Boeing Industry Analysis Paper

Boeing Industry Analysis Paper
Introduction: We are a subcontracted company of the Boeing Company that our contract is to make
precision engine parts. To meet the growing demand of the market and the out dated equipment we
have in hand now. I am tasked with finding a new power source for our company. The first power
source I Looked at is a Lincoln Precision Tig 375. The next one I took a look at is a Miller Dynasty
350. Application: The use of thinner gauge Ti and Ni alloys is pushing the aircraft engine industry to
ensure high quality welds can be made with lower levels of heat input. Every part we produce goes
through our nondestructive laboratory to test the welds under x–ray or die penetrant. Key Factors 1:
High frequency: With our company being located so close to a local airport we are under strict
guidelines for the use of high frequency during the welding process. ... Show more content on
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3: Energy Savings: Our current machines are an amperage hog. With updating to newer power
sources we hope to be able to cut back on the amperage draw at idle as well as when welding is
being performed. 4: Labor Savings: With every weld we produce having to go through
nondestructive testing its labor intensive processes. When a weld does not pass on the first time the
time and cost it takes to make it right is more than double what it would normally cost. 5: Warranty:
With having to upgrade having a warranty on the power source will be a major role. As our staff will
have to be trained on these newer and more advanced machines we are expecting some
malfunctions. Comparison: 1: High frequency in the Miller Dynasty 350 is only on when you
initiate the arc. This in turn eliminates issues with continuous high frequency. On the Lincoln
Precision Tig 375 side they utilize continuous high frequency to eliminate cross over arc
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Stock Analysis: Boeing Company
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 ... Show more content on Helpwriting.net ...
Analysis of the Return on Equity using DuPont System Table B. Boeing Company DuPont Analysis
of ROE | | | | | | Component | | Definition | | 2010 | 2009 | Tax burden | | Net profit / Pretax profit | |
73% | 76% | Interest burden | | Pretax profit/EBIT | | 0.9 | 0.8 | Profit margin | | EBIT/Sales | | 10% |
4% | Asset turnover | | Sales/Asset | | 0.8 | 0.9 | Leverage | | Assets/Equity | | 24.8 | 29.2 | Using the
Du Pont formula: | | | | | ROE (2010)= | .734X.897X.096X.767X24.789= | | | 120% | ROE (2009)= |
.758X.836X.036X.919X29.160= | | | 62% |
Table B compares the changes in the five components of ROE for the Boeing Company from 2009
to 2010. The tax–burden decreased slightly in 2010 from 2009, thus contributing to the decrease in
the ROE. The interest burden increased slightly in 2010 from 2009, thus contributing to the increase
in the ROE. The profit margin increased significantly in 2010 from 2009, thus contribution to the
increase in the ROE. The asset turnover decreased slightly in 2010 form 2009, thus contributing to
the decrease in the ROE. The financial leverage declined in 2010 from 2009, thus contributing to the
decline in the ROE. Since total increase in interest burden and profit margin was substantially more
than the total decrease in the tax burden,

Analysis Of Boeing And Lockheed Martin
There is a multitude of aerospace manufactures in the business of building airplanes worldwide such
as Boeing and Lockheed Martin. In order to become a global leader in an ultra–competitive market,
such as the aerospace industry, Boeing implements cost reducing initiatives such as lean
manufacturing practices. In order to build a complex item such as an airplane on time and on
budget, a manufacture will require a competent supply chain management system to ensure all the
needed parts are available to the builders. Implementing technology such as automated equipment to
assist in the reduction of human errors and fatigue will reduce costs associated with rework caused
by human error mistakes.
History and background of the organization, also including the types of goods sold and industry in
which the organization operates. The illustrious William E. Boeing founded the remarkable Boeing
Company in the summer of 1916. As a visionary, William Boeing built the foundation of the
company on acts and truths rather than assumptions and guesses (Boeing, 2016b). Utilizing facts
such as measuring process times to complete a manufacturing process enables a business to
benchmark its production efficiency. Utilizing a single–factor productivity formula is a simple and
effective tool which measures productivity by dividing the number of units produced by the number
of labor hours used to complete the task (Heizer & Render, 2014).
The undisputed earning leader in 2015 was Boeing with more

Case Study : Boeing : The Boeing Company Essay
Lauren Miller, Tori Tappero, Gabriel Quintero, Carlos Aguilar Management and Human Resources
301 Professor Aytug 6 June 2015 Boeing: The Boeing Company Table of Contents Company in
Brief (Tori)........................................................................Page 1 Environmental Analysis
(Tori)................................................................Page 1 Macro Environmental
Analysis(Tori)...............................................Page 1 Competitive Environment
Analysis(Lauren)........................................Page 1 Internal Environment
Analysis(Tori).................................................Page 1 Company's
resources(Tori)...................................................Page 1 Company's
culture(Tori)......................................................Page 1 SWOT Analysis
(Lauren)......................................................................Page 1 Strengths
(Lauren).....................................................................Page 1 Weaknesses
(Lauren)..................................................................Page 1 Opportunities
(Lauren)................................................................Page 1 Threats
(Lauren)........................................................................Page 1 Strategic Management
(Carlos)...................................................................................Page 1 Organization Structure
(Carlos)..................................................................................Page 1 Vertical Structure
(Carlos)...............................................................................Page 1 Horizontal Structure
(Carlos)..........................................................................Page 1 Human Resources Management
(Carlos) ...................................................Page 1 Ethical
Issues(Gabriel).........................................................................Page 1 Diversity

Boeing : The Boeing Company Essay
The Boeing Company (NYSE:BA) was founded July 15th, 1916. Boeing is one of the world's
largest producers of aircraft and aerospace systems, producing both commercial jets and defense, as
well as space and security systems. Boeing's operations are extensive and widespread, and can be
located throughout more than 150 countries around the world.
Boeing's products are highly diversified and cater to all sectors within the aviation industry. Some of
Boeing's original products were the result of contracts with the Navy, and bombers that were in use
during World War II. Current products span a wide variety of commercial, defense and space
products. Some of the most well–known commercial airplanes Boeing produces are the 747 and the
737 jetliners. Both of these production lines are over 40 years old and contribute to significant
portions of annual revenues. Boeing also manufactures many different defense aircraft, including
helicopters, airplanes, and weapons systems. Occasionally, Boeing will create parts for spacecraft,
but its main work in space–related products are its satellite systems and global positioning systems.
Boeing has been involved in space–related technologies since 1995.
Boeing's position as a mature, well–established, and financially stable firm provides it with many
competitive advantages. First and foremost, Boeing has been manufacturing airplanes for one
hundred years, contributing to significant brand recognition and loyalty within the customer base.

