STUDENT NAME – GEETINDER KAUR STUDENT ID – 1119586 Course: MGT704, Global Business ManagementProfessor: Dr Maria MullinSubmission Date: October 15, 2018 Boeing Company Executive summary The William Boeing found the Boeing organization on 15 July 1916. The latest Boeing found by MC Donnel Douglas. The Boeing Company is an international organization which is very famous in the globalization and in the industrial field.
This company manufactures jetliners, airplanes, rockets, missiles defence and security. First and foremost, this organization produces the number of bigger aircraft and it is the more usable defence contractor in the world. Boeing who found the company he was first started his study at Yale University and then he worked individually and alone and he gained lots of knowledge about woods and after that he designed airplanes. The Boeings first aircraft is B&W.
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Then Boeing was creating a number of planes such as in 1919 Boeing B1 flight boat, Boeing Model 8 in 1924, Model 40 in 1925 and other passenger transport. The Boeing company manufactured different kinds of airplanes such as Boeing 777, 707, 737 and so on aircraft. The 767 and 747 airplanes are medium in size and the Boeing developed 777 double engines and world’s largest airplane so that’s why this company become so famous because it made so many family airplanes and which are so comfortable and the security is also very good in these planes and passengers feel more comfortable and relax and can easily go one to another country with their families in these bigger family airplanes.
The original logo of the company is as follows: Boeing’s original logo BOEING FIRST AIRCRAFTBOEING 777BESR SEATING PLAN BY BOEING 777 AIRCRAFT TABLE OF CONTENTSS.No Topic Page number1. Introduction 2. Introduction to the problem identification and analysisIntroduction to the TopicObjective and sub-objective of the studyOverview of the companyBusiness vision and mission 3. Problem identification2.1 organisational culture and structure2.2 external environment forces 2.
3 technological resources2.4 international challenges 4. Body/DiscussionEvaluation of strategies:Use theoretical framework3.1 Multinational strategies and enter prices3.
2 Geographic multinational replicators3.3 co-operate social responsibility3.4 ownership strategies 5. Conclusions and Recommendations 6. References 7. Appendices INTRODUCTION Boeing Company firstly found in Washington and the US and Chicago headquarters. Boeing is an American corporation which produced rockets, satellites, airplanes, missiles and so on. This organization mainly deals with the aerospace industry and this company exports number of jet engines, weapons, electronics so that’s why this is the biggest exporter of US.
This company provides global services and also expand the products and services such as spare parts of the airplane, aircraft, rockets which are very useful for exportation and which mainly increases its market share value as well as its income and the number of employees works under this organization. “B&W” was the first aircraft flew by this company and which got more name and fame. Then Boeing developed jet 737 which was only for 100 passengers. It produced the number of bombers B-47, B-50, and B-52. Boeing also creates 747 for passengers and provides to them lots of facilities because their main target is to achieve more fame as well as to increase their market value and diversification and they always meet with new jet airplanes so that they can fulfil and understands the needs of customers.
OBJECTIVE AND SUB-OBJECTIVE OF THE STUDY First of all the Boeing is a multinational corporation which changes the overall airplane industry. So the main objective of this company is to reduce the cost and control the risk of human resources. The company’s main motive is to make new products and more investment in technology so through the technology the organization produce different kind of products which attracts the people and which increase the market share of the organization. For example: Boeing produces some applications for the safety of their passengers which sound very good among all the passengers.
These applications tell us about the weather, different videos regarding surveillance and so on. In subjective study, company will produce new products and which is useful in their business needs and also which are relevant for the customers and users for exportation to increase the market share in the industry.Table of applications:Different application InformationWeather report For example 15 degrees (the weather of flight day)Videos regarding survive How to survive in an airplane crash?How to survive in bad weather and so far?Parachute How to use a parachute in case of the plane crash.How to open it?How can we apply it? OVERVIEW OF THE COMPANYThe Boeing Company creates so many missiles which are very useful for the other companies which used them for their own purposes. This company is very useful for “Military Aircraft Systems” and also support Space, Communication and Security systems.
In 2011 this company was responsible for the income resource of other companies because of the best export system and also greater support for communication aircraft system. In 2018 the Boeing Company made a tallest, unburned rocket which makes the whole company proud. Following is the list of aircraft made by Boeing:Serial no Aircraft name list Year1.
B-737 19672. B-747 19693. B-767 19814. B-777 19945. B-787 20096. F/A-18E/F Super Hornet 2011 BUSINESS VISION AND MISSIONNowadays Boeing is reaching to high stage and now it becomes world’s largest and multiplication organization. The mission of the company is to design new aircraft and other air products, spare parts of the engine so that these products will become valuable so that level of diversification is increasing day by day due to the employee work together and maintain their work level as well as a level of workers also increasing.
The main business needs of every company are:Identify the problem.Plan the project or product.Understand the whole details regarding the product.Work over vision and mission.Communicate about that and the solution of a product Understand customer need and then deploy the solution and then build the product. PROBLEM IDENTIFICATIONOrganizational culture and structure: The Boeing Company develop the number of products and the structure identifies the business development, communication, technology, and international strategies and so far. The Boeings culture describes the values, quality and customer satisfaction.
The business mainly concentrates on the diversity such as skills, strengths and also the knowledge of workers and the safety, quality, corporation which makes the company more valuable. STRUCTURE CULTUREBest airplanes and spare parts for exportationLaunch new jet engines, missiles, and rocketsReduce cost according to customer needSafety and support the customer Customer satisfactionProduct and servicesEXTERNAL ENVIRONMENT FORCES: PEST ISSUESPEST FRAMEWORK: In this framework, it tells us about the external environment of the company. PEST means Political, Economical, Social and Technological.
In the political environment the legal issues, rules, and regulations in the airplane industry, reduce cost, customer’s needs are more important. In the economical environment the credit to global industry, fuel prices as well as change the rates of products are matter. In the social environment the basic demands, understand the industrial problems and satisfaction of customers and lastly in technological environment the design, planning of new aircraft and good materials as well as new innovations and so far. The following is the chart of pest analysis:NEW DESIGNS OF AIRCRAFTSNEW INNOVATIONSTECHNOLOGICAL ENVIRONMENTSTRONG TECHNOLOGY, WIFI, INTERNETDEMANDS AND SATISFACTION OF CUSTOMERSSOCIAL ENVIRONMENTFUEL PRICES, RATES, AND CASHFINANCIAL RECORD AND FINES ECONOMIC ENVIRONMENTREDUCE WAGES AND CUSTOMER NEEDSRULES AND REGULATIONSPOLITICAL ENVIRONMENT TECHNOLOGICAL RESOURCESTechnology is growing nowadays and with the help of technical gadgets people can do everything anywhere or everywhere for e.g. mobile phone it is like a small tablet in our pocket and this is the best role of technology because this gadget is really helpful in offices, businesses and far places.
Boeing made so many technical devices which are used in jet engines, missiles, rockets and also this company export these products and increase its market share value and making good relationships with another company. With the help of new technology Boeing will prepare new products according to the government policies and shares, customers demanding, business needs. The Boeing creating the best technology in three different fields:Air transport system.Environmental support, products, security and services.Energy resources which reduce pollution and other negative effects on the environment.Previously, the Boeing makes sure that the product is relevant or not so it will produce in different ways so that it is used by everyone for example: for producing aircraft the main important thing is design, planning, structure design and communication, environmental test, aircraft services, and support, eventually production.TECHNOLOGICAL RESOURCE TESTING PLANPRODUCT DESIGN AND PLANNING BUILDCOMMUNICATION OF STRUCTURE AND PRODUCTION TEST AND REVIEWENVIRONMENTAL TEST AND SERVICES AND SUPPORT DEPLOY PRODUCTION OF PRODUCT INTERNATIONAL CHALLENGESBoeing is an international company which accepts number of international challenges and the Boeing Company have close and strong relationships with stakeholders as well as with different 150 countries customers because mainly as an internationally it produces something different products and it expands the business as global so that’s why it accepts difficult faces and challenges and the competition is increasing day by day and the employees, sales, marketing, and brands have also become greater in size.
The table of revenue of the company is as follows:Year Company Revenue1990-1993 $27,595,000,000-$25,438,000,0001994-1997 $21,924,000,000-$45,800,000,0001998-2001 $56,154,000,000-$58,198,000,0002002-2005 $54,069,000,000-$54,845,000,0002006-2009 $61,530,000,000-$68,281,000,0002010-2013 $64,306,000,000-$86,623,000,0002014-2017 $90,672,000,000-$93,392,000,000 BODY/DISCUSSION Be able to link following theoretical framework to evaluate Boeing Company internationally:Multinational strategies: There are four strategic choices for multinational enterprises:Advantages:Home country based advantages of Boeing: The Boeing’s home country is Washington which has greatly impacts the airplane industry because it builds and analyze so many successful 1400 aircrafts as well as 90% commercial planes and this state offers to different countries for starting the new business and create good relationships with them because the production capacity of this company is more and it reaches to the new competitive stage. Washington produce new biggest plane in the world and it has largest industries which are as follows:S.NO ORGANISATION NAME EMPLOYMENT REVENUE1.
The Boeing CO. 150,000 94 billion2. Zodiac Aerospace 35,000 6 billion3.
Aviation Technical Services 1,670 360 billion4. AIM Aerospace lnc. 1,050 130 billion5. Esterline Technologies Corp. 13,752 1.99billionMaximize local responsibility: First of all if the company maximal its localize responsibility and starts from its local level then reaching to another countries and it extremes the level of market price because firstly the company do the more concentration on the local people believe which is really very important for all the companies because the local people when interested then product will be more social and it increases the level of diversification as well as the people and local industries interest then the company deals with local companies and then will start to export and import their products. For Example: Washington firstly started by its own industries and then started to exports its new products to U.S AND CHICAGO which play the greater role for exporting best aircraft products.
Its market value is 359.80 in the aerospace industry and its income in 2017 was 10.278 billion and in 2018 the numbers of employees are 141,322. The graph of sales per employee over time and the number of sales from 1990 to 1995 was 200000 and in the year 2000 it suddenly started increase and reached to 300000 and in 2005 to 2010 it was growing by 400000 and till 2020 it will reach near to 700000.LOW-COST ADVANTAGES: The low wages plays the major role among customers because in the business the first and foremost rule is to reduce the product cost because due to this the company wages and financial conditions reach to the maximum point. The advantages are:1.11 Increases the number of customers.1.
12 Maximum production because due to low cost the more products will be stolen.1.13 Maximise the sales and financial conditions of the company.1.
14 Fabricate new brands according to customer demand.1.15 Local market shares increasing due to the purchasing of products by local industries.DISADVANTAGES:High cost due to the duplicate products because some companies produce duplicate spare parts as well as some aircraft products and increase the rates of the products and it creates some external environment problems and lack of local responsibility which lows the sales of the company.DIFFICULT IMPLEMENTDUPLICITY OF PRODUCTSHIGH COST OF PRODUCTSLACK OF RESPONSIBILITYREDUCE SALESGEOGRAPHIC MULTINATIONAL REPLICATORSBoeing is related to one combination that is multinational replicators because it has so many products which are mostly related to each other and these products help to maintain the economic scale as well as its effects on market share of Boeing Corporation. Boeing sold so many airplanes and products to military and according to Rumerman in 2003 Boeing had done the new technology in military and civilian aircrafts which were the big innovation and these two airplanes are multinational replicators because their products are unique such as their jet engine and other products are related and these related airplanes increased the market share of Boeing company because so many industries bought these airplanes as well as their products which increase the economy scope of Boeing company.
The airplanes sold by Boeing are increasing day by day. CO-OPERATE SOCIAL RESPONSIBILITY:In this strategy, there is one important based co-operation that is industry-based. The industry-based consideration we can explain the competition between two industries. In resource-based consideration, we can apply the VRIO framework.
These frameworks described the industrial field as a globalized industry and its level of competition and social responsibility. The bargaining power of suppliers is more due to the competitive industry and this company supplies so many manufactured products which helps to increase the bargaining power of suppliers and if we talk about the bargaining power of customers then it is also increasing because it sells so many products with reduced cost so the bargaining power of buyers is increasing for example: Boeing jet engines in localized industry sold so many products in fewer wages which results in the higher power of buyers.INDUSTRY BASED CONSIDERATION: Competitive industries: There is a hard competition between two companies Boeing and Airbus. Both industries are globalized and the market share of Airbus is more as compared to Boeing and both industries produce so many products and increase the diversification level and both companies manufacture so many aircraft, jet engines and so far. The numbers of aircraft ordered between both companies are as follows and this bar graph represents the order in units between both Airbus and Boeing.The order of Airbus is more than that of Boeing Company. There is a 45% market for Airbus and 43% of the Boeing. As we can see in the graph the orders of Airbus in all the years are greater than that of Boeing Company.
So it proves that the market value of Airbus is increasing year by year.SOCIAL RESPONSIBILITY:SOCIAL RESPONSIBLITYINDUSTRY-BASEDBARGAINING POWER OF BYERS AND SUPPLIERSCOMPETITION INDUSTRYSCOPE AND SCALE OF INDUSTRY OWNERSHIP STRATEGIES:Firstly the ownership strategies related to owners who introduced about the whole business and also handle the employees as well as the requirements regarding the project and give advice about the project. TESTING, COMMUNICATION AND SORT OUT THE PROBLEMBOARD OF DIRECTORSMANAGERS OWNERCOMPANY PROJECTDIFFERENT KIND OF OWNERSHIP:CONCENTRATED OWNERSHIP.DIFFUSED OWNERSHIP.FAMILY OWNERSHIP.STATE OWNERSHIP.
CONCENTRATED OWNERSHIP: In this ownership, the founders of Boeing company owners start the firm and then control the whole firm. In this ownership, the owners more concentrate on the workers and customers and they just see how the employees work, experienced employees and also concentrate on work as well as concentrate on workers need which is really very good ownership and helps to run the whole firm.DIFFUSED OWNERSHIP: These are the ownership which is totally opposite to the concentrate firm because in this firm there are small shareholders and do not more concentrate on their work and not properly controls the firms.
The Boeing Company is related to concentrated ownership because the Boeing shareholders are so strong and there are four powerful shareholders are W.JAMES McNerney, JrKevin G. McAllisterGregory D. SmithDennis A. MuilenburgAll these four shareholders are very powerful and mainly concentrate on the Boeing Company.
Firstly the W.JAMES McNerney joined the firm in 2005 until 2016 and his shares are 439,637 and the second shareholder Kevin G. McAllister and his shares of Boeing are 141,222 shares to Boeing Company and the third one is Gregory who is the Chief Financial Officer and he has so many shares to Boeing Company and shares to company 131,501 and the fourth one is Dennis who is the CEO of the company and his shares to the company are 130,004.SHAREHOLDERS SHARES TO BOEING COMPANYW.
JAMES McNerney 439,637Kevin G. McAllister 141,222Gregory D. Smith 139,501Dennis A. Muilenburg 130,004FAMILY AND STATE OWNERSHIP: In family ownership founds the family and controls the interest of family and in state ownership which is controlled by government and the Boeing which is under the government and the government maintains the whole firm and the firm follows the rules and regulations which are implemented by the government and these are known as family and state ownership.CONCLUSIONS AND RECOMMENDATION: First of all I will be recommend that the other companies that make duplicate products and sell them on high cost price so the Boeing make some different logo for that or something differentiation in product so that people know about the originality of product because sometimes the original product is on low cost.Secondly I will suggest that the company will see the society target likewise for low society in which the people don’t afford the products on more prices and in high society there are billionaires who purchase everything that’s why the company make the different kinds of products like for low society they will make low cost product and for high society they make different as well as costly product so that both societies afford the product and due to customers satisfaction it will complete the target and image of the company.Thirdly as internationally it also creates its eco friendly image because the Boeing Company’s sales are less than Airbus so the company will do a survey in which company knows about the cons and pros of the product and it gives them feedback.
Lastly sometimes company sold the products at cheapest price and then Dennis A. Muilenburg