...The Boeing Company The Boeing Company is an American based firm whose main activities include designing, manufacturing and selling airplanes, rockets, electronic and defense systems, satellites, launch systems and rotorcraft. Being the largest aerospace company in the world, Boeing supports airlines as well as US and related customers in more than 150 countries. With the headquarters based in Chicago Illinois, the company is lead by James McNerney who acts as the CEO and the Chairman. The success of the company locally and globally is based on the strong team work that is made up of more than 165,000 employees in the US and in more than 60 countries (Rigas, 2002). Through the culture of diversity and innovation, Boeing has maintained a skilled workforce that contributes to the operations of the two business units which include Boeing defense, space & security and Boeing Commercial Airlines. With more than 40 years as a major manufacturer of commercial jetliners, Boeing products include 737, 747, 777 and 787 airplanes among others. Boeing Company was founded in 1916 by William Boeing. As the result of improved technology and quality services that the company offered in US and globally, the company expanded an aspect that made it to change its head office from Seattle to Chicago. In its effort to improve the capital base and attain strong financial position, Boeing held an initial public offer in 1978, thus making it a public owned company. Major institutional...
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...The Boeing Company Brennan Stevenson Dr. Bernard Bugg ACC 242 Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Boeing is a top U.S. exporter, the company supports airlines and U.S. and allied government customers in more than 90 countries. Boeing products and 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 was founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing entered the age of the jet transport on July 15, 1954, when the company announced the 707 prototype. The Boeing 707 eventually made its maiden flight from Renton Field, south of Seattle. Productions go ahead for the 707 was announced by Boeing on Aug. 30, 1952, as a company financed a $16 million investment. The airplane rolled from the factory less than two years later, on May 14, 1954. Its first flight that July marked the 38th anniversary of The Boeing Company. The Boeing 707 quickly changed the face of airline travel making it now possible for trans-Atlantic flights, with Pan American Airlines being the first airlines to inaugurate the new plane with a flight from New York to Paris on October 26, 1958. Following the success of the 707, Boeing has developed...
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...The Boeing Company PEG Ratio Valuation The PEG ratio method provides an estimate of the Boeing Company value by dividing a price-earnings ratio (PE) by a forecasted 5-year growth rate (G) to generate a measure, PE/G, called a “PEG”. The PEG reveals how much the market is willing to pay for a future earnings stream growing at the forecasted rate. Selection of Comparables Two corporations were selected as being comparable to the Boeing Company. Although each has characteristics that are similar to Boeing, each is also very different from Boeing, leaving the question as to whether they are truly comparable. They are both significantly smaller companies, as measured by market capitalization. Airbus Group SE is a comparable because it is a direct competitor of Boeing’s Commercial Airplanes segment. Airbus Group is a European aerospace and defense corporation consisting of three business segments, Airbus (civil aircraft), Airbus Defense and Space and Airbus Helicopters. Lockheed Martin is a comparable because it is in the aerospace, defense, security and technologies industry and competes directly with Boeing’s Defense, Space & Security operations. Lockheed Martin is the world's largest defense contractor. About 78% of Lockheed Martin's revenues come from military sales. Value of Boeing Relative to the Comparables Company Market Current Current Current 5-yr PEG Name Cap Price Earnings PE ...
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...“The Boeing Company’s Board of Directors Fires the CEO” Problems After reading the case, some questions are apparent. The questions are very helpful to find out Boeing’s Problems. * Why Boeing’s board fired the former CEO, Conduit, only due to the scandal happened in Conduit’s tenure? * Why Stonecipher could receive such high pension and benefits, even after retired and resigned? Is the payment method for the directors appropriate? * Why the board appointed James Bell, who was not a member of board or of any committees before the assignment, to serve as acting CEO after Stonecipher? Is there any formal succeeding plan for the CEO? * Why Boeing just fired Stonecipher but did nothing to that women executive? If the relationship was not the only reason for the resignation, what were the other reasons? Because that woman, Debra Peabody, worked in the company’s government-relations office? * Did Boeing treat its CEO’s resignation so careless, even the CEO brought obvious operating improvement during the short 15 months? * Why that informant could intercept the company’s CEO so easily? Is Boeing’s corporate security appropriate, especially Boeing was cooperating with Air Force? * Why the board made Stonecipher’s affair public while not private, even that relationships had no direct impact on the company’s performance? In conclusion, some problems that Boeing faced are as follows: First, Boeing was dependent on its main customer—Air Force so much...
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...program with the Boeing Company would be crucial for Rutgers University and its students. The Boeing Company is a great fit because they have a strong financial outlook, have an established internship program, and career placement. The Boeing Company offers several business summer internships. These full-time, paid internships will help our students start on their careers by gaining hands-on experience that will directly add to their future and careers. For all of these reasons, we should pursue a relationship with The Boeing Company that will help our students establish a career for the future. Strong Financial Outlook The Boeing Company recorded revenues of $81,698 million during the fiscal year ended December 2012(Marketline.com). Boeing has strong sales and products in the pipeline such as the 787, that will drive revenue up considerably in the next few years (Marketline.com) The sales of the 787 will lead to sales of over 200 million per unit (Fontevecchia), which will drive the companies profits above the current revenues. Recently, Boeing upgraded their 20 year financial outlook since it is estimated that over 35,000 new jets are needed to replace the worlds aging fleet, a worth over 3 trillion dollars, in a sector where Boeing is one of the industry leaders. Also strong sales to the developing satellite industry and the booming defense sector will also help the financial outlook of Boeings bottom line. Established Internship Program The Boeing Company has a long...