The History of Boeing Company
Company History:
The Boeing Company is the largest aerospace company in the world, thanks to its 1997 merger with
McDonnell Douglas Corporation and its 1996 purchase of the defense and space units of Rockwell
International Corporation. The corporation is the world 's number one maker of commercial jetliners
and military aircraft. Boeing has more than 9,000 commercial aircraft in service worldwide,
including the 717 through 777 families of jets and the MD–80, MD–90, and MD–11. In the defense
sector, the company makes military aircraft, including fighter, transport, and attack aircraft;
helicopters; and missiles. In addition to its position as the nation 's top NASA contractor––and the
leader of the U.S. industry team for the International ... Show more content on Helpwriting.net ...
Boeing also purchased Varney Airlines, which began operation in 1925 and won almost every mail
contract it applied for until it became overextended and had financial difficulties.
1929–34: 'United ' Era
With the addition of National Air Transport, Boeing 's airline holdings formed the original United
Air Lines. In 1928 all these companies were organized under a holding company called the Boeing
Aircraft and Transportation Company. In 1929 a larger holding company was formed, the United
Aircraft and Transportation Company. Included in this group were the 'United ' airlines and Stout
Airlines; Pratt & Whitney (engines); Boeing, Sikorsky, Northrop, and Stearman (manufacturers);
and Standard Steel Prop and Hamilton Aero Manufacturing (propellers). Boeing was made chairman
of the company and Fred Rentschler of Pratt & Whitney was named president.
Boeing and Rentschler became extremely wealthy in this reorganization by exchanging stock with
the holding company in a method similar to J.P. Morgan 's controversial capital manipulation. They
multiplied their original investments by a factor of as much as 200,000 times. It was, however,
entirely legal at the time. In 1933 the government conducted an investigation of fraud and other
illegal practices in the airline industry. Boeing was called upon to testify and explain his windfall
profits before a Senate investigating

Boeing Strategic Plan
MISSION STATEMENT
Boeings focus is on the practice of eight core company values
Leadership, Integrity, Quality, Customer satisfaction, Employee corp., Diverse and involve team,
Good Corporate citizenship and Enhance shareholder value
STRATEGIC PLAN
Boeing continuously scrutinizes its segments and divisions to ensure alignment with the company
vision
TEN STRATEGY OM DECISIONS
GOODS AND SERVICE DESIGN:
Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners
and defense, space and security systems. Boeing products & services include commercial and
military.
Boeing product line is shaped by two principles:
Building the right airplane: Understanding how airplane operators use airplanes to earn ... Show
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Because the industry is always evolving, Boeing value and encourage lifelong learning. Boeing offer
a verity of HR programs such as:
Tuition reimbursement program
On– and off–site learning programs
Learning Together Program: Provides employees with an industry–leading education and tuition
assistance program

Learning Centers: Webcasts, online courses and multimedia resources
On–the–Job and Familiarization Training
SUPPLY CHAIN MANAGEMENT
Boeing Supply Chain Model
Supplier Management Inbound ( Assembly ( Product Support Outbound
Manage Strategic Suppliers who manage more of the supply chain so Boeing can assemble not
manufacture
Have a limited number of suppliers (13,000) so Boeing could focus on leverage spending, Focus on
partnership, motivate performance and delivery reliability thru all its suppliers around the world.
The objective is to improve aircraft availability and reduce costs according to customer preferences.
INVENTORY AND MAINTENANCE
Boeing is involved in many different sectors of the Airspace manufacturing
1. Delivering commercial airplanes
2. Military Aircraft
3. Network and Space Systems
Boeing use a system called Integrated Management System where it has various contracts with
different suppliers such as Honeywell Aerospace and UFC Aerospace. This allows reducing in
maintenance–related costs of airlines significantly. These companies provide maintenance and spare
parts. The inventory

Management Planning at Boeing Essay
Assignment: Management Planning Paper
Management Theory Practice and Application
With any company, organization, or corporation the first phase of any management is planning. This
phase is very important to any company because many different planning functions and each
planning function create a standard for each of its employees to follow. This paper will discuss the
planning functions of management while looking at the Boeing Company. While looking at the
different planning functions, this paper will also discuss and identify legal, ethical, and social
responsibilities that impact Boeing. It will also show some factors that influence Boeings strategic,
tactical, operational, and contingency planning. Boeing can be considered the ... Show more content
on Helpwriting.net ...
With the company being in the public eye at all times the planners must determine where, when, and
how the product will be used before they begin building, testing, and using the new technologies.
Since Boeing has become such a large company it has had to continuously evaluating the way it
does things to make sure that they are doing the right thing. Boeing also has a legal responsibility to
the military, government, and commercial markets to provide the newest technology available and
get the approval from the United States government before they produce any military technologies
for the foreign government/powers. When Boeing deals with the military they are required and
mandated to keep some equipment specifications classified so that they do not fall into the wrong
hands. If this security is breached Boeing would be held responsible and this could be detrimental to
our homeland security and military. Boeing also has a social responsibility to provide jobs to their
employees and community. "Boeing rightly insists that they cannot be expected to provide jobs for
the life in a fast–changing, global market. But what they can–and should–offer employees, is a tool
kit of portable skills, a high level of training that allows displaced workers to land new jobs"
(McMurdy, 1996 par.8). In some ways Boeing believes by providing the jobs to the community it
places them in an advantage where

Boeing Australia Limited Executive Summary
Boeing Australia Limited – E procurement
Executive Summary
As Russell Menere, I recommend the management of Boeing Australia Limited to follow the
footsteps of Boeing US to adopt and implement cost effective e–Procurement system, which can be
interfaced with the legacy information system as we have IT infrastructure in place that is our core
strength.
Through e–Procurement system we can improve redundancies in the business process and
operations, gain in productivity by upgrading procurement processes. Cost savings by reducing
processing time, rationalization of a large number of BAL suppliers and maintaining relationship
with Key Suppliers. Investing in an e–procurement system BAL would seek short term
improvement tool that would ... Show more content on Helpwriting.net ...
These vendors are to be given a visibility of the order size during the contract period so that they can
weigh their options.
Criteria
The Boeing Company's vision is interpreted according to the organization of the various divisions
who are committed to the corporate vision by keeping customer as center and cost reduction with a
good quality.
Reverse Auction
A reverse auction is an electronic auction where buyers enter requirements, and
Suppliers bid to provide the required goods and services. It is conducted in real–time,
And bidders see the offers of competitive bidders but no the names of the other
Bidders. The bidding prices move downwards as the auction progresses.

Analysis Of Boeing And Lockheed Martin
There are a multitude of aerospace manufactures in the business of building airplanes worldwide
such as Boeing and Lockheed Martin. In order to become a global leader in an ultra–competitive
market, such as the aerospace industry, Boeing implements cost reducing initiatives such as lean
manufacturing practices. In order to build a complex item such as an airplane on time and on
budget, a manufacture will require a competent supply chain management system to ensure all the
needed parts are available to the builders. Implementing technology such as automated equipment to
assist in the reduction of human errors and fatigue will reduces costs associated with rework caused
by human error mistakes.
History and background of the organization, also including the types of goods sold and industry in
which the organization operates. The remarkable Boeing Company was founded in the summer of
1916 by the illustrious William E. Boeing. William Boeing built the foundation of the company on
acts and truths rather than assumptions and guesses (Boeing, 2016b). Utilizing facts such as
measuring process times to complete a manufacturing process enables a business to benchmark its
production efficiency. Utilizing a single–factor productivity formula is a simple and effective tool
which measures productivity by dividing the number of units produced by the number of labor hours
used to complete the task (Heizer & Render, 2014).
The undisputed earning leader in 2015 was Boeing with more than

