Company OverviewBoeing:Boeing is the worlds leading aerospace company and the largest manufacturer of commercialjetliners and military aircraft combined. Additionally, Boeing designs and manufacturesrotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advancedinformation and communication systems. As a major service provider to NASA, Boeingoperates the Space Shuttle and International Space Station. The company also providesnumerous military and commercial airline support services. Boeing has customers in morethan 90 countries around the world and is one of the largest U.S. exporters in terms of sales. Boeing has a long tradition of aerospace leadership and innovation. We continue to expand our product line and services to meet emerging customer needs. Our broad range of capabilities includes creating new, more efficient members of our commercial airplane family; integrating military platforms, defense systems and the war fighter through network-centric operations; creating advanced technology solutions that reach across business units; e-enabling airplanes and providing connectivity on moving platforms; and arranging financing solutions for our customers.Headquartered in Chicago, Boeing employs more than 160,000 people across the UnitedStates and in 70 countries. This represents one of the most diverse, talented and innovativeworkforces anywhere. More than 83,800 of our people hold college degrees--including nearly29,000 advanced degrees--in virtually every business and technical field from approximately2,800 colleges and universities worldwide. Our enterprise also leverages the talents ofhundreds of thousands more skilled people working for Boeing suppliers worldwide.The purpose of the Ethics and Business Conduct program is to: • Communicate the Boeing Values and standards of ethical business conduct to employees • Inform employees of company policies and procedures regarding ethical business conduct • Establish companywide processes to assist employees in obtaining guidance and resolving questions regarding compliance with the companys standards of conduct and the Boeing Values • Establish companywide criteria for ethics education and awareness programs
History:This site describes the legacy of The Boeing Company. It tracks the development of thecompanies that merged to become a single enterprise as the twentieth century ended.Workers at these companies built passenger planes, helicopters, warbirds and missiles,satellites and spacecraft. They sent astronauts to the moon and brought cultures together inharmony aboard the International Space Station. Their inventions blazed the trail for todaysnew technologies.“Choose your takeoff point from the links on this page and join us as we push the envelope oftime and space. The Boeing Airplane Co.... First Flight”They are trustees of a veritable revolution that is taking place once more in the economic,social, and political fabric with the advent of this new speed medium. -- William BoeingConrad Westervelt was posted east before the plane was finished. William Boeing continuedthe project and, in 1916, completed two B & Ws. When it was time for the B & Ws firstflight, the pilot was late. Boeing grew impatient and took the controls himself. As the pilotrushed to the hangar, he saw Boeing taxi to the end of the lake, turn, gun the engine and liftoff for a quarter-mile hop. Although the loss of Westervelt was a setback, it did not affectBoeings commitment to his fledgling company. On July 15, 1916, Boeing incorporated hisairplane manufacturing business as Pacific Aero Products Co.; a year later, he changed thename to the Boeing Airplane Co.Boeing retained Tsu Wong, one of the few aeronauticalengineers in the country, to design new planes for the completely unknown West Coastenterprise and paid for a wind tunnel at the University of Washington, so the school couldoffer courses in aeronautics. He also hired Claire Egtvedt and Phil Johnson, UW engineeringschool seniors, each of whom would later become president of the company. In 1917, the 28-person payroll also included pilots, carpenters, boat builders and seamstresses. The lowestwage was 14 cents an hour, while the companys top pilots made $200 to $300 a month.When the B & W did not sell, Boeing used his own financial resources to guarantee a loan tocover all wages -- a total of about $700 a week.DiversityDiversity and inclusion are part of Boeings values at the highest level. Having diverseemployees, business partners and community relationships is vital to creating advancedaerospace products and services for our diverse customers around the world.The companys commitment to diversity means providing a work environment for allemployees that is welcoming, respectful and engaging, with opportunities for personal andprofessional development. This in turn increases productivity, quality, creativity andinnovation.Boeing has a formal, companywide diversity strategy, mission and goals, which guide avariety of internal programs and events. Our business excellence reaches new heights everyday ... powered by Boeing people. Diversity Team
The Diversity professionals and specialists at Boeing cover Affirmative Action, CulturalDiversity and Inclusion, and Equal Employment Opportunity. The team works to strengthenan environment that values and leverages multiple perspectives, experiences and capabilitiesby driving the integration of diversity, equity and fairness into all practices and processes.This inclusive and engaging environment, in turn, helps employees achieve their fullpotential.Joyce E. Tucker is the vice president ofGlobal Diversity & Employee Rights for TheBoeing Company. In that role, she isresponsible for overseeing implementation ofinnovative initiatives and compliance acrossthe companys Affirmative Action, CulturalDiversity and Inclusion, and EqualEmployment Opportunity (EEO) programs.Tucker is a nationally recognized expert inEEO and affirmative action in both the publicand private sectors. Former President GeorgeH. W. Bush appointed Tucker asCommissioner of the U.S. Equal EmploymentOpportunity Commission (EEOC), where she served from 1990 to 1996. Prior to leading theEEOC, she was Illinois first Department of Human Rights director and served for ten yearsin the Illinois Governors cabinet.In 2001, Tucker was appointed by President George W. Bush to serve on the White HouseInitiative Advisory Board for Historically Black Colleges and Universities.Programs and Events: Internal programs and events are designed to work together tosupport diversity and inclusion throughout the year. Key diversity programs and events include: training, heritage month commemorations, diversity summits and mentoring programs. Training: Training is offered on a wide range of topics including: awareness of cultural, gender and international sensitivities, avoiding stereotypes and micro-inequities, understanding generational differences, and how to positively impact culture change. Heritage Month Commemorations -- Heritage month commemorations are held companywide to recognize and promote awareness about different cultures and experiences, to encourage employee involvement, and to develop a diverse and inclusive work environment. Diversity Summits -- During the year, Boeing holdsdiversity summits that are designed to underscore Boeings commitment to diversity andprovide Boeing attendees with cutting-edge, skill-based training in diversity and EEOcompliance.