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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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...COMPARISON BETWEEN THE BOEING COMPANY AND LOCKHEED MARTIN Keith L. Hohl EMGT 452 Semester Project 14 December 1999 Table of Contents 1. Introduction/Study Objective 2. Boeing Financial Statement and Analysis 2.1. Background and Product Lines 2.2. Consolidated Balance and Income Statements 2.3. Divisional Financial Statements 2.4. Ratio and Trend Analysis 3. Lockheed Martin Financial Statement and Analysis 3.1. Background and Product Lines 3.2. Consolidated Balance and Income Statements 3.3. Divisional Financial Statements 3.4. Ratio and Trend Analysis 4. Financial Comparison between the Two Companies 4.1. Consolidated Comparisons 4.2. Military Aircraft and Space Divisions Comparisons 5. Summary/Conclusions 6. Bibliography 7. List of Tables 8. List of Figures List of Tables T-1: Consolidated Financial Balance Sheet-The Boeing Company T-2: Consolidated Income Statement-The Boeing Company T-3: Divisional Financial Summary-The Boeing Company T-4: Consolidated Financial Ratio Analysis-The Boeing Company T-5: Consolidated Financial Balance Sheet-Lockheed Martin T-6: Consolidated Income Statement- Lockheed Martin T-7: Divisional Financial Summary- Lockheed Martin T-8: Consolidated Financial Ratio Analysis- Lockheed Martin List of Figures F-1: Total Assets Divisional Trend Analysis-The Boeing Company F-2: Sales Divisional Trend Analysis-The Boeing Company F-3: Net Earnings Divisional...
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...Stock Analysis: Boeing Company Ashutosh Kr.Sinha (DSI# d03252878) 730 Santana Drive Corona Del Mar, CA 92625 Email: ashutosh_sinha55@yahoo.com (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 aircraft...
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...Introduction The goal of the study is to provide overall financial statement overview of The Boeing Company using the knowledge obtained during the Financial Management course. The main question of the study is how financially well the company is at the moment and what investment expectation it generates on the market nowdays. The Boeing Company background The company was originally founded by William Boeing on July 15, 1916, as "The Pacific Aero Products Company". Two years later it was renamed into “The Boeing Company”, on May 9, 1917. Since that date the company grew and acquired a lot of its competitors, including the McDonnell Douglas in 1997. [pic] The Boeing’s structure consists of two main divisions and two supporting divisions: - Boeing’s Commercial Airlines (BCA) - Boeing Defense Space & Security (BDS), which in turn consists of: o Boeing Military Aircraft o Network & Space Systems o Global Services & Support - Boeing Capital Corporation (BCC) - Other segments (including own Fire department and other non-profile activities) [pic] The Boeing Company’s Commercial Airliners division took the leading market positions up to 2003. Financial Ratios Analysis Liquidity Boeing’s liquidity ratios increased in 2010 and 2009 in comparison to 2008 values, but current and acid-test ratios are still below the industry average. Reasons: - the amount of money and short-term investments...
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...Starbucks case report Xiaoteng Gao, Xiao Liu, Ping Cai, Mengqiong He, Yuheng Chen 1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? In the early 1982, the inspiring experience of Milan’s coffee culture and espresso bars’ role in Italians’ everyday social lives motivated Howard Schult to convince the company to set up an espresso bar in the corner of its shop which became the prototype for his long-term vision and also foreshadowed the success of Starbucks. After Schult taking over the company, he took all measures to take the company public by opening new stores, increasing the variety of coffee beverage, positioning the main customers, raising money and etc. He also tried his best to have created Starbucks’ experiential brand strategy and value in the process of the coffee drinking experience. In summary, we can conclude that the success of Starbucks in the early 1990’s can be attributed to Howard Schultz’s vision of the Starbucks brand which placed value in the process of the coffee drinking experience. And there are seven main factors accounting for the extraordinary success of Starbucks in the early 1990s as follows: a. Coffee itself: Starbucks kept full control of quality of its products to be the highest-quality coffee in the world by souring from qualified channels, controlling as much of the supply chain as possible, working directly with growers of origin to purchase green beans and overseeing the custom-roasting process...