The E Commerce Strategy Of Boeing
Abstract
Boeing is the world's largest aerospace and defense company in the world. The company company
employs over 165,000 individuals within the United States and has a wide span of control over 65
countries. Boeing generates over 90.8 billion in revenue with a diverse spectrum of products and
services. The organizational behavior within a company such as Boeing is crucial to the company's
success. Therefore, an organizational behavior analysis, theory and applications in aviation are
examined within the Boeing Company. More specifically, the aspects of leadership within the
company are researched to determine their effectiveness. The organizational design or structure of
Boeing is examined to ensure the efficiency and correct fit. Organizational culture and managerial
roles are examined to include ethical issues within the company. Boeing on a global scale to include
how the company compares to its peers is investigated. Additionally, in today's world of technology
the business concepts and strategies of many organizations must adapt to be successful. Therefore,
the E–commerce strategy of Boeing is examined. Each of the aspects of organizational behavior are
applied to Boeing and researched to determine if Boeing will continue to prosper as the leading
aerospace and defense company in the world.
Key words: Boeing, Organizational behavior
Organization Behavior Analysis on Boeing
Company Overview.
The Boeing Company primarily designs, develops, and

Boeing and Mcdonnell Douglas Merger
Boeing and Airbus; two longtime rivals fighting over market share in an extremely volatile market
due to high research and development costs and constant changes in market demand was the cause
for Boeing to take drastic protective measures. Boeing which at the time was one of the largest
commercial aircraft manufacturer and third largest aerospace defense contractor decided to merge
with McDonnell Douglas. McDonnell Douglas also produces commercial aircraft but held much
less of the market share than Boeing. The intent of this paper is to describe the search and screening
process Boeing used which is broken down in to three categories: legal, financial and operational,
discuss the valuation criteria, analyze the negotiation and bidding ... Show more content on
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Rolinitis (1997) "The merged company will have approximately 200,000 employees which included
the recent Boeing merger of Rockwell aerospace and defense units. It will operate with estimated
1997 revenues in excess of $48 billion, making it the largest integrated aerospace company in the
world" (The Deal).
Valuation Criteria
Negotiations
Financing
Conclusion
The air craft production industry is one of the most volatile industries due to ever changing supply
and demand and high research and development costs. As the air craft market changed moving
towards more commercial demand and declining defense demand, it became in the best interest for
Boeing and McDonnell Douglas to merge into one joint company making them the largest
commercial and defense air craft production company. There can be quite a bit of issues concerning
the merger of two companies; some concern what is in the best interest of one company and others
may include the concern of not violating trade laws. The purpose of this paper was to describe the
search and screen process and issues; specifically legal, financial, and operational status, discuss the
valuation criteria, valuation and negotiation and bidding processes of the merger between
McDonnell Douglas and Boeing.
References
Andrews, E. L. (1997). Boeing Concession Averts Trade War With Eurpe. The New York Times.
Retrieved from

Case Study : The Boeing Company
Introduction to the Company On my first day I was surprised when I was brought to this huge
company as an intern. At the beginning I definitely had no ideas what should I do and was a little bit
nervous. But after a while when I got what should I do I felt comfortable. The colleagues that I
worked with were very nice and helpful.
The tasks and projects that I was assigned to were very interesting. I had to read, learn, and work on
EVMS and control accounts. At the beginning, I noticed that the work and communication was done
very fast. This was a great opportunity for me to learn because I had little knowledge of EVMS and
after I did my projects I learned a lot about EVMS.
Overall my introduction with the company went really well. The ... Show more content on
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The Rockwell business units became a supplementary and secondary of Boeing, named Boeing
North American, Inc. In August 1997, Boeing combined and unites into with McDonnell Douglas in
a US$13 billion stock swap under the name The Boeing Company. The company's vision is divided
into three different areas which are:
Strategies, Core competencies, and Values. Examples for strategies are, deliver customer value, lead
with innovation, leverage global strength. Examples for core competencies are, detailed customer
knowledge and focus, technical and functional excellence, lean global enterprise. Examples for
values are integrity, quality, safety, trust and respect, and stakeholder success.
Daily Tasks and Activities During my internship in the company, I have worked on multiple tasks,
projects and activities. My projects and activities can be divided into daily tasks that involved office
work, and the lab tours and meetings.
Projects
During my internship in the company, I had been assigned to work on a couple of projects and
activities. My specific projects consisted of the following:
Earned Value Management System (EVMS) In this section I am going to explain what I've

Boeing Executive Summary
Considering our analysis of the company, it is recommended that shares of Boeing should be bought
or held. This recommendation is based on factors such as company valuation, financial analysis of
comparable firms, and a sensitivity analysis. In using the CAPM, the value of the stock calculated is
equal to $192.48, which is more than the current trading value of $153.24 (Apr 13, 2015). In
addition, the shares are also undervalued when using EV/EBITDA and P/E ratio analysis. Every
analysis and calculation used for Boeing has implied that the company's stock is undervalued, so we
are confident this is would be a safe and profitable investment.
Boeing faces aggressive competition in two of the five principal segments: Commercial Airplanes,
along

Boeing Competitive Effectiveness Of Boeing Company
Company Overview
As one of the world's largest aerospace and defence companies, Boeing is operating in the United
States and more than 65 countries with approximately 165,500 employees as on 31 December, 2014.
The international headquarter of the Boeing Company is in Chicago, Illinois.
SWOT
Strengths
By properly utilising the company's unique strengths, Boeing can secure market shares while
remaining its competitive advantages through a robust focus on R&D, strategic collaboration and
alliances, wide market presence and global reach, broad range of product lines and financial health.
Boeing's high R&D investment allows the development of pioneering technologies to reinforced its
strong market position and competitiveness.
The Boeing Company's annual spendings on research and development activities in recent three
years (i.e 2014, 2013 and 2012) are $3.0 billion, $3.1 billion and $3.3 billion respectively, which
accounted for 3 to 4 percent of its total revenue.Thanks to its strong focus on R&D, Boeing has been
able to further expands its product line to meet customers' involving demands. High spendings on
R&D activities also pave the way for leading–edge innovations and critical technological solutions.
The Boeing Company's expenditure on research and development in general is to improve
airworthiness and aerodynamic efficiency of both manned and unmanned aviation systems. The
R&D activities for BDS intend to satisfy various military operational needs in the field of

BOEING AUSTRAILIA (BAL)
Boeing Australia Limited (BAL)
Assessing the Merits of Implementing a
Sophisticated e–Procurement System
Table of Contents
Page
Executive Summary
Part 1
Executive Summary
2
Part 2
Immediate Issue
3
Part 3
Systemic Issues
3
Issue Identification
Environmental & Root Cause Analysis
Part 4
Qualitative Analysis
4

Part 5
Qualitative Analysis
5
Alternatives and/or Options
Part 6
Alternatives
6
Recommendations
7
Recommendations Implementation Plan
8
Part 9
Monitor and Control
9
Part 10
Conclusion & Management Plan
Recommendations
Part 7
Implementation
Part 8
Monitor & Control
1
10
Boeing Australia Limited ... Show more content on Helpwriting.net ...
BAL has worked to develop its core
competency in the areas of space and communications, site management, and the upgrade and
maintenance of military aircraft and equipment. As BAL grew so too did the legacy technology

systems it used for both internal communications and external dealings with customers. BAL now is
facing difficult decisions as it sought to upgrade and improve its procurement systems and processes
to improve operations. Upper management is concerned with the high costs of systems that are
already on the market and concerns that any system will not integrate well with the systems that are
already in place. As well as the different departments within BAL were using the systems differently
to get the same results, large percentage of staff and management resistant to change.
4
Due to the costs involved in upgrading their entire system, was BAL large enough to proceed
without thought to the costs. BAL really only had one major customer the ADF and what would
happen in the future if they lost those contracts.
But, would not upgrading to a new full
system or upgrading the e–procurement portion to work with the systems that are already in place
cause them to lose the contracts as they could not provide the information needed by their major
customers to