Mentoring Programs -- Boeing has a companywide Mentoring Program at two levels:Enterprise Executive Mentoring (for executives and middle managers) and EnterpriseMentoring (for managers, team leaders and others), that include multicultural discussiontools.Boeing provides a variety of other mentoring programs that are: • program-based, • job/profession-based, and • site-based,As well as mentoring programs sponsored by Affinity Groups.Recruiting -- Boeing has an active recruitment program to identify and attract diverse talentthrough college recruiting, as well as targeted diversity and professional recruiting. Activitiesinclude: hosting Boeing-sponsored job fairs, participating in events and conferences wherepotential candidates are located, on-campus recruiting at Historically Black Colleges andUniversities and Minority Serving Institutions, and placing recruitment advertising in diversemedia.
Selling Technique:Boeing is the worlds leading aerospace company and the largest combined manufacturer ofcommercial jetliners and military aircraft. With additional capabilities in rotorcraft, electronicand defense systems, missiles, rocket engines, satellites, launch vehicles and advancedinformation and communication systems, the companys reach extends to customers in 145countries. 1. Boeing Commercial AirplanesBoeing has been the premier manufacturer of commercial jetliners for more than 40 years.With the merger of Boeing and McDonnell Douglas in 1997, Boeings leadership incommercial jets, joined with the lineage of Douglas airplanes, gives the combined company a70-year heritage of leadership in commercial aviation. Today, the main commercial productsare the 737, 747, 767 and 777 families of airplanes and the Boeing Business Jet. New productdevelopment efforts are focused on the Boeing 787 Dreamliner, and the 747-8. The companyhas nearly 12,000 commercial jetliners in service worldwide, which is roughly 75 percent ofthe world fleet. Through Boeing Commercial Aviation Services, the company providesunsurpassed, around-the-clock technical support to help operators maintain their airplanes inpeak operating condition. Commercial Aviation Services offers a full range of world-classengineering, modification, logistics and information services to its global customer base,which includes the worlds passenger and cargo airlines, as well as maintenance, repair andoverhaul facilities. Boeing also trains maintenance and flight crews in the 100-seat-and-aboveairliner market through Alteon, the worlds largest and most comprehensive provider ofairline training.Boeing Commercial Airplanes is the worlds premier commercial jetliner manufacturer -- • because of its complete focus on airplane operators and the passengers they serve.The Boeing family of products and services -- • deliver superior design, efficiency and support to airline customers and allow passengers to fly where they want to go, when they want to go.Commercial Airplanes is headquartered in Renton, Wash., under the leadership of Presidentand Chief Executive Officer Scott Carson.Customers who choose Boeing get more than great airplanes. They get a partner they can relyon to help them succeed. Boeing Commercial Aviation Services deploys the broadest array ofsupport resources to keep customers airplanes where they should be -- in the air, earningrevenue. • Global Customer Support: Boeing has developed a worldwide infrastructure to support airline schedules, resolve technical difficulties, provide quick access to technical information and deliver vital products and services when and where theyre needed. • Material Management and Spares: Boeing operates the aviation industrys most comprehensive spare-parts sales and distribution network, maintaining inventory for about 500,000 different types of parts to support the worldwide fleet.
