Boeing Management Planning Paper
Marcia Davis
MGT/330
January 12, 2011
Sylvester Taylor

Boeing Management Planning Paper Boeing like many successful companies today does not stand still or rest on their laurels of previous accomplishments. If they do they can become vulnerable to competition, technology, changes in customer preferences, and the business environment. Instead, they use their current successes to continue to build a competitive advantage for the future, constantly seeking new ways to remain flexible, innovative, efficient, and responsive to their customers. One of the most important ways of accomplishing this is to make sure that their organization structures and systems remain adaptable. A business must always be prepared to meet the complex and ever-changing challenges that managers and their organizations constantly confront. Boeing like many other companies has to use innovations in design and manufacturing as well as a focus on quality and other vital factors in the development of airplanes. Not long ago Boeing was in turmoil in the aftermath of the 9/11 terrorists attacks. (Bateman & Snell 2009) Boeing suffered turnover in their executive ranks that caused uncertainty coupled with their chief rival European-based Airbus surpassing them in annual sales, Boeing decided it was time to make some changes. The Boeing Company business has many members including employees, managers, chief executive officer James McNerney, and the board of directors. Boeing periodically reviews the Company's corporate governance principles and current practices. According to (Boeing, 2008), The Board and the corporate officers recognize that the long term interests for the company are advanced when they are responsive to the concerns of communities, customers, employees, public officials, shareholders, and suppliers. Additionally, (Boeing, 2008) the Board has adopted a Code of Ethical Business Conduct to focus the Board and each director on areas of ethical risk, provide guidance to help him or her effectively to recognize and deal with ethical issues, enhance existing mechanisms to continue the reporting of unethical conduct, and help to continue to foster and sustain a culture of honesty and accountability. Boeings Board of Directors have delegated authority to separate committees whose responsibility is to the customers, employees, and the board. These committees have full security clearance and responsibility of planning, leading, organizing, and controlling all the while reporting back to the board. Boeing, the largest aerospace company as well as the largest manufacturer of commercial and military aircraft in the world is also the United States number one exporter in sales. Boeings military aircraft come equipped with missiles, satellite, launch vehicles, advanced information, and communication systems. Boeing’s management must understand the importance of the legal, ethical, and social responsibility of their organizations, all of which have an effect on the planning function of management. Some of the legal regulations Boeing encounters are antitrust regulations and foreign trade regulations. Boeing has a legal responsibility to follow all government regulations and governments can influence Boeings strategy by the laws the government imposes. Boeing has to pay attention to environmental, copyright, and patent laws. Boeing must respond to other countries political and economic environment. The biggest legal responsibility Boeing faces is the safety of their passengers. When an airplane crashes without manipulation from outside factors the airline is held responsible. The airline is also held responsible for paying out any compensation damages to the surviving family members. Boeing has had its problems concerning ethics. Lawmakers question Boeing’s ethical commitments. According to (Mandel, 2006), there are two separate charges involving Boeing. Boeing charged with improper possession of documents belonging to competitor Lockheed Martin Corporation. The documents were most likely used to win a contract for government rocket launches. Boeing has put into place an extensive ethics policy developed to protect the corporation and its employees. The policy requires all employees to follow the Boeing Code of Conduct. Boeing has also set up a hotline for employees to ask questions and report questionable behavior. These efforts are to create a favorable corporate image for Boeing. Management must make decisions based on what is right and wrong not what will be profitable. In essence Boeing’s actions must match up with its ethics policies. The aircraft industry has many factors that contain risks and could affect the airlines success. The three main factors are economy, globalization, and terrorism. All these factors could affect Boeings strategic, tactical, and contingency planning. The economy of a country is a huge factor for aircraft manufacturers. When an economy is on the downturn or appears to be heading toward a recession the demand for airline travel goes down along with the requests for new airplanes. Boeing has had to look to other countries for business and focus more on their military projects. The threat of terrorism has affected the strategic and management plans in the airline industry. Terrorist attacks are unpredictable making passengers less likely to fly, and this affects the airline industry’s profits. Since 9/11 many airlines have restricted flights to certain countries such as the Middle East for fear of hijacking. Terrorism in the air minimization requires the combined efforts of government, security agencies, and the airlines. Social responsibility is an individual or group’s actions benefiting society more than oneself or the group. Boeing uses research and development as a way to increase customer’s choices every year as well as providing a safe and effective service. Boeing is currently developing the Boeing 787 Dreamliner. The Dreamliner represents a new era for Boeing. Some of the features of this new jet include a new interior environment that will have a lower altitude and higher humidity making the customers more comfortable during long flights (Troy, 2005). Boeing looked at the industry and decided the airlines wanted more point-to-point flights instead of hub-and-spoke routes of the past. The 787 is a midsized aircraft that can service more regional airports. The 787 has a projected 20% reduction in fuel, in this uncertain oil market also attracted attention of airlines. Boeing understands that the purpose of using research and development is more than just a way to raise profits they see it as a way to benefit the customer. This is one reason Boeing is one of the top airline companies. Boeing is also a member of the foundation for Corporate and Social responsibility, and encourages other companies’ involvement in supporting ethics in business. Boeing’s planning includes many factors ranging from legal issues, government regulations, corporate responsibility, ethics, and economic factors. Boeing has legal departments to handle both external and internal legal problems as well as help in the planning process. Corporate social responsibility is important because consumers will judge an organization based on efforts they put forward in this area. Despite some problems that Boeing has had in regard to ethics they still maintain a strong code of ethics that has helped Boeing stay successful in this very competitive field. Current economic conditions affect all areas of planning within Boeing and, they are constantly adjusting the planning to meet the circumstances of the changing external and internal factors. Globalization makes the airline industry more competitive. People all over the world may recognize Boeing in much the same way as they do Coca-Cola or Nike (Beck, 2008). Name recognition is not enough to make a company global. Today Globalization is recognition as a local part of the culture, communities, and regions in which it does business. Boeing is working on its globalization strategy by creating new partnerships, joint ventures, mergers and acquisitions, and supplier relationships. One way Boeing addresses this is to have executives in overseas offices. Boeing hires individuals knowledgeable about local culture and language to head up these offices. These executives help Boeing develop partnerships and address governmental issues that affect Boeing. They also offer advice for the advertising and marketing campaigns in these countries. Globalization increases the talent pool resources available to companies looking to go global. Globalization also gives a different perspective on the world and realization that the world is full of potential customers and technology opportunities companies need to stay profitable in today’s world. Boeing does not stand still, instead Boeing is constantly re-evaluating the resources they have and how these resources can better serve the business initiative of managing external and internal factors. Boeing uses their current successes to launch them into the future and remain competitive. They address legal and ethical issues as well as improved their social responsibility all the while holding others responsible for the same. Boeing has prepared for influences regarding strategic, tactical, operational, and contingency planning. Boeing is constantly seeking new ways to remain flexible, innovative, efficient, and responsive to their customers. One of the most important ways of accomplishing this is to make sure that their organization structures and systems remain adaptable. A business must always be prepared to meet the complex and ever-changing challenges that managers and their organizations constantly confront.

References Bateman, T., & Snell, S. (2009). Management: Leading & collaborating in a

competitive world (8th ed.). Boston, MA: McGraw-Hill Irwin.

Boeing (2008), Retrieved January 12, 2011, from www.boeing.com. Troy (2005) Lighting Research Center partners with Boeing to develop aircraft lighting solutions.