Boeing Financial Ratios
Financial Statement Analysis
"Mom, I want to purchase stocks in the Boeing by my money." My son, a 12–year–old boy, told me
a few month ago. His dream job is a pilot, and he has been a big fan of airplanes. The first thing he
would like to do in the U. S. was to join the Boeing factory tour, and his most favorite museum is
The Flight in Seattle, sponsored by the Boeing. Four years have passed since we have been in
Portland, but it seems that his interest has never changed. Now, my son, a digital native, is above me
in terms of the ability to get information from the Internet, he has had a lot of information about the
airplane industry from the internet. According to my son, Boeing would be an invincible company
for the reason that the U.S. ... Show more content on Helpwriting.net ...
Book value per common share is a measure used by owners of common shares in a firm to
determine the level of safety associated with each individual share after all debts are paid
accordingly. The book value per share formula is used to calculate the per share value of a company
based on its equity available to common shareholders. Also, this measurement is used by investors
to evaluate the price of a company's common stock. Since the market value per share is higher than
the book value per share, the stock price may be

Who Is Boeing Used Today?
Boeing's innovative and intricate aircraft structures would not be used today without the
determination and perseverance shown throughout history. Although Boeing has been around for
many years, its history lies throughout many decades.
Founded in 1916, Boeing acted as one of the first aerospace producers in the United States. The idea
for creating Boeing took place in Seattle in 1914, by a guy named William E. Boeing. The company
built many different models such as the 707, 727, 737, and 747. Because the 747 jetliner was so
expensive, it almost caused Boeing to go bankrupt. The Boeing 707 was the world's first
commercially viable jetliner, revolutionizing the travel experience. Then, came out with the 747
which lowered costs and airfares.

Boeing Brief History
History
Looking at the brief history of Boeing, the company was first founded in Puget Sound, Washington
in 1916 by William Edward Boeing.
After sucessfully selling military aircrafts adapted for troop transportation in the 1950's and
introducing commercial aircrafts model 707, 727 followed by 737, Boeing has since then become a
leading producer of military & commercial aircraft.
After a few number of mergers & acquisitions to become the world's largest, most diversified
aerospace company, Boeing enterprise now include: North American Aviation, McDonnell Douglas,
Rockwell International, Hughes Space & Communications, and Jeppesen.
Financial Analysis
1. As you can see from the graphs, over the last three years, Boeing has achieved ... Show more
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Morever, these potential new entrants could be deterred from entering the industry as the
development of aircrafts can take very long lead times. It can take about 15 – 20 years to develop a
next–generation commercial aircraft and production may stretch out for decades, depending on the
no. of units ordered. This may act as a barrier of entry for potential new entrants. Illustrating the
third force which is Power of Suppliers,
There are only 3 main competitors in the commercial jet engine–making industry which operates as
an oligopoly. Historically, all of these companies have competed with each other for jet engine
contracts which led to intense price wars. To avert ruinous price wars, these companies typically
enter into exclusive supplier contracts with aircraft manufacturers. In such arrangements, the engine
maker becomes the sole provider of jet engines for a specific aircraft model.
In addition, the big jet engine makers give heavily discounted price, partly to lock in lucrative long
term replacement parts, repairs and maintenace business, thereby reducing the power of these jet
engine makers.
On the other hand, for the power of customers,
Airlines usually buy new jets under long–term fixed price contracts. This effectively shifts the
financial risk to the aircraft manufacturer as they have no certainty of the future, thus giving

Boeing Supply Chain
From the flow chart above, the Production Planning and Inventory Control Processes covers
manufacturing, storage, and related areas. Specifically, the production planning controls the
designing and management of the entire airplane manufacturing processes input material scheduling
and acquisition, manufacturing, design, and material handling. The inventory control is on the
design and management of storage procedures for the raw materials inputs in the airplane
manufacturing processes, work–in–progress inventories, and final products.
The Distribution and Logistics segment is in–charge of determining the products retrieval and
transportation from the storage to the retailers. These products may be transported to retailers
directly, or may ... Show more content on Helpwriting.net ...
It is this efficient program logic control that facilitates Boeing acquisition of Lockheed Martins.
Boeing uses this segmental supply chain to manages the available resources efficiently and main a
lead in the aerospace market with a stock price that is consistently growing daily.
The Boeing supply chain processes is demonstrated as shown on this chart below for internal and
external operations:
Supply Chain Management Boeing Business Responsibilities in the manufacturing processes
Preferred Specialization Performed at Boeing Sites
Procurement agent section Responsible for developing supply chain processes and negotiate,
selecting suppliers' contracts.
Maintain and assess suppliers' performance and create relationships. Evaluate each supplier capacity
and ability to perform as well as identifying and reducing the supply chain risks The supply chain
covers business, industrial engineering, and distribution segments. Performed at Boeing Sites
Materials Input Procurement Analysis The material segment is responsible for developing, analyzing
and utilizing the supply chain metrics. Create the suppliers' contract management and adequate
documentation to support.
It distributes, manage the supplier with Boeing technical data. The supply chain covers business,
industrial engineering, and distribution segments. Performed at Boeing Sites
The Supply Chain Internal analysis and evaluation This section specializes in the forecasting,
managing and optimizing the

Boeing History
William Boeing bought his first plane and taught himself how to fly in the early 1900's and as soon
as he left the ground crashed his seaplane and nearly destroyed it. Once he destroyed the plane he
started to realize that because it would take so long for him to get the necessary parts to make his
plane airworthy again he could build his own custom plane in a shorter amount of time. The
fascination with seaplanes directed him toward building his own seaplane with his friend G.C.
Westervelt in their hanger on Lake Union in Seattle. World War I might have been the reason why
Boeing exists today because once the U.S. Navy received word of the B & W Seaplane they ordered
50 of them and Boeing Airline Company was born. The vision of Boeing was to not just stop at
seaplanes and once World War II started they saw the demand for fighter planes and began to make
the P–12. This made Boeing the leading manufactuer of fighters over the next decade. In 1928
Boeing designed the Boeing 80 which was their first plane with one intention, to fly 12 passengers
commercially as a airline. The main issue ... Show more content on Helpwriting.net ...
In the last 5 years Boeing has delivered 65% more planes then they did in 2010. Over those years
Boeing's stock returned more than $26 billion dollars worth to its shareholders and has been on a
steady rise every since. The gap between Airbus and Boeing has been diminishing and the
commercial market for Boeing is growing with the new improvements made to their commercial
passenger jet line of planes. They have also executed more than 15 succesful production rate
imcrasees since 2010. Not only did the commercial side of the company grow but the defense side
has grown and improved substancially. Since 2010, the military aircraft and satilites division has
grown over 57% and has continued to rise with the recent launch of their remote satilite which can
be launched from the bottom of a fighter