• Maintenance and Engineering Services: Commercial Aviation Services develops, manages and delivers the vast amount of technical information needed for fleet maintenance and engineering support. • Fleet Enhancements and Modifications: Commercial Aviation Services can help airlines modify aircraft configurations, enhance fleet performance and improve cabin amenities. • Flight Operations Support: Commercial Aviation Services provides full support for airline flight operations, including innovative information-management solutions and a global training network. Offerings include flight training & technical data publications such as flight manuals, dispatch deviation guides, master minimum equipment lists, and other related documents, many of which are available through MyBoeingFleet. We also provide flight operations engineering support, along with simulator data support. 2. Boeing Integrated Defense SystemsBoeing Integrated Defense Systems (IDS) provides end-to-end services for large-scalesystems that enhance air-, land-, sea- and space-based platforms for global military,government and commercial customers. In addition to designing, producing, modifying andsupporting fighters, bombers, transports, rotorcraft, aerial refuelers, missiles, munitions andspacecraft for military, civil and commercial use, IDS is developing enhanced capabilitiesthrough network-centric operations, communications and intelligence, surveillance andreconnaissance technologies. IDS also supports the U.S. government as a system integratoron several programs of national significance -- NASAs space shuttle and International SpaceStation programs, the Missile Defense Agencys Ground-Based Midcourse Defense program,the Armys Future Combat Systems program and SBInet, a critical component of the SecureBorder Initiative managed by the Department of Homeland Security.It combines weapons and aircraft capabilities, intelligence and surveillance systems,communications architectures and extensive large-scale integration expertise. IDS has threecapabilities-driven businesses -- Precision Engagement and Mobility Systems, Network andSpace Systems, and Support Systems -- and an advanced technology developmentorganization, Advanced Systems.The Boeing Integrated Defense Systems strategy is to understand the enduring needs ofcustomers and provide value-added solutions to meet their requirements. The strategy
includes understanding the art of using current and emerging technologies to improve thecapabilities of existing products and delivering new solutions. 3. Boeing CapitalBoeing Capital Corporation is aglobal provider of innovativefinancing solutions. Its primarymission is to support the otherBoeing business units byarranging, structuring and/orproviding financing to assist inthe sale and delivery of Boeingproducts and services. A whollyowned subsidiary of The BoeingCompany, Boeing Capital provides comprehensive customer financing support, primarilyutilizing third-party financing, while aggressively managing risk and delivering strongfinancial performance. 4. Phantom WorksPhantom Works is the advanced research and development unit at Boeing and the catalyst ofinnovation for the Boeing enterprise. At Phantom Works - the R&D unit of The BoeingCompany - engineers are defining the future of aerospace. These engineers are developing theadvanced technologies, processes and systems that will turn future possibilities into reality. 5. Shared Services Group The Boeing Company Shared Services Group, or SSG, provides the companys business units and Corporate Offices with innovative and effective common services that support the competitive design and manufacture of aerospace and defense products. The group provides a broad range of services worldwide, including facilities services, employee benefits and services, recruitment, wellness programs, enterprise help desk, security, fire protection, site operations, disaster preparedness, construction,reclamation, conservation programs, virtual workplace, creative services, transportation,
business continuity and the purchase of all non-production goods and services. It also offerscomprehensive travel services to Boeing employees and corporate customers through theBoeing Travel Management Company. In addition, Shared Services Group manages the saleand acquisition of all leased and owned property through the Boeing Realty. By integratingservices, Shared Services Group delivers greater value, creates "lean" processes andoperations, leverages buying power and simplifies access to services for all of Boeing.Engineering, Operations & TechnologyBoeing Engineering, Operations & Technology supports Boeings business units and growthstrategy by providing the right people, technologies, processes and performance at the righttime and in the right place across the company worldwide. This strategy is delivered invarious ways by the primary organizational groups -- Phantom Works, Intellectual PropertyManagement, and Information Technology, and its leadership role in the Engineering,Operations, Quality, and Information Technology process councils. Through all its activities,Engineering, Operations & Technology helps ensure the future success of Boeing by winningstrategic new programs, providing innovative technology and process solutions, transformingBoeing into a global network-centric enterprise, enhancing and protecting the companysintellectual capital, and fostering a culture of innovation.Corporate Governance The Boeing Companys business is conducted by its employees, managers and corporate officers led by the chief executive officer, with oversight from the Board of Directors. The Boards Governance, Organization and Nominating Committee periodically reviews the Companys corporate governance principles and current practices. The Board and the corporate officers recognize that thelong-term interests of the company are advanced when they are responsive to the concerns ofcommunities, customers, employees, public officials, shareholders and suppliers.Additionally, the Board has adopted a Code of Ethical Business Conduct to focus the Boardand each Director on areas of ethical risk, provide guidance to help them continue toeffectively recognize and deal with ethical issues, enhance existing mechanisms to continuethe reporting of unethical conduct, and help to continue to foster and sustain a culture ofhonesty and accountability.Corporate SponsorshipThe emphasis of the Boeing corporate sponsorship program is on building long-termpartnerships by supporting a select number of events and activities that resonate with theBoeing business and brand strategies.
Evaluation ProcessOrganizations are welcome to submit unsolicited sponsorship proposals to Boeing. Boeingalso proactively seeks partnerships with appropriate potential strategic partners.For detailed information on submitting sponsorship proposals to Boeing, please refer toApplication Process and Timing.All sponsorship proposals, whether solicited or unsolicited, go through the following process: • Proposals are received by Boeing Corporate Communications. • Boeing Corporate Communications performs a preliminary review based on the Sponsorship Evaluation Criteria. • If Boeing Corporate Communications staff considers the proposal to be a potential fit, they will share the proposal with a team of managers from across the organization that have responsibility for developing sponsorship programs. • This team reviews the proposed activitys geographic location, scope, and subject matter and does an in-depth review according to the Sponsorship Evaluation Criteria to determine the fit between the proposal and Boeings brand and sponsorship strategy.Following this process helps ensure that proposals receive careful consideration and timelyresponses.Evaluation CriteriaSponsorship proposals are evaluated against six general criteria. These criteria have beendeveloped to ensure that Boeing establishes sponsorship relationships that will mutuallybenefit Boeing and the receiving organization.Proposals are evaluated for: • Tangible benefits associated with the partnership. • Opportunity to create long-term value. • Ability to reach targeted audiences and build relationships. • Positive exposure for the Boeing brand. • Potential to be leveraged with additional resource investment. • Potential for long-term, sustainable partnership or relationship.For detailed information on applying for corporate sponsorship of events and activities thatmeet these criteria, please see Application Process and Timing.Eligible ActivitiesView Current Sponsorships to see examples of activities that meet the evaluation criteria.Ineligible ActivitiesWe regret that we are unable to support the following types of activities because they do notmeet the criteria weve set for our corporate sponsorship program.
