. (January 2012)) By doing this, Boeing needs to supply the USDA with different agendas on how they will be approaching the sale, study, and distribution of this product. This will give everyone...
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...the aircraft industry as well as identify the three major rivals listing their strengths and weaknesses. The analysis will also include the successful strategies that Embraer used to compete against its more established rivals. The analysis will be of assistance in understanding the reasoning for the suggested strategy. Following an approval of the strategy, a detailed strategy plan will be provided to you by the assigned deadline. Analysis: Using Porter’s diamond of national competitiveness to provide a convenient way to analyze the potential reasons for Embraer’s success, we verified that human resources and people with education and knowledge are factor conditions of the diamond. Most of the hired engineers have been students in the Aeronautical Technological Institute (ITA). The government Aviation schools provided a great overall national competitive advantage. As for the supportive institutional framework, the government had a roll in funding Embraer in its early days. As well, Aeronautical Technology Center (CTA) and Aeronautical Technological Institute (ITA) created a supreme opportunity for the company. Embraer took advantage of the untapped demand for regional airlines; and this covers the demand factors of the diamond. As for the local competitive intensity, Embraer did not face national competitiveness due to the level of involvement of the government. However, internationally, the three major rivals in the aircraft industry are Bombardier, Boeing, and Airbus....
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... 31st (and a current market cap of more than $75B on 2013 May the 22th), BOEING is what we call a Gorilla in the global Aerospace and Defense Industry. Symbol of the US hegemony for many years, Boeing has confirmed its leadership in this industry. However, we know that the whole market just faced the subprime crisis of 2008, a fact that affected the growth and the excess return that the company was performing. This fact applies to the whole industry, and thus we believe that it is important to differentiate our company through its magnitude and sustainability of competitive advantages. One of their main competitive advantages is that the company has amazing benefits compare to their competitors since most of the government projects are contracted with Boeing. We...
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...Management Planning at Boeing Brian Newton MGT/330 December 1st, 2014 Steven Friloux Management Planning at Boeing To be successful in today’s competitive business world, organization and strong leadership is key. At The Boeing Company, this is no different. As one of the largest corporations in the world, they strive to set goals and plan a future around reaching those goals in a way that they can be the most prosperous. In the complex business economy of today, there are always influences that affect the way leadership paves the way. Issues regarding legality, ethics, and responsibility that follow being a major corporation are just a few. These play a major role in strategic, tactical, operational, as well as contingency planning. The Boeing Company and its leadership continually reach toward improving the organization, and the daily planning is inspired by numerous factors that shape who they are. Planning Functions Having an organized plan can be important to success and growth of a company, and Boeing follows the basic template of the planning process. It begins with the initial goal to be set, followed by an evaluation of the situation to determine what resources will be needed. This analysis is drawn from different areas such as past and current work conditions and how they can improve. A derivative plan is also brought to the table before finalizing the final decision. And lastly is...
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