Essay On Boeing
Executive Summary
In fierce competition with Boeing, venture into VLA segment – as a rather neglected segment by
Boeing – could pose as a strategic opportunity for Airbus which it could utilize to build a
competitive advantage combined with its technological resources and capabilities. However, its
assumptions of a drastic increase in VLAs demanded in next 20 years along with its ability to satisfy
most of this are too optimistic. Provided that these assumptions (inc. breakeven points, initial order
requirements) are normalized, A3XX is a project worthy to pursue for Airbus in order to exploit a
neglected spot on the perceptional map – long–haul + big capacity. When we hold the market itself
continues to grow as proposed in the case, this ... Show more content on Helpwriting.net ...
We don't have a market risk premium value at hand for aviation sector but even if it is 15% – the
rate of return Airbus presumes – then 3.9% + 0.84X(15–3.9) = 13.2. So the project seems feasible.
However, when we apply the operating margin of 15%–20% as the source of cash flow per plane,
we see that from 288 to 385 planes would be needed for a breakeven to compensate investment
costs. If we also take into consideration of the fact that these payments will not be made all in the
first year, each cash flow will need to be discounted based on real interest rate (3.9%) and the year
in question. We can easily say, if the plane price is not appropriated accordingly each year, the
breakeven point will go even farther away from what Airbus imagined.
As for competition, Boeing had built approximately 85% of the industry's current fleet, which
indicates the high experience and brand awareness of Boeing in the industry, which is a competitive
advantage in terms of strong service level. 747–400 is the only model that can be seen as an
alternative to the new Airbus VLA models. Boeing's 747 launch case indicates that this kind of
decision to make for Airbus should based on long term projections. It can be seen as unnecessary for
the

Boeing Versus Airbus: Trade Disputes
Introduction
For years the commercial aircraft industry has been an American success story. Until 1980, U.S.
manufacturers held a virtual monopoly. Despite the rise of the European–based Airbus Industrie, this
persisted through the mid–1990s, when two U.S. firms, Boeing and McDonnell Douglas, accounted
for over two–thirds of world market share. In late 1996, many analysts thought that U.S. dominance
in this industry would be further strengthened when Boeing announced a decision to acquire Mc–
Donnell Douglas for $13.3 billion, creating an aerospace behemoth nearly twice the size of its
nearest competitor.
The industry is routinely the largest net contributor to the U.S. balance of trade, and Boeing is the
largest U.S. exporter. In ... Show more content on Helpwriting.net ...
Perhaps fore–most among these is that the costs of developing a new airliner are enormous. Boeing
spent a reported $5 billion developing and tooling up to produce the 777 wide–bodied jetliner that it
introduced in 1994. The development costs for Airbus's new aircraft, the 555–seat A380 "super–
jumbo," are estimated to be anywhere between $10 billion and $15 billion. (The A380 is Airbus's
direct competitor to Boeing's profitable 747 model line.)
Given such enormous development costs, a company must capture a significant share of world
demand to break even. In the case of the 777, for example, Boeing needed to sell more than 200
aircraft to break even, a figure that represented about 15 percent of predicted industry sales for this
class of aircraft between 1994 and 2004. Given the volume of sales required to break even, it can
take up to 10 to 14 years of production for an air–craft model to turn a profit, and this is on top of
the 5 to 6 years of negative cash flows during development.
On the manufacturing side, a significant experience curve exists in aircraft production. Due to
learning effects, on average, unit cost falls by about 20 percent with each doubling of accumulated
output. A company that fails to move along the experience curve faces a significant unit–cost
disadvantage. A company that achieves only half of the market share required to break even will
suffer a 20 percent

Boeing Company Case Study Essay
This is a case about three different companies dedicated to the manufacturing of aircrafts. Those
three major companies are: Boeing, Airbus Industry and McDonnell Douglas; each of one was
struggling to produce enough aircraft to satisfy a seemingly unquenchable need for passenger and
freight transport around the world, developed in this form many kinds of aircrafts in different
models and styles.
Airbus is a consortium of European aircraft manufacturers formed in 1970; Boeing Company was
founded in 1916 as the world's largest private commercial aircraft manufacturer in the USA; and
finally McDonnell Douglas, considered the third major manufacturer, began operations since 1920
working essentially for the US government, manufacturing ... Show more content on
Helpwriting.net ...
Nevertheless, MD was in financial disarray in 1990, as a consequence of the strong competition and
rapidly dropping demand for its products; the strong emergence of Airbus squeezed MD's market
share. This was the main reason for which the company in the future decides to make a joint venture
with other companies in order to avoid its financial problems.
MAIN PROBLEM
The main problem at this case is how the Airbus industry is going to continue with its financing if
the government subsidies, from which it survived, were being negotiated away because they were
considered and unfairly competence. Also it is important for the company knows what kind of things
has to do in order to be competitive in pricing and how this new paths are going to impact in the
market and in its competitors.
DATAANALYSIS
By looking at all the data showed by the case we can realize that the worst company in the industry
of aircraft manufacturing was McDonnell Douglas because it confronted serious financial problems
since 1980s when Airbus squeezed its market share. In 1984, MD's fleet comprised 28% of aircraft
in service, by 1989 had only 23% of the worldwide fleet, while for example Boeing had 53% in the
same year; in 1990 Boeing had 45% of the market share while Airbus had 34% leaving only 21% of
the market to MD. The strongest company was Boeing which cover about 70% of worldwide
demand, nevertheless the Airbus Industry was

Boeing Legal Impact Analysis Boeing Essay
To: Head of Legal Analytics Department
From: William Locklier
Date: April 25, 2015
Subject: Boeing Legal Impact Analysis
Boeing: An Overview
Boeing is the largest aerospace company and the largest manufacturer of commercial and military
aircraft in the world. Boeing 's military aircraft come equipped with missiles, satellite, launch
vehicles and advanced information and communication systems. Boeing is also the number one U.S.
exporter when it comes to sales. Boeing 's aircraft are flown each and every day, all across the
United States and the world. Because their products are used so heavily, and daily for that matter,
product liability is a major concern for Boeing. The fact that their products interact directly with the
men and women who fly these planes, and that nearly every flight has an average of 200 or more
people on board, these products need to be safe and thoroughly tested. On that note, health and
safety is another major area of legal concern for Boeing. If a fatal accident were to occur, wrongful
death cases are sure to come up if the manufacturer is found at fault. These cases can cost the
company upwards of 100 million dollars in revenue, not to mention the bad publicity that is derived
from them as well. One must take into account that the amount of fatal accidents that occur where
the manufacturer is at fault is on the decline, with only 20 percent of fatal accidents occurring due to
a mechanical failure of some sort, where as pilot error attributes

Boeing Vs Essay
1. Running Head; Boeing Vs. Airbus 1 (NAME) BOEING VS AIRBUS (COURSE) (PROFESSOR)
(DATE) Total World count; 6386 2011
2. Boeing VS Airbus 2 Abstract The demand facing aircraft manufacturers for new orders is in
principal derived fromthe perceived future demand for commercial aviation. Several key external
economic factorsare likely to outline demand for new aircraft. These factors are accessed from the
perspectiveof decision makers in the airline industry, Airbus and Boeing, in this paper. Also
analysed inthe paper are the relevant strategies employed by both airliner makers to manipulate
thisfactors or manoeuvre around them in order to survive in the market. The relevant theories
ofstrategic management are also analysed in the paper. The ... Show more content on
Helpwriting.net ...
The demand for commercialplanes carried on to augment progressively all through the 1930s, but
again endured anotherdemand downturn when World War II broke out. Conversely, the war assisted
in generatingsupport for military aircraft research and expansion, which expanded to commercial
aviation9.The end of war brought a fall down in the aircraft industry as a considerable number of
armyorders were rescinded10. In the 1950s, the aptitude and comfort of commercial aircrafts
advanced significantlyas planes were modernized, including the introduction of jet service in 1959;
facilitating6 Devani Boyd "Safety and Profits in the Airline Industry." The Journal of
IndustrialEconomics, 34 (3): (20000 311.7 Ibid 3128 Ibid 3129 Ibid pp 31510 Heppenheimer, T. A.
"The U.S. Aircraft Industry – An Overview" U.S. Centennial of Flight
Commission.http://www.centennialofflight.gov/essay/Aerospace/AeroOV1.htm.
5. Boeing VS Airbus 5faster cross–country flight service. During this period, Boeing launched
Boeing 707 whileDouglas manufactured its DC models, DC–8 being the latest model in that decade
.11Insubsequent years, Boeing and Douglas competed profoundly to vend their planes byproposing
conventional deviations of a basic design that would serve airlines' particularneeds such as big
wings for long variety. These

Executive Summary Of Boeing
Executive Company Summary:
Intro of Company
The Boeing Company designs, develops, manufactures, sells, services, and supports commercial
jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and
services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft,
Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial
Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger
and cargo requirements; and provides related support services to the commercial airline industry.
This segment also offers aviation services support, aircraft modifications, spare parts, training,
maintenance documents, and technical advice to commercial and government customers. The
Boeing Military Aircraft segment researches, develops, produces, and modifies manned and
unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous
systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment
researches, develops, produces, and modifies strategic defense and intelligence systems, satellite
systems, and space exploration products.
History/Background
The Boeing Capital segment offers financing services and manages financing exposure for a
portfolio of equipment under operating and finance leases, notes and other receivables, assets held
for sale or re–lease, and investments. The company was

Boeing Versus Boeing : Clash Of Industry Giants
Boeing versus Airbus: Clash of Industry Giants
The applied science of flight can trace it roots back to the Montgolfier balloon in 1783. The birth of
aviation, a lighter – than – air balloon, took the European continent by storm. France, Germany and
the English had had their own experimental variations in this new methodology of travel. Each
experiment slightly different, experiments in controlling flight through paddles, fabrics, heating
sources. This eventually evolved into delivery of mail, parachuting and eventually gliders. Europe,
officially first in manned flight, lead the world in aviation.
Controlled, powered flight, a dream that was given life on that sandy dune in Kitty Hawk, North
Carolina, 1903. American inventors, ... Show more content on Helpwriting.net ...
Turbine power afforded more power and reduced weight; more power leads to larger airframes;
larger airframes equal more revenue for airline travel. Air travel is forever changed. Aircraft
manufacturing titans that rose from the perils of war are now at the mercy of the consumer.
Engineering achievements and product development affords manufactures' to survive another
capitalistic day, those who failed, forced into mergers, takeovers or shutdowns.
America reigned as the "defacto monopolistic" leader in commercial aviation industry. (Sharma,
n.d., para. 2). Boeing and McDonnell Douglas maintain a comfortable margin, controlling two thirds
of the world's market shares through the mid 1990's. McDonnell Douglas, a company merger from
the late 1960's, struggled with industry competition in the latter half of the century. Boeing acquired
McDonnell Douglas in 1997; an effort Boeing thought would secure its position within the
commercial airline industry.
The Boeing Company focused its airline efforts into new product development. Engineering
products that never made it passed testing, other engineering products that produced budget
overruns and were severely delayed. New product development errors cost Boeing its lead in
commercial markets, ground lost to its European competitor, Airbus.
Airbus, like Boeing, is consortium of aerospace companies. Companies such as Hawker –Siddley,
Fokker, Casa, Deutsche Airbus and Aerospatiale combined their resources

Airbus & Boeing
Airbus vs. Boeing
Stuart Taylor Chris Tillmanns November 13, 2002
The airline manufacturing industry consists of only two firms, Airbus in Toulouse, France and the
Chicago–based Boeing. Two recent research and development moves at the two firms offer an
insight into the positioning strategy that each is taking in the future market place. It seems the two
firms are accenting two niche markets with a pair of flagship products, neither of which are in direct
competition with each other. This will allow for the firms to stave off price competition in the short
term by differentiating product lines, which is desirable given the recent increase in buyer power
gained by lowcost airlines.
Current Market Position
Airbus
Airbus controls ... Show more content on Helpwriting.net ...
2
Current Aircraft Market
The airline industry is in a downturn. In 2001, the International Air Transport Association had a net
loss of $17 billion, which is more than the industry has made in its entire history. 3 This has led to a
grim short–term outlook for the airline manufacturers, and subsequently Boeing has cut 2002
production in half4 and Airbus by one fourth. 5 This, however, is not necessarily a good measure of
the industry's condition, since both companies have an extensive backlog that can be used to
maintain these new targets. Although the total backlog of 2,783 planes is worth an estimated $172
million dollars6 it is also somewhat uncertain due to lax cancellation penalties negotiated by the
airlines during the boom years. Furthermore, the rise of low–cost airlines does not directly translate
into a larger market for aircraft due to the fact that the success of low end carriers tends to reduce
the demand for aircraft by the large carriers.7 It is important to note however, that this is not a
permanent depression in the market, but a reflection of the cyclical nature of the industry.
Future Airline Industry Outlook
Both Airbus and Boeing, foresee dramatic growth in the airline industry over the next twenty years,
with the firms forecasting average annual growth of revenuepassenger–kilometers at 4.2 and 4.9%
respectively. This will be generated by lower ticket prices and

How To Stop The Boeing Plan
Upon review, Boeing should not undergo their plans in developing the 7E7 class of commercial
planes. In reviewing the information presented, and calculating additional estimates, three areas of
concern revealed themselves. They are the strength of the numerical information given, the plans
themselves, and the varying risks involved in the development of a new class of plan. To follow, will
be the justification for the decision to not continue with the development of the Boeing 7E7, the
alternative if the plan is continued, and a detailed look at the risks involved in taking on the plan as
one of the three reasons to stop the project. The first problem area in Boeing's plan is that some of
the numbers lack reliability. As seen in Exhibit 10, ... Show more content on Helpwriting.net ...
This positive result means that the 7E7 will have some form of economic benefit for Boeing.
However, taking into consideration the above issues, it is not with one hundred percent certainty,
due to the reliability issues of the numbers presented, that the 7E7 project will be a benefit. One
issue with the NPV, is that is fails to take into consideration the risks that are involved in the project.
As one of the primary areas of concern for Boeing, the risks, both internally and externally, are far
too great to be

Boeing Case Study
The Boeing Company is an international aerospace and defense corporation originally founded by
William E. Boeing in Seattle, Washington. The international corporate headquarters are now located
in Chicago, Illinois (Boeing, 2009). Boeing was initially incorporated as Pacific Aero Products
Company in 1916 (Boeing, 2009). Since 1916, Pacific Aero Products Company has transformed into
Boeing and expanded into the largest global aircraft manufacturer by revenue, orders and deliveries,
and the second largest aerospace and defense contractor in the world (Wikipedia, 2009). Boeing is
the largest exporter in the United States and its stock is a component of the Dow Jones Industrial
Average (Wikipedia, 2009). Boeing currently employs more ... Show more content on
Helpwriting.net ...
This will be the capital structure weight for the WACC. Thus, debt percentage is 34.4% and equity is
65.6%. WACC = 34.4*0.0533(1–0.35) + 65.6*0.1582 = 1.1917 + 7.3996 = 11.6% The WACC
calculates an overall return that a corporation must earn on its existing assets and business operation
in order to increase or maintain the current value of the current stock. At the date of this case, stock
prices for Boeing closed at $36.41. In order to maintain this stock price over the life of the 7E7
project, the company must earn at least 11.6% returns from the project. Overall, based on the initial
calculations, the project appears to be economically reasonable. The discount rate for this project
should be 15.82% however, to maintain the value of stocks, Boeing only needed an 11.6% return
from the 7E7 project. This means the company had a good safety margin in discounting cash flow to
net present value. Sensitivity analysis is a technique used to determine how varying independent
variable values will impact a selected dependent variable under given assumptions. Utilizing
sensitivity analysis is a way to predict the outcome of a situation if key predictions turn out to be
different (Investopedia, 2009). In the sensitivity analysis depicted in Exhibit 9 of the case, the
company's base internal rate of return (IRR) is 15.7%. Exhibit 9 shows changes in the IRR based on
the number of units sold and the price premium

Analysis Of Boeing
Distinctive competency and competitive analysis
Distinctive competencies are organization's specific strengths which allow the company to
differentiate its products from those products which are offered by rivals (Hill, et.all,2017, p.81).
Boeing strength lies on customizing of aircraft and designing and proactively in meeting customer
demands and needs. To compete in market Boeing developed action which covers enhancing in
efficiency, quality, innovation and customer responsiveness. The development process deals with
improving the speed of R&D. global sourcing of Boeing aims to achieve greater economies of scale.
core competency of Boeing commercial aircraft is based on its product innovation strategy. Boeing
is forecasting the market after ... Show more content on Helpwriting.net ...
government laws, regulations and policies can have significant impact on company. Boeing has deep
relationship and agreement with U.S government. And European government's regulations can be
main driving force for the purchase of new aircraft in future. There may be high level of political
intervention which can have impact on sales of aircraft. the situation of country's economy is major
factor that affects operation of Boeing. Economic factors such as; interest rate inflation rate and
currency exchange rate, positively affect the purchasing power of potential customer. in addition,
financial crisis and economic recession have forced people to reduce their spending on travel. this
may lead reduction in aircraft order. similarly, fluctuation in fuel prices and higher security cost and
insurance cost may positively impact on company. as a company is operating in multinational
environment Boeing needs to consider social factor which may affect demand and sale of aircraft.
likewise, changing needs and wants of consumer with increasing population. analyzing
technological factor in the manufacturing of Boeing aircraft usage of more carbon composites and
equipment (light weight material) will make aircraft more fuel efficiency and weight less which
enable the aircraft to fly longer distance (Hill, et.all,2017, pp.C–52). using hi tech

Boeing Financial Analysis
The Boeing Company Financial Analysis 2007–2011
Group 1
Financial Statement Analysis, FIN 506, Winter 2013
Professor Steve Ranger
Table of Contents I. Introduction to Boeing 3–5
II. Overview of Industry 5–7
III. Management Analysis 7–10
IV. Presentation of Financial Reports 10–16
V. Common Sized Presentation of Restated Reports 17–22
VI. Detailed Discussion IV & V 23–30
VII. Liquidity Short–Term Ratios & Analysis 30–33
VIII. Long–term Debt Paying Ability Ratios and Analysis 34–35
IX. Profitability/Long–term Activity/Investor Ratios and Analysis 36–38
X. Scenario Analysis 38–47
Appendix A: Competitor Restatements and Common ... Show more content on Helpwriting.net ...
Network and Space Systems (NSS) designs satellites, launch vehicles, and defense systems. The
division is also the world's largest supplier of both commercial and military satellites. The most
famous satellite system from Boeing is the GPS system we all use every day. Commercial customers
include many well–known businesses like DirecTV and SIRIUS XM Radio. Boeing manufactures
launch vehicles via a joint venture with Lockheed Martin known as United Launch Services. This
group designs and manufactures the Delta II as well as three launch vehicles. NSS is currently the
largest contractor for NASA being the main for supply of the International Space Station.
Boeing Phantom Works develops advanced systems and technology to meet future customer needs
as well as scoping out opportunities to broaden the company's offerings. Phantom Works has five
distinct sections: Advanced Boeing Military Aircraft, Advanced Network & Space Systems,
Advanced Services, Strategy Development & Experimentation, and Phantom Works Ventures.
Systems under operation include Directed Energy Weapon Systems (lasers), Wideband Global
SATCOM (future battlefield communications), Phantom Eye (hydrogen–fueled unmanned
surveillance) aircraft, and X37B Orbital Test Vehicle.
II – Overview of Industry Boeing is part of the Aerospace and Defense Industry (A&D); at $68.7
billion in sales in 2011, it is the largest company in its global peer group.

Management Planning – Boeing Corporation
Management: Theory, Practice and Application/MGT330
Management planning is the first basic process in a series of four fundamental management
functions. The planning function is a vital for any company because it is a process of formulating
goals, provides focus to achieve those goals, and gives direction in the attainment of the goals.
Boeing is a large, global corporation and many internal and external factors effect its business.
Boeing must adhere to certain regulations, such as those instituted by the Federal Aviation
Administration (FAA). The organization designs, builds, and supports commercial and military
aircraft in the United States and ... Show more content on Helpwriting.net ...
The last step of the planning process is controlling and monitoring and is ongoing. All levels of
managers are involved in this process using controls that measure the performance and progress of
the plan. This step also allows adjustments to the plan because changes sometimes occur or the plan
was executed improperly. The strategic, tactical, and operational planning must be aligned in order
for a plan to succeed.
Legal Issues, Ethics, and Corporate Responsibility
Many internal and external factors influence planning management. Legal issues can destroy a
businesses reputation and affect its profitability. In the 1998, Boeing settled a gender discrimination
case and agreed to pay $75 million dollars to the accusers. Women employees accused Boeing of
paying them significantly less wages than employees who were men. According to BLR.com
(2010), "Boeing admitted no wrongdoing but agreed to change its hiring, pay, promotion, and
complaint investigation procedures" (HR and Employment Law News, para. 2). As a result of the
lawsuit, Boeing used the planning function in the human resources management. Other issues
influence Boeing's planning function.
Boeing and its managers are not innocent from unethical behavior. A CEO of Boeing was fired in
March 2005 for participating in an extramarital affair (Holmes, 2005). This was a violation of
Boeing's ethics code that the CEO expected

Ratio Analysis of Boeing
The Boeing Company operates in the industry of aerospace and defense. The largest aerospace
company, Boeing is the #2 maker of large commercial jets (behind rival Airbus) and the #2 defense
contractor behind Lockheed Martin. The aerospace and defense industry did suffer the effects of a
post–9/11 society. Because of the weakened and fearful tourism market, spending on commercial
aircraft did decrease. But recently, revenues have improved considerably as travelers are becoming
more comfortable with flying again. Defense expenditures are the leading source of revenue for the
US industry. Boeing, despite aerospace spending decreasing, has profited from projects such as the
missile interception network and revamp of the US armed forces. The ... Show more content on
Helpwriting.net ...
Also, the dividend yield is a very important measure of profitability to investors. The dividend yield
measure shows the rate of return to common stockholders in terms of cash dividends.
The Boeing Company performs very well in terms of ratios. Boeing's earnings per share on common
stock is 2.81. Also, Boeing's price earnings ratio is 33.31 and their dividend yield is 1.4%. Boeing's
stock is currently selling at 93.67. Boeing looks to be a pretty steady stock, as analysts are predicting
that its mean target is 99.83 and its low target is 70, while the high target is 114.
Boeing is a global company, considering it has customers in over 90 countries around the world and
is one of the largest U.S. exporters based on sales. It also has employees in 70 of the countries that it
deals with. Boeing is in a bit of a tough spot with outsourcing considering that they deal with
government defense contracts. They are taking large bounds to really work with their global
partners. Instead of just outsourcing call sources or manufacturing, they are actually outsourcing
engineering and design positions as well. One of Boeing's executives really summed up their goal
quite well with this quote, "One of the things we have found [is that] it 's best to have the people
building the parts designing the parts," says Michael Bair, Boeing 's vice–president in charge of the
787 program. "It 's arrogant for us to sit here in Seattle

Boeing Company Case Study
For centuries, companies have faced many diversity problems. Boeing is a prime example of how a
company faces diversity and how the company handles the situation. Boeing has been facing
diversity challenges since the company opened their doors to the public and government contract
work. The discrimination of African Americans and women drove Boeing to a couple lawsuits.
Diversity can either destroy a company if the situation is not handled correctly, or it can make a
company stronger and the business can thrive from past mistakes.
"The Boeing Airplane Company was founded in 1917 by William Boeing and began with hiring
only 28 white male employees which consist of pilots, carpenters, boat builders, and seamstresses"
(Boeing, 2006). After ... Show more content on Helpwriting.net ...
"The first attempt at trying to get Boeing to confess that they were only hiring white race began in
1939" (Northwest Enterprise, 1940). The African American community choose Hutchen R. Hutchins
to be there speaker and activist for this cause. (Davenport, 2005). Mr. Hutchins was a black activist
and a reporter for Northwest Enterprise before he decided to help fight the discrimination that was
happening at Boeing (Davenport, 2005). He was appointed head of African American Communist in
Seattle when citizens started getting behind the movement. The movement began gaining support
and with more people backing it, IAM and Boeing went to court to settle the dispute. Boeing
claimed that they were not being race discriminate but it was IAM who was not allowing them to
come work for Boeing (Pitts, 1941). IAM would not take responsibility, but both companies had a
clause in the oath that stated: "I will not recommend for membership in this union any other than
members of the white race" (Pitts, 1941, p.74.). This oath was repeated before every Local meeting.
(Pitts, 1941). Negotiations took place between IAM, Boeing, and the African American Community
as to what they can do to settle it. After several conversations and meetings discussing what would
work best for each party, the union members promised to open job opportunities to the African
American Community and remove the offensive oath (Taylor, 1994). "In 9142,

Swot Analysis Of Boeing
Group #1:
MGMT Diversity
Boeing
Boeing headquarters is an aircraft manufacturing company founded by William E. Boeing on July
15, 1916 in Seattle Washington but was later relocated to Chicago in 2001. The company started by
producing a single canvas and wood airplane that completely transformed transportation. This
invention allowed them to successfully become the world's largest aerospace company and
furthermore has allowed them to become the leading producer of military aircraft, helicopter, space
vehicles and missiles. Their three main groups of products and services are commercial airplanes,
military aircraft and missiles, space and communications. They manufacture seven distinct families
of commercial aircraft which are assembled in two facilities: Renton and Everett, WA and another
facility in California. The Renton plant is most popular for building the narrowbody Boeing 737. In
Everett, they are known for assembling the 787 aircraft, also assembled at a facility in North
Charleston, South Carolina. Apart from being known for their famous aircraft inventions, the
company is also known for having a diverse workforce as they have partnered with minority
institutions and historically black colleges and university. According to Ted Colbert's message, this
has allowed the company to have a strong position as it begins its second century. This is very
beneficial for the company since being an American multinational company corporation that
designs, manufactures and sells airplanes, satellites, and many other creations around the world,
their diverse workforce allows proper communication between clients and the company.
Furthermore, diversity also allows an open minded and objective perspective from employees which
is essential for any company.
Diversity can be defined as the real or perceived variations between people which have an effect on
their relationship and interactions with others. Diversity can be caused by differences in people such
as their race, ethnicity, sex, religion, age, physical and mental abilities as well as sexual orientation,
appearance, income and social status. In many cases in companies, a diverse workforce has created
conflicts, discrimination and disagreements between people due

Case Study Boeing
1. Management of the relationship with the customer
Showed that the target groups are planning to send its strategy at the level of an important
enterprise. Clients of the community to break into groups based on customer needs, and market
segmentation is mentioned. Boeing worked as the focus of a major competitor (Airbus) in the
production of super jumbo aircraft. Boeing saw a potential market that is not touched by Airbus, a
small field. Thus, it is possible to receive a number of airports in the world. A large number of
orders generated from various airlines around the world.
Then, ranch identify target customer needs, product or service meet. Between 2001 and 2005,
Airbus has won the battle because they focus on the market for medium and efficient than Boeing,
and ... Show more content on Helpwriting.net ...
Leadership targeted cost
4. Target differentiation
5. Integrated Leadership / cost differentiation
In the case of Boeing, differentiation strategy of the company. This strategy, integrated set of actions
to produce goods or services (fee received) are regarded as different customers in a way that is
important to them.
Boeing produces small size of the field to the targeted consumers. Boeing is working as above in the
field of consumers who have a small advantage in many airports that are not too big around the
world quickly and without transit.
Boeing was not able to implement the strategy of domination of the cost due to high production
costs. Lack of skilled staff on the plane, reducing human resource costs can not be reduced to a
minimum. In addition, to make different products (the smaller devices) with the same value of the
product. In fact, due to its unique, different products or services that are sold at a premium price.
Boeing but also their prices are too high for differentiated products are sold at a cost that the
consumer believes that given the competitive 's characteristics as compared with the cost or offer a
combination of features of competing products.
3. Corporate–level

TN16 The Boeing 7E7
THE BOEING 7E7
Teaching Note
Synopsis and Objectives
In 2003, the Boeing Company announced plans to build a new "super–efficient" commercial jet
called the "7E7" or "Dreamliner." This was a "bet the farm" gamble by Boeing, similar in magnitude
to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new
airframe, as well as the fact that it would penetrate a rapidly growing market segment, were
arguments for approval of the project. On the other hand, the current market for commercial
airplanes was depressed because of terrorism risks, war, and SARS, a contagious illness that resulted
in global travel warnings. Boeing's board of directors would need to weigh those ... Show more
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The instructor could easily take a "devil's advocate" approach toward the prevailing sentiment and
invite defense of the students' opinions. In any event, acknowledgment of a range of estimates builds
drama and confirms that there are competing views among students–this motivates a detailed
discussion of the financial analysis.
3. How would we know if the 7E7 project will create value?
Students may be familiar with the classic NPV criterion. This case invites them to focus on the
internal rate of return (IRR). If the IRR is greater than the project cost of capital, the 7E7 is a
positive net present value project.1 A discussion of why this is true provides a solid "big picture"
foundation for the case decision. The project IRRs are presented in case Exhibit 9. Therefore, the
focus of student analysis should be on determining the benchmark against which to evaluate the
IRRs. Thus, this part of the discussion helps to motivate the analysis of WACC. Some students may
have voted in a manner that contradicts the IRR versus the cost of capital decision rule. This sets up
the next question.
4. Okay, let's examine the details of how to estimate the WACC. Let's go step–by–step. Where shall
we get started?
The instructor can ask one student (or team of students) to walk the class through the detailed

calculations. The presenter(s) may make one or more errors or adopt some controversial practice in
making the calculations. This presents a strategic

Boeing Industry Analysis Paper

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