• Local sports organizations, such as Little League. • Charitable fundraisers. • Requests that benefit an individual person or family. • Auto racing or daredevil sports. • Local events in areas without Boeing facilities. • Religious activities, in whole or in part, for the purpose of furthering religious doctrine. • Travel expenses. • Door prizes or raffles. • School-affiliated orchestras, bands, choirs, drama groups, yearbooks, class parties, or class or team projects. • General operating expenses. • Political candidates or organizations. • Boeing affinity groups.In most cases, the following activities do not meet our corporate sponsorship criteria: • Film or documentary productions. • Memorials or endowments. • Agency- or school-sponsored walkathons, athletic events, or athletic group sponsorships. • U.S. hospitals or medical research.Current SponsorshipsThe following are examples of sponsorships currently supported by Boeing within the UnitedStates and abroad:Bill Boeing Theatre, Royal Aeronautical Society • Sponsored refurbishment of the lecture hall for the Royal Aeronautical Society in London.Chicago Air & Water Show • Annual summer event drawing more than 2 million people to Chicagos lakefront for a two-day air show.Chicago Bears • Five-year sponsorship agreement that includes presenting sponsorship of Veterans Day game at Soldier Field in Chicago and sponsorship of National Anthem at all home games.
Everett AquaSox Minor League Baseball Team • Sponsoring Kids Appreciation Night in Everett, Washington, the home of Boeings large airplane manufacturing facilities. First 1,000 kids receive a specially designed t- shirt and CD from Boeing that focus on the "Science of Flight"The John F. Kennedy Center for the Performing Arts • Presenting sponsor of the Kennedy Centers Annual Gala Weekend in April, 2004 - 2008 • Presenting sponsor of the Kennedy Centers Annual Honors Week in December, 2004 - 2008Museum of Flight • Partnership in the development of Boeing Pavilion to provide an in-depth look at the companys rich history and exciting future.National Flight Interpretive Center • Partnership with the Snohomish County (Washington) Public Facility District, Paine Field and the Museum of Flight to develop a new aviation interpretive center featuring the Boeing Tour Center.SEAFAIR Festival • Annual summer event in Seattle, which Boeing has sponsored since its inception in 1951 (July 8 - August 8). • More than 1.5 million spectators and television viewers for the Hydroplane Race/Air Show and Torchlight parade. • In-kind support to Blue Angels for Air Show and sponsorship of Torchlight Parade and Community Events leading up to Race weekend and the Air Show.Seattle Art Museum • A presenting sponsor of Spain in the Age of Exploration 1492 - 1819 exhibit co- organized by the SAM and the Patrimonio National (October 16, 2004 - January 2, 2005). • Partner with the museum on teacher and student events, including a possible exchange program with our Boeing Technical Center in Madrid.Seattle Mariners • Sign featuring Boeing signature on right field wall (behind superstar Ichiro Suzuki). • Community outreach program, including annual joint grant to Puget Sound Little League organization.
USO-Metro (United Services Organization) • Sponsorship of annual awards dinner and golf classic for support of service men and women in the D.C. Metro areaApplication ProcessOrganizations are welcome to submit letters of inquiry to Boeing online by clicking here.Please note that because of the volume of requests that we receive we can no longer acceptsponsorship requests by telephone, fax, mail, email or delivery. In order to be consideredfor a sponsorship, applicants must first submit a letter of inquiry and then be invited to submitmore detailed information.Before submitting any inquiry, be sure to review our sponsorship evaluation criteria.TimingProposals are reviewed on a regular basis. The requesting organization should hear fromBoeing within two to six weeks of receipt of the inquiry. If there is a need for additionalinformation, Boeing will contact the organization directly.Applicants must allow 6 months to 1 year between application and the sponsored event toprovide time for negotiating agreements and to enable Boeing to appropriately plan ourparticipation.The Boeing Company Code of Basic Working Conditions and Human RightsThis Code of Basic Working Conditions and Human Rights represents the commitment ofThe Boeing Company to fundamental standards that make Boeing a good place to work.People are Boeings most vital asset. The individual and collective contributions of Boeingpeople at all levels are essential to the success of the Company. In recognition of this, Boeinghas developed policies and practices designed to assure that our employees enjoy theprotections afforded by the concepts set forth in this Code.Boeing is committed to the protection and advancement of human rights in its worldwideoperations, and the concepts in this Code are generally derived from Boeing policies andpractices already in place, but which have not previously been summarized in a singledocument. While parts of this Code reflect our review of working standards and human rightsconcepts advanced by other groups, such as the International Labor Organization, theUniversal Declaration of Human Rights, and the Global Sullivan Principles, this Coderepresents Boeings statement of its own standards on these subjects, rather than those of athird party.Boeings worldwide operations take place in an increasingly diverse universe, socircumstances can arise where legal, regulatory or other requirements may necessitateapplying or interpreting this Code in ways that assure compliance with applicable local law.
In any event, however, we believe that the concepts in this Code represent importantfundamental values that should underlie all aspects of the employment relationship.NON DISCRIMINATION AND HARASSMENTIt is the policy of The Boeing Company to attract and retain the best qualified peopleavailable without regard to race, color, religion, national origin, gender, sexual orientation,gender identity, age, physical or mental disability, or veteran status. Our nondiscriminationpolicy applies to applicants as well as employees and covers all terms and conditions ofemployment, including recruiting, hiring, transfers, promotions, terminations, compensationand benefits. Discrimination or harassment based on any of the above factors is prohibited, asis retaliation against a person who has made a complaint or given information regardingpossible violations of this policy.FREEDOM OF ASSOCIATIONThey recognize and respect employee rights to join or not join any lawful organization oftheir own choosing. They are committed to complying with laws pertaining to freedom ofassociation, privacy and collective bargaining.ENVIRONMENT, HEALTH AND SAFETYThey are committed to providing employees with a safe and healthful workplace, protectingthe environment wherever we conduct business and striving for excellence in safety, healthand environment stewardship.WORK ENVIRONMENT AND COMPENSATIONThey are committed to promoting a work environment that fosters communication,productivity, creativity, teamwork, and employee engagement. As a global company, we seekto provide employees with compensation and benefits that are fair and equitable for the typeof work and geographic location (local market) where the work is being performed, andcompetitive with other world-class companies.HOURS OF WORK AND WORK SCHEDULINGEach Boeing organization establishes work shifts and schedules as appropriate to meetbusiness needs and to comply with applicable laws and/or collective bargaining agreements.
EXPECTATIONS FOR OUR SUPPLIERSThey are committed to the highest standards of ethical and business conduct as it relates tothe procurement of goods and services. Their relationships with their third party providers,including their consultants and contract labor, are defined by contracts, which are based onlawful, ethical, fair, and efficient practices.FORCED LABOR AND CHILD LABORBoeing believes that the employment relationship should be voluntary, and the terms ofemployment must comply with applicable laws and regulations. They are therefore opposedto forced labor and child labor and are committed to complying with applicable lawsprohibiting such exploitation.Target Market CoverageA company of their size and scope doesnt succeed by resting on their laurels. At Boeingtheyre constantly re-examining their strengths and processes to build a company as strongand vital as its heritage.Their future success is based on a three-pronged strategy: • Run healthy core businesses • Leverage our strengths into new products and services • Open new frontiersIn order to put this strategy into action, they considered where they are today, and where theywould like to be tomorrow.Boeings core competencies are: • Detailed customer knowledge and focus: They will seek to understand, anticipate and be responsive to our customers needs. • Large-scale systems integration: They will continuously develop, advance, and protect the technical excellence that allows us to integrate effectively the systems we design and produce. • Lean enterprise: Their entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.
ValuesAt Boeing, They have committed to a set of core values that not only define who They are,but serve as guideposts to help them become the company they d like to be. They truly livethese values every day. Here they are:LeadershipThey will be a world-class leader in every aspect of our business -- in developing our teamleadership skills at every level; in their management performance; in the way they design,build and support our products; and in their financial results.IntegrityThey will always take the high road by practicing the highest ethical standards and byhonoring our commitments. They will take personal responsibility for their actions and treateveryone fairly and with trust and respect.QualityThey will strive for continuous quality improvement in all that we do, so that They will rankamong the world s premier industrial firms in customer, employee and communitysatisfaction.Customer satisfactionSatisfied customers are essential to their success. They will achieve total customersatisfaction by understanding what the customer wants and delivering it flawlessly.People working togetherThey recognize that our strength and our competitive advantage is - and always will be-people. They will continually learn, and share ideas and knowledge. They will encouragecooperative efforts at every level and across all activities in our company.A diverse and involved teamThey value the skills, strengths and perspectives of our diverse team. They will foster aparticipatory workplace that enables people to get involved in making decisions about theirwork that advance their common business objectives.Good corporate citizenshipWe will provide a safe workplace and protect the environment. We will promote the healthand well-being of Boeing people and their families. They will work with their communitiesby volunteering and financially supporting education and other worthy causes.
Enhancing shareholder valueTheir business must produce a profit, and we must generate superior returns on the assetsentrusted to us by their shareholders. They will ensure our success by satisfying theircustomers and increasing shareholder value.Boeing is a company of great people in one of the most exciting industries in the world. Ourheritage mirrors the very heritage of aviation itself. We are positioned to be the best in theworld. Together, working according to the principles we believe in, we will be the best in theworld.Sales Growth:New programs and full production lines at Commercial Airplanes are the biggest drivers ofour growth, and international sales—always vital to BCA—provide strong growth potential atIDS. Sharpening our culture of learning and sharing is as key to our growth as it is to ourproductivity— especially in those markets where an integrated Boeing brings strengths thatothers will find difficult to match. Military derivatives of commercial airplanes, for example,have become a big and increasingly important market for Boeing. We expect this businessto grow at a double-digit annual rate over the next several years. It used to be that commercialairplane airframes were torn apart and retrofitted in order to meet the heavy-duty structuralrequirements of military specifications. Today, 737 airframes destined for the U.S. Navy asreconnaissance and surveillance aircraft are being built alongside 737s for the world’sairlines. Modifications to the aircraft are now being done in-line as opposed to after-the-fact.This is a prime example of the unique advantage, synergy and cost savings our big businessunits bring to our customers. One of our fastest-growing and most profitable business areas isour commercial and military support services. Our growth here will be based on sticking toour strategy of expanding our core business and then moving to logical adjacencies acrossbridges of common cost structure, technology and customers.Growth:Shared Services Group allows business units to focus on profitable growth by providing theinfrastructure services required to run their global operations. The group provides a broadrange of services worldwide, including facilities services, employee benefits and services,staffing, recruitment, wellness programs, enterprise help desk, security, fire protection, siteoperations, disaster preparedness, construction, reclamation, conservation programs, virtualworkplace, creative services, transportation, business continuity and the purchase of all non-production goods and services. It also offers comprehensive travel services to Boeingemployees and corporate customers through the Boeing Travel Management Company. Inaddition, Shared Services Group manages the sale and acquisition of all leased and ownedproperty through the Boeing Realty. By integrating services, Shared Services Group deliversgreater value, creates "lean" processes and operations, leverages buying power and simplifiesaccess to services for all of Boeing.
Research & Development:Phantom Works is the advanced research and development unit and catalyst of innovation forthe Boeing enterprise. It is where dreams about the future of flight and space travel are turnedinto reality.As an element of the Boeing Technology organization, Phantom Works mission is to provideadvanced systems solutions (like advanced homeland security and air traffic management)and breakthrough technologies (like advanced avionics and composite materials) thatsignificantly improve the performance, quality and affordability of aerospace products andservices.Headquartered in St. Louis, Mo., Phantom Works approximately 2,600 employees are spreadacross the enterprise, working virtually together while directly supporting Boeingscommercial, defense, and communications business units. Its more than 375 systems andtechnology projects -- many of which are proprietary -- include those for its externalcustomers (NASA, DOD, FAA, etc.) as well.To efficiently address a broad spectrum of needs, Phantom Works is divided into advancedsystems teams and advanced technology teams. The former tend to focus on addressingspecific new business markets. The advanced technology teams, on the other hand, focus onproviding engineering, information and manufacturing technologies commonly needed by allthe Boeing business units.In both cases, the innovative solutions Phantom Works provides are designed to meet near-and medium-term needs of the business units, as well as longer term competitive needs of thecompany.For meeting near- and medium -term needs, Phantom Works has technology "thrusts"focused on the following: advanced platform systems; materials, structures, andmanufacturing technology; lean and efficient design processes and tools; support andservices; and network centric operations. Technologies from these thrusts are transitionedinto both current and advanced military and commercial programs to help reduce cycle timeand cost while improving quality and performance.To enable the development of system solutions that meet medium and longer term needs,Phantom Works has also identified and is working on a set of critical technologies itappropriately classifies as "enabling" technologies. While most of these are of a proprietarynature, they generally fall into such categories as intelligent systems, multifunctionalstructures, advanced materials and processes, and more.For the more distant future, Phantom Works also develops "new frontiers" concepts using adisciplined process that identifies product lines or services not listed in the long-rang plans ofthe business units but having potential for significant growth. Such futuristic concepts includea personal transportation system involving auto-piloted flying "cars" in an advanced airtraffic controlled environment.
To achieve all these ambitious goals, Phantom Works collaborates not only with its internaland external customers, but also with universities, research agencies and other highSWOT Analysis: Strengths: •Better Quality Service •End-user sales control and direction. •Spare manufacturing capacity. •Direct delivery capability. •Can serve from existing sites. •Management is committed and confident Weaknesses: •Unawareness of people in comparison with other airlines •Weak promotional effort. • Less Availability of tickets and services. Opportunities: • Profit margins will be good. • End-users respond to new ideas. • Could extend to overseas. • New specialist applications. • Support core business economies. Threats: • Other Airplane manufacturers like: Airbus and others are giving such an available and low price services. • Vulnerable to reactive attack by major competitors. • Existing core business distribution risk. • Possible downbeat publicity. • Increasing oil prices are one of the main threats for all the airplane manufacturers.
Financial Strategy:Boeing Capital (Creating value through discriminating financing solutions):Boeing Capital Corporation is a global provider of innovative financing solutions. Its primarymission is to support the other Boeing business units by arranging, structuring and/orproviding financing to assist in the sale and delivery of Boeing products and services. Awholly owned subsidiary of The Boeing Company, Boeing Capital provides comprehensivecustomer financing support, primarily utilizing third-party financing, while aggressivelymanaging risk and delivering strong financial performance.With more than three decades of experience in structured financing, leasing, and complexrestructuring and trading, Boeing Capitals team of seasoned professionals provides tailoredfinancing solutions for commercial and military aircraft, satellites and launch vehicles. Thecompanys US$6.5 billion portfolio is comprised of approximately 350 commercial airplanes,which include a broad range of newer, more efficient Boeing products.Organization: Under the leadership of President Walt Skowronski, Boeing Capital hasapproximately 170 employees, located primarily at its headquarters in Renton, Wash.Additional U.S. offices are located in Los Angeles, California, and St. Louis, Missouri, alongwith international offices in Brussels, Hong Kong and Moscow.Boeing Capital offers the advantages of the strength and global reach of The BoeingCompany, along with a team that has unrivaled understanding of the commercial aviationindustry, expertise in creating tailored financing solutions and strong relationships with thefinancial community.
The business unit is divided into two operating groups: Aircraft Financial Services and Space& Defense Financial Services.Aircraft Financial Services: Assists commercial aircraft customers by arranging andstructuring asset-based financing, managing technical assets, and providing a broad range ofefficient financing solutions for Boeing Commercial Airplanes products and services.Expertise and product offerings include backstop commitments, operating leases, financingleases, sale/leasebacks, freighter conversion financing, long- and short-term financing, andsenior and subordinated secured loans.Led by Scott Scherer, vice president and general manager, Aircraft Financial Services worksclosely with Boeing Commercial Airplanes customers to develop aircraft financing solutions.Working with commercial financial institutions, the group is proactively engaged with theU.S. Export-Import Bank and other export credit agencies to ensure availability of adequateand reasonably priced financing for developing customers and regions. Aircraft FinancialServices is playing an integral role, along with the Aviation Working Group, in improving theglobal aircraft financing infrastructure and ratifying the Cape Town Treaty, which will improve the legal framework for international asset- based aircraft financing. The group also is actively engaged to enhance and expand the capital markets by managing a comprehensive investor outreach program that is capturing the financial communitys requirements and ensuring that they understand the Boeing product strategy and the significant value discriminators that differentiate Boeing from its competition. Space & Defense Financial Services: While The Boeing Company has long been in the business ofhelping its space and defense customers arrange financing, Boeing Capitals space anddefense group was formed in 2000 to provide additional focus and expertise in arranging andstructuring financing solutions for government and commercial customers around the world.Vice President Bob Gordon and his group work closely with Boeings Integrated DefenseSystems business unit to help arrange funding for satellites, military transports, tankers androtorcraft. Specialized projects and programs include military-related products, internationaldefense financing, private-public partnerships, project financing, launch vehicles, satellitesand related space systems.Aircraft Financial ServicesThe Boeing Company has incorporated financial services as a key element of its strategy.Boeing Capital Corporation supports this strategy by creating new dimensions in financialsolutions for its commercial aircraft customers. Boeing Capitals Aircraft Financial Servicesgroup assists customers in structuring efficient financing solutions for Boeing CommercialAirplanes products and services. This includes financial alternatives and advice in support ofbundled solutions for all Boeing products and services, including spare parts, modificationand freighter conversions.
As an asset-based financier, the Aircraft Financial Services group, led by Scott Scherer, vicepresident and general manager, specializes in arranging creative finance and lease structures,managing technical assets, and offering a broad range of financing options and solutionsincluding: • Operating leases • Finance leases • Leveraged leasing • Sale/leasebacks • Freighter conversion finance • Long- and short-term financing • Secured loans -- senior and subordinatedHeadquartered in Renton, Wash., the Aircraft Financial Services portfolio approximatesUS$6.5 billion and is comprised primarily of more than 350 commercial airplanes. Thegroups experience and expertise in structuring commercial aircraft financing is coupled withdetailed customer knowledge to address current financing requirements and to shape the future of aircraft finance. Their broad range of financial products is partnered with third-party aircraft capital to expand capital markets and increase the value and stability of aircraft investments. This is done by ensuring that Boeings product strategy, engineering, support and production discipline are responsive to aircraft investors. Through a comprehensive investor outreach program, Boeing Capital is capturing the financial communitys requirements and ensuring that they understand the Boeing product strategy and the significant value discriminators that differentiate Boeing from itscompetition.Working with commercial financial institutions,the group is proactively engaged with the U.S.Export-Import Bank and other export creditagencies to ensure availability of adequate andreasonably priced financing for developingcustomers and regions. Aircraft FinancialServices is playing an integral role, along withthe Aviation Working Group, in improving theglobal aircraft financing infrastructure andratifying the Cape Town Treaty, which willimprove the legal framework for internationalasset-based aircraft financing.What sets Boeing Capital apart from other finance companies is the tremendous benefits itcan provide customers with an ability to leverage resources across all divisions of The Boeing
Company. Additionally, as part of the worlds largest aerospace company, Aircraft FinancialServices possesses significant aircraft knowledge, and technical, pricing, credit, legal and taxexpertise. With nearly 40 years of financing, leasing and complex structure experience,Boeing Capital understands the requirements of its customer best.For more information about the financial services and options available at Aircraft FinancialServices.Cash and cash equivalentsCash and cash equivalents consist of highly liquid instruments ,such as certificates of deposit,time deposits, and other money market instruments, which have original maturities of lessthan three months. We aggregate our cash balances by bank, and reclassify any negativebalances to a liability account presented as a component of accounts payable.InventoriesInventoried costs on commercial aircraft programs and long term contracts include directengineering, production and tooling costs, and applicable overhead, which includes fringebenefits, production related indirect and plant management salaries and plant services, not inexcess of estimated net realizable value. In accordance with industry practice, inventoriedcosts include amounts relating to programs and contracts wit long production cycles, aportion of which is not expected to be realized within one year. Because of the higher unitproduction costs experienced at the beginning of a new airplane program (known as the“learning curve effect”), the actual costs incurred for production of the early units in theprogram will exceed the amount reported as cost of sales for those units. The excess or actualcosts over the amount reported as cost of sales is presented as “deferred production costs,”which are included in inventory along with unamortized tooling costs. Used aircraftpurchased by the Commercial Airplanes segment, commercial spare parts, and general stockmaterials are stated at cost not in excess of net realizable value.Property, plant and equipmentProperty, plant and equipment are recorded at cost, including applicable construction-periodinterest, less accumulated depreciation and are depreciated principally over the followingestimated useful lives: new buildings and land improvements, from 10 to 40 years; and newmachinery and equipment, from 3 to 20 years. The principal methods of depreciation are asfollows: buildings and land improvements, 150% declining balance; and machinery andequipment, sum-of-the-years’ digits. We periodically evaluate the appropriateness ofremaining depreciable lives assigned to long-lived assets subject to a management plan fordisposition. Aircraft financing operating lease equipment is recorded at cost and depreciatedover the term of the lease or projected economic life of the equipment, primarily on astraight-line basis, to an estimated residual or salvage value. We review long-lived assets,which includes property, plant and equipment and operating lease equipment, forimpairments in accordance with SFAS No. 144. Long-lived assets held for sale are stated atthe lower of cost or fair value less cost to sell. Long-lived assets held for use are subject to animpairment assessment whenever events or changes in circumstances indicate that thecarrying amount may not be recoverable. If the carrying value is no longer recoverable basedupon the undiscounted future cash flows of the asset, the amount of the impairment is thedifference between the carrying amount and the fair value of the asset.
InvestmentsWe classify investments as either operating or non-operating. Operating investments arestrategic in nature, which means they are integral components of our operations. Non-operating investments are those we hold for non-strategic purposes. Earnings from operatinginvestments, including our share of income or loss from certain equity method investments,income from cost method investments, and any gain/loss on the disposition of investments,are recorded in ‘Income/(loss) from operating investments, net’. Earnings from non-operatinginvestments, including marketable debt and equity securities, are recorded in ‘Other income,net’ on the ConsolidatedCreating the Future of Flight at BoeingBoeing Commercial Airplanes (BCA) Product Development team is the source for the ideasand products that have changed commercial aviation history. But history is only a startingplace for this diverse, creative team who spend more time thinking about tomorrow thandwelling on the past.The latest concept to leap from the BCA Product Development drawing boards intointernational headlines is the Boeing 787, an all-new airplane concept focused on bringingmore economical solutions to airlines, a better flight experience to passengers and improvedenvironmental performance to the world.And the drawing boards -- which are really high-end computer stations these days -- are stillfull, and the Product Development team is busy working on other ideas such as: • New products for the future. • Derivatives of existing airplanes that will enhance the value of those products. • Features for our current products that continuously improve value and safety. • Services that will help Boeing provide unique solutions. • Tools and technologies that will allow Boeing to remain the worlds aviation leader.Much of what this team works on is considered "sensitive" for competitive reasons. But asproducts or projects reach greater stages of maturity, they are shared outside of the company.Customers, regulators, airports, and suppliers often serve as part of the Product Developmentteam, helping Boeing to understand the long-term needs of the market and the capabilitiesand technologies that will help the company meet those needs.The Product Development team also works cooperatively with other parts of The BoeingCompany team -- most notably Phantom Works -- to be sure that Boeing is always ready torespond to the emerging needs of airlines and passengers around the world.
Recommendation:Though Airbus is, and has been, a very strong competitor. Over the last two years, a lot ofpeople thought they were in trouble. At the most senior levels, clearly they were distracted. But at the lower levels they continued to understand what they needed to do to compete effectively with them. The Power 8 Program they put in place is an example of how they continued to drive Lean ideas back into their production systems. They are going to come out of this current challenge very strong. However, Boeing can’t relax for a minute if they are going to maintain the lead that they built over the last several years. They must do better tomorrow than they are doing today.Conclusion:
During the last 100 years, humans went from walking on Earth to walking on the moon. Theywent from riding horses to flying jet airplanes. With each decade, aviation technologycrossed another frontier, and, with each crossing, the world changed.During the 20th century, five companies charted the course of aerospace history in the UnitedStates. They were the Boeing Airplane Co., Douglas Aircraft Co., McDonnell Aircraft Corp.,North American Aviation and Hughes Aircraft. By the dawning of the new millennium, theyhad joined forces to share a legacy of victory and discovery, cooperation and competition,high adventure and hard struggle.The companies began their journey across the frontiers of aerospace at different times andunder different circumstances. Their paths merged and their contributions are the commonheritage of The Boeing Company today. They have worked very hard to redeveloprelationships with their customers globally, and they have made tremendous progress.There’s no question that a single disappointment, like they’ve had on the 787, can damagethose relationships. The best course of action is to do everything they can to assure that it’s aone-time slip that won’t affect the other programs. Each week they spend a great deal of time in their staff meeting making sure all program managers understand that they must continue to perform flawlessly, meeting commitments that they have made to customers and keeping the promises they have made to employees. It is the only way they know to rebuild trust.