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...Boeing Management Planning I have chosen that the company I an going to do research into is that of Boeing. Boeing is considered to be a leading company that manufactures jetliners and military aircrafts. Boeing provides products to over 150 countries and employees ore than 165,000 people. (Boeing, 2011). Boeing is also one of the companies that currently works with the National Aeronautics and Space Administration (NASA), they provide support for the space shuttle. There are many factors that can and will influence the companies overall success, these can be internal factors as well as external factors. I will briefly discuss some of the things that works well for Boeing including management function, ethics, and factors that will influence the company's different aspects of planning. Boeing by the looks if it has a very structured aspect of management, this consists of the Chairman, president, senior vice president, and administration. The company states that they values culture which is what guides them as a business. Boeing has a comprehensive approach when it comes to how they want to me known and that includes the following: • Boeing strives to be creative in the products and services that they provide for their customers world wide (Boeing, 2011) • Boeing their business with a responsible and forward thinking manner. This mean commitment to values, customer satisfaction, safety, quality, and integrity (Boeing, 2011). • Boeing partners with different organizations...
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...examines The Boeing Company (BA) strategic initiatives taken in relative to the organization and operation adaptation to the developing competitive environment. Boeing operates as a global company and facing tough competition recently from Airbus, Lockheed Martin, EADS, Northrop Grumman, etc. Politics, finance, economy, and resources (to name a few) impact the global market in which Boeing operates. As a result, Boeing needs to constantly evaluate its global strategy and the tactics it uses to capture the market and maintain growth. Economic Trends Recent global events, including regional political turmoil, natural disasters, and debt crises, have affected global economic growth. While global growth is expected to recover, the risk of persistent high oil prices and debt contagion could have lasting effects on the economy (The Boeing Company, n.d.). Economic growth also could be affected by slowing trade liberalization in some regions. Reduced liberalization could prolong the recovery period, affecting the demand for air travel and new airplanes. Though recent data indicates that the global economy continues to recover, the pace of the recovery in 2011 has moderated compared to 2010. High oil prices, natural disasters (Japan earthquake) and resulting consequences in a politically unrest Middle East area pose as primary threat to a continued economy recovery. China continues to grow and outpace the world DGP growth rate compared to United States, Europe and Japan (The Boeing Company...
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...Boeing Innovation Strategy Shayne Arndt, Lee Eadie, Sridhar Lakshminarayanan, Norberto Rodriquez, Phylicia Smith, and Amber Thompson STR/581 April 2, 2012 Cassandra Molavrh Boeing Innovation Strategy Innovations are a fundamental prerequisite for competitiveness. The economic crisis forced most businesses to conserve funds in various operational areas. Innovation strategy in any business or industry involves aligning the product life cycles in the company with the various research and development activities. Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. A top United States exporter, the company supports airlines and United States 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, 2012). Boeing’s Background In the ever-changing business environment, organizations are constantly seeking ways to diversify products and revenue sources, create the best organizational structure, and foster productive work environment cultures through innovation strategies. Boeing is a leading innovator in the aviation industry. The organization faces industry-wide challenges including increasing fuel costs, price-conscious customers, and increased...
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...Boeing and its Management Planning Christopher Bayles MGT/330 October 2, 2011 Bill Escue Boeing is one of the biggest aviation companies in the world with relations to a number of different countries. They produce products for commercial and government use as well as have contracts with National Aeronautics and Space Administration (NASA). Management planning is one of the primary key focuses to Boeing because of the size of its massive corporation. They create some of the top high-end equipment for medical, commercial, and government use. The primary workings of the company includes goods that aid in the carrying of cargo, people, and other equipment used by the government. The Federal Aviation Administration (FAA) oversees the operation of aircrafts for safety concerns. Because of the safety concerns, Boeing conducts very extensive planning to operate a well-organized and successful business. Planning includes precautionary needs for the future, figuring out the departments’ objectives, activities that could be of some concern to a company, and a company's techniques they will need to accomplish a successful result (Boeing, 2010). During plans making Boeing has to consider the unpredicted problems so that there can be no possible mishaps that could happen. By setting obtainable goals in marketing, sales, mechanical markets and engineering, and updating and training employees to be more effective will ensure that the products exceed high expectations and...
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...The Boeing Company, Part II Political The Boeing Company is very involved in the politics of the industry. Therefore, Boeing has a Government Operations office located near Washington D.C., and the office serves the company in three ways. One way is that they work with government officials and organizations to protect and advance the company's interests, competitiveness, and reputation. This is very important because as the world’s largest aircraft manufacturer, Boeing does not want to get surprised by a policy or rule that could hurt the company. In addition, another service is to win government contracts. Recently, Boeing won a contract with the U.S. Navy for an order of 20 P-8A airplanes for $2.5 billion (Smith, 2016). Due the location of the office, Boeing was able to secure this contract, as well as many others over the history of the company. Lastly, Boeing and the government works hard to shape public policy issues that impact the company. The office works with public officials across all levels of government, federal, state and local, to work with the government to be compliant. Boeing’s team also works with various third party organizations such as associations, public policy groups, and international organizations (Boeing, 2009). The effective income tax rates for 2014, 2013, 2012 were 23.7%, 26.4% and 34.0%, respectively. Boeing’s 2014 effective tax rate was lower than 2013 primarily due to tax benefits of $265 million related to tax basis adjustments and $